Telecoms & Connectivity
Cyber & Data Security

Server VS Cloud - Which is best for your business?

This article was updated on:
Aug 15th, 2018

Server VS Cloud - Which is best for your business?

Traditionally, when most businesses start up, everything is understandably done on a budget and just enough is done to get things started. This includes the technology a business uses.

The business owners may buy Personal Computers (PCs) from a local retail store, buy some business software and then, as the business grows, they ad-hoc buy more PC’s as needed.

In this scenario, the usual way of sharing files between colleagues is via email. Over time, you may progress to using a file sharing service such as Dropbox or Google Drive. Everything runs fine for a time but eventually your business grows to 5 or 10 employees, and then you start to run into problems. Files get duplicated. Documents get overwritten and lost. Time is wasted searching for information.

At this stage, most businesses traditionally looked to a networked server to share their files and solve their problems. But nowadays, you have alternatives – including the aforementioned Cloud services.

Which should you choose, server or cloud? Let’s take a look at some common scenarios.

I want to share files easily between all of my PCs and setup security so people can’t get into folders they are not allowed to.

The most common starting point most people take is to install a Network Accessible Server (NAS) box. On these boxes, you can setup users with their own usernames and passwords and give them access to specific folders. Maybe everyone has access to a ‘Company Files’ folder but you restrict access to ‘Accounts’ or ‘HR’.

Office 365, Dropbox, Box and Google Drive can all do the same thing but their services are all in the cloud. Users can log into a website using their own usernames and passwords and see the company folders and you can restrict access in the exact same way. You can even sync the files down to the PC’s or your laptop and work on files from home or in the office!  

Sharing files between lots of employees is no longer a reason to buy a server. Office 365 is an amazing product that allows your team to work together in the cloud, so for file sharing and more a cloud solution is your best choice.

Employees want to be able to sit at any desk, login and see all of their files, they want all of their programs to just work.

When you just network computers together a user you create on one computer won’t be able to log into another and the files won’t automatically move between the PC’s on their own.  

Firstly, users shouldn’t be saving files to their desktop really, anything on the desktop normally doesn’t get backed up.  

If you use Office 365 there is a feature that lets users in Office 365 log into any computer on the network running windows 10 pro. If you don’t use Office 365 then your only option is to use a server.

A server holds a central list of all of your employees and computers and if setup correctly allows any user to log into any PC and all of their files from the desktop and my documents folders will follow them. It’s great for hot-desking and also means that you can backup user’s desktops and document folders from the server.  

As your business grows you start to think “We need to protect our files better, because if anything were to happen we would struggle big time!”

You currently don’t have a server so that means you either store documents on each PC or you share files using something like Dropbox.  

How are you backing those files up?

We’ve heard it a million times “It’s in the cloud they back it up”

This is a common misconception, but don’t be fooled, if you delete a file by mistake, its gone and If you get a virus on any of the PC’s then everything is gone!

As with sharing files with everyone on the network the cloud solutions work great but you still need a backup and there are some great solutions out there that will backup Office 365 and Dropbox properly.

These backups will only backup the files that you put into them. So, if your employees like to save lots of files to their desktops or documents folder, they need to stop doing it. Alternatively, you can use a server to back these up automatically.

You want to share access to Sage or QuickBooks so more than one person can log it at a time.

Technically speaking both Sage and QuickBooks can be shared out from a single PC. Other PC’s with the accounting software installed can then access the master PC. The downside is that the PC has to be on for it to work and it can make the program or master PC run slower.

If you need to run the software on more than two other PC’s it’s time to consider a server or look at using a cloud hosted solution. QuickBooks online or Sage one are both full accounting packages accessed by logging into a web page. They can even take your existing data and upload it into the cloud version so you don’t have to start from scratch you must move everything into the cloud.

You want to share access to a CRM or other industry specific application on all of your computers

If you use some specialist software and want everyone to use it and access the same data then it really depends on the software.  

You will need to call the software provider and ask them the question; how do I share the data with everyone in the office?

If there is no cloud version of the software then the options typically are share the files out from one PC or install a server. As with Sage and QuickBooks above if you need more than one PC connecting it’s better to put the data onto a server.

Sharing the data from a server is more reliable and resilient to failure than PC’s.

You want to have remote access to all of your files and software

Remote access can be easily achieved without the use of a server for a small to medium sized network. If you have a PC in the office which is yours and no one else uses, then a service such as Go to my PC, LogMeIn or TeamViewer all work well.  

From home you install the software and it will connect you to your PC in the office and you can open up all of your files and applications as normal.

Larger organisation’s of 50+ employees or if you hot desk will want to use a server to provide access but for anything less than this you may be able to use one of the services above. Just be conscious that opening up remote access does come with security risks to be sure to enable two factor authentications to make it more secure.  

Summary

Now you should understand your options better or at least have a few questions to ask your software vendors. Installing and maintaining a server does come with significant costs in the hardware and also setup but they can definitely solve a lot of problems. The trend at the moment with all these clouds based software services is to do more without a server. It’s very possible to run a large network without one but the truth is that eventually you will need one and you may be forced by the software you want to use or problem you are trying to solve.

