Leasing or Buying Servers

In any developing company, the server becomes not just an additional auxiliary equipment, but a necessity. In such circumstances, one of the key issues becomes: which is better to do: leasing servers vs buying.

In the company’s infrastructure, the server acts as the base of the entire digital ecosystem. It not only stores data that is necessary for the functioning of the company. It also acts as an application support system, as well as the stabilization of communication aspects between managers, customers, and employees. 

If you are currently faced with the need to purchase a server, then here we have compiled recommendations that will help you make a choice between buying and renting equipment. 

Why Do You Need a Server? 

It’s not difficult to figure out whether you need such equipment or not, but first, you should figure out what it is and what functions the server performs. 

Many people consider the server simply as a kind of “hard disk”, and its main task is to store data. In simple words, it is the main part of the entire IT infrastructure. All processes in the organization are carried out smoothly. And there’s more to it than just a storage system.

Among the main functions of such equipment are:

• Data storage in a single system;
• Managing saved information;
• The ability to work together between employees safely;
• The ability to have shared and remote access to data;
• Standardization of the IT environment;
• The ability to process data quickly with minimal delays;
• Centralized control; 
• Hosting of business applications, CRM systems, ERP and websites. 

What Is Server Leasing? 

Renting has become a normal practice in the modern world, as it makes it possible to get some expensive equipment without having to pay the entire amount at once. 

This is a service where an organization receives a server or other equipment for temporary use for a certain amount of money. Usually, such a device is installed in special data centers of the client or other premises equipped for it. 

This option is mostly chosen by small companies that cannot afford expensive equipment due to certain conditions, for example, developing startups. 

The rental process usually consists of four main steps:

1. The client signs a contract with the hosting provider.
2. At the second stage, you need to determine the type of configuration depending on the operating conditions and other factors. In particular, you can choose among CPU, RAM, disk space, or other options. 
3. The server is sent to the client’s company and installed in special data centers.
4. Then there is direct operation, along with technical support, all updates, so that the equipment ensures uninterrupted operation.

If a project has tight conditions, including from the financial side, limited implementation time, or, for example, the IT team is weak or does not work at all, then renting becomes the optimal solution.

Choosing the Right Option

It is impossible to give an unambiguous answer to the question: what to choose to rent or buy, since it depends on many aspects. And it’s worth making decisions, taking into account all the factors at once. You can’t rely on just one, because then the decision will be wrong.

So, what should be considered before making a decision?

• The size of the business. Large and medium-sized companies can not only afford to buy a server, but it is also necessary. Such a business will scale and a reliable and long-term solution is needed. But renting is suitable for small companies, since they cannot afford large monetary investments. 
• Budget. We all understand that buying a server is an expensive pleasure, and not all companies have such a budget. In addition, to spend such a large amount of money, you need to be sure that the solution is long-term. Renting is a more convenient option at the moment.
• Efficiency. In complex systems and infrastructures, only individual configurations are required, since the systems require a lot of resources and must work without overloads, even under high loads. Our own server allows for individual solutions.
• Safety and compliance with standards. For some industries, buying becomes the only solution, since these areas are regulated, for example, finance and medicine. If you fully own the server, then centralized control is easier and safer.

Only taken together, all of the above characteristics can help to give the right answer and make an appropriate decision for the business. 

Which Option Is Better? 

Again, you can’t answer the question right away because you can’t solve everything quickly based on just one characteristic. It is worth planning tasks for the long term, as well as opportunities to scale. Let’s pay attention to the main characteristics that should be considered when choosing:

• Economic efficiency. Buying a server can pay off, but over a long period, so it’s worth evaluating the long-term investment. But the rent will allow you to save money right now, although you will have to pay constantly.
• Setup and management. Control and a full set of settings are available only when purchasing a server, as you can customize individual solutions. These are not only configurations, but also software. But when renting, the provider may limit due to its capabilities or company policy.
• Reliability and scalability. Renting is, of course, safe. If you choose a reliable provider. But there may be problems with scalability. But there will be no such issues with your equipment. 
• Deadlines and goals. If you need to launch projects quickly, or if the solution is temporary, then renting will be the best solution without unnecessary investments. But for long-term tasks and thoughtful ideas that should work stably, it’s better to choose your own devices. It’s worth looking into the future to make a decision. 
• Support. If you buy a server, you will have to create your own IT team that will support the functioning of the system. But with a rented device, difficulties may arise without your own team.
• Updates. The leased equipment is updated when the provider decides, or as specified in the contract. But for the purchased one, you can do it when you need to.

Having considered all the arguments, we can conclude that buying and renting are good ideas and provide many business opportunities. But for each case and its own conditions, you should choose your option. If you need a long-term solution with the ability to scale and make individual settings, then buying a server would be preferable. But for small companies with small opportunities and not yet developed businesses, it is better to choose a lease as a temporary option.

When evaluating an option, it is also worth remembering about the size, security, budget and timing of the project. Buying is always more profitable, but only in the long run, but renting will be easier now without unnecessary costs, installations, settings, and other actions necessary for work. Think about the tasks of your business, and then it will be easier to make a decision.