Topic overview

Network servers

Network servers

A network server is a powerful computer connected to your business network.

Network servers have many functions and can form an important part of your computer network.

They are usually used for shared file storage, email management and to run centralised applications, such as your customer database.

Most functions traditionally performed by servers can now be carried out through cloud computing. However, the cloud is yet to completely negate the need for on-site servers, and a combination of the two technologies is sometimes used in certain industries.

Do you need an office server?

If your business is faced with issues in any of the following areas, it may be appropriate for you to start using an in-house server:

  • Sharing information privately. Your network server can run centralised software (like your customer database) or be used to create a company intranet (a kind of private website just for your business). If you work with particularly sensitive data, keeping it in-house might be advisable.
  • Storing files centrally. Instead of saving files on individual computers, you can store them securely on your office server.
  • Controlling user access and data security. A network server makes it easy for you to give different people access to different files, programs or data and do so in a highly-controlled, secure manner.
  • Keeping software updated. With a server, it's easier to roll out new software or make changes to every device on your company network.
  • Managing security risks. It's easy to back up files to a central location. And by routing internet access via the server, you can block suspect websites.

If your business has more than ten computers, the benefits of a server may well outweigh the costs. Smaller companies can see a good return on their investment too, but the benefits may be less immediate.

There are some alternatives to a full-blown network server. If you just need somewhere central to store files then a network attached storage (NAS) device. An NAS device is a hard drive with a network connection. You simply plug it into your existing business network in order to save and retrieve files. Alternatively, a cloud service such as Dropbox could do the job. Such cloud computing services are simple to set-up, cheap to operate and most come with 24/7 support if you experience problems.

What is a virtual server?

As computer hardware has become more powerful, a technology called virtualisation has redefined the way businesses implement servers.

Server virtualisation makes your server more efficient by dividing it into several 'virtual' servers. Each one functions like a separate server which means you can use your server to perform more tasks at once without purchasing additional hardware.

Nigel Green, a Dell product manager, explains, "Servers have become more powerful, to the point where using a server for a single function is very inefficient. Typically, a company might only be utilising around 15% of a server's total capacity. There's no other area of business where you'd leave 85% of a resource unused!

"Virtualisation allows you to take a single server and slice it into several virtual servers. Each virtual server can be used for a different function, so instead of having four servers each running at 15% capacity, you can have one running at 60%. Virtualisation will also let you spread the load of apps across two or more physical servers. This improves reliability, because if one server fails, the others can pick up the slack."

When should a business consider virtual servers?

A good time to consider a virtual server is when your server hardware or software needs updating anyway. Many companies build their IT up in an ad-hoc manner. They might start with an email system, then add a customer relationship management system and some accounting software. Once one of those systems needs updating, that's when they start introducing virtualisation in phases.

However, if a significant proportion of a company's IT is due for renewal at the same time, it makes sense migrate everything at once. It really depends on your company's particular circumstances. Getting expert advice is really important."

Network server costs

A simple server can cost £500-£700, but is only likely to provide basic services to a small network of around five computers. You need more power to support extra computers, run large databases and handle a large volume of email.

High-capacity servers start from around £3,000.

Your network server will become the lynchpin of your business IT systems, so consult your IT supplier and build a comprehensive set of IT requirements before you purchase.

For more advice on choosing and using a network server, see our essential guide to network servers.

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