Talk to one of our friendly experts.

Keen to learn more? Explore our other related resources below:
December 13, 2025
Password ‘Sextortion’ and Ransomware
Cyber & Data Security
August 1, 2025
Thinking About Buying Second-Hand Tech for Your Small Business? Read This First...
Telecoms & Connectivity
IT Management, Policies & Certifications
July 1, 2025
How Might Hackers Exploit My Cyber Security? 7 Tricks Small Business Owners Need-To-Know!
Cyber & Data Security
May 1, 2025
MFA Isn’t Optional Anymore: Here’s Why
Cyber & Data Security
IT Management, Policies & Certifications
April 1, 2025
Why Digital Offboarding Needs to Be on Your Radar!
Cyber & Data Security
February 12, 2025
Upgrading to Windows 11: It’s ESSENTIAL, Let us explain why!
Cyber & Data Security
February 1, 2025
11 Simple Steps to Keep Your Microsoft 365 Data Safe
Cyber & Data Security
Microsoft 365
May 23, 2022
The 5 Benefits of Outsourcing IT Support
IT Management, Policies & Certifications
Cyber & Data Security
May 14, 2021
Top Benefits of Microsoft Teams
Microsoft 365
Telecoms & Connectivity
May 12, 2021
Cyber Essentials Toolkit
Cyber & Data Security
April 19, 2021
Why your Business needs Microsoft 365 Backup
IT Management, Policies & Certifications
Cyber & Data Security
March 4, 2021
Is Microsoft 365 Secure? Our 5 Essential Tips to Stay Safe
Microsoft 365
Cyber & Data Security
February 1, 2021
Free Cyber Security Awareness Training!
Cyber & Data Security
December 20, 2020
Why Do Businesses Only Care About Cyber Security Once They Get Hacked?
Cyber & Data Security
June 5, 2020
Horizon VVX 150/250/450 - Do Not Disturb Mode
Telecoms & Connectivity
June 5, 2020
Horizon VVX 150/250/450 - Handling Calls
Telecoms & Connectivity
June 5, 2020
Horizon - Accessing Voicemail on a VVX 250/450 Handset
Telecoms & Connectivity
June 5, 2020
Horizon - Conference Calling on a VVX250/450 Handset
Telecoms & Connectivity
June 5, 2020
Horizon VVX 150/250/450 - Transferring Calls
Telecoms & Connectivity
November 6, 2019
Password Security—The Benefits of Multi-factor Authentication
Telecoms & Connectivity
October 17, 2019
Ransomware – Should You Be Worried? 
Cyber & Data Security
October 10, 2019
Do you know your FTTC from your FTTP? Broadband Options Explained
Telecoms & Connectivity
August 12, 2019
Identity Fraud - Easier Than Ever
Cyber & Data Security
March 28, 2019
Invoice Diversion Scenario
Cyber & Data Security
March 26, 2019
Phishing/Ransom Attack Scenario, What Would You Do?
Cyber & Data Security
March 13, 2019
The difference between Cyber Essentials and Cyber Essentials PLUS
Cyber & Data Security
December 4, 2018
What is the Difference Between Penetration Testing and Vulnerability Scanning?
IT Management, Policies & Certifications
Cyber & Data Security
November 28, 2018
How Secure is My Password?
Cyber & Data Security
November 2, 2018
How much help do I need to get Cyber Essentials Certified?
Cyber & Data Security
October 23, 2018
What is an SSL certificate and why do I need one?
IT Management, Policies & Certifications
Cyber & Data Security
October 3, 2018
Defining the Scope for Cyber Essentials
Cyber & Data Security
October 1, 2018
Is it time to switch your IT partner?
Cyber & Data Security
October 1, 2018
The Facebook Breach: This is What You Need to do NOW...
Cyber & Data Security
September 20, 2018
Email Spoofing Scenario
IT Management, Policies & Certifications
Cyber & Data Security
September 11, 2018
How to protect your business from hackers
Telecoms & Connectivity
September 4, 2018
What is the process of changing to cloud telephony?
Telecoms & Connectivity
August 24, 2018
What is OneDrive and why should my business be using it? 
Telecoms & Connectivity
Cyber & Data Security
August 20, 2018
What is GDPR?
Cyber & Data Security
August 17, 2018
What is SharePoint and how can it help my business?
Telecoms & Connectivity
August 14, 2018
Does my small business really need a server? 
IT Management, Policies & Certifications
Telecoms & Connectivity
August 14, 2018
Why Should I get my business Cyber Essentials certified?
Cyber & Data Security
August 14, 2018
How Much Does Outsourced IT Support Cost in 2023?
IT Management, Policies & Certifications
Cyber & Data Security
July 13, 2018
What are the Benefits of a Cloud Hosted VoIP Phone System?
Telecoms & Connectivity
May 1, 2018
The Difference between NCSC Small Business Guide & Cyber Essentials
Cyber & Data Security
December 2, 2017
Cyber Essentials Certification: Everything You Need to Know
Cyber & Data Security
January 22, 2009
Are there any substitutes to ISO 27001 suitable for my business?
Cyber & Data Security
IT Management, Policies & Certifications