Buy or rent a dedicated server: which is more profitable?

We live in a digital age where businesses increasingly depend on powerful servers to process data, manage clients, and conduct transactions. Many companies are faced with the question: what is more profitable - to buy a server and maintain it yourself or rent from a reliable provider, such as SIDATA? Let's look into this issue using real data and economic calculations.

Buying your own server: romance or headache?

Buying a server is a serious investment, and for many businesses it seems tempting. It seems that once you buy a server, it’s yours, and you can do whatever you want with it. But it’s not as simple as it might seem at first glance.

To calculate the cost of purchasing a server, let's take an average set of equipment. Here's an example:

• CPU: Intel Core i7-7700K | 4.2-4.5 GHz — 5,790 UAH
• RAM: Kingston FURY 64 GB (2x32GB) DDR4 3200 MHz — 6,513 UAH
• SSD disk: Kingston 960 GB DC1000B (SEDC1000BM8/960G) — 6,128 UAH
• Motherboard: GIGABYTE GA-B250-FinTech — 5,345 UAH
• power unit: Gamemax 500W — 1,000 UAH
• Frame: server case - 4,500 UAH

In total, the equipment costs 29 276 UAHBut that's not all: you need to host this server somewhere and keep it running.

Accommodation and support: not all is rosy

Placing a server in a colocation center will cost approximately 2 439 UAH per monthThis is only because your equipment is located in a specially equipped room with guaranteed Internet and electricity.

In addition, you will need a system administrator who will monitor the server status. On average, this costs about 4,000 UAH per month.

Don't forget about the costs of maintenance, replacement of components and other unexpected expenses. Over the course of a year, this will amount to a significant amount.

Annual costs for your own server

Let's calculate the annual costs of maintaining the server:

• Colocation: 2,439 UAH × 12 = 29 268 UAH
• Administration: 4,000 UAH × 12 = 48,000 UAH

That is, in just one year, you spend 77 268 UAH to maintain the server. And this is despite the fact that your equipment may start to become obsolete in just a couple of years, and any serious breakdowns will lead to even greater costs.

Server rental: is the game worth the candle?

Now let's look at the option of renting a dedicated server from SIDATA. Here is an example of a tariff:

• CPU: Intel Core i7
• RAM: 64GB DDR4
• Disk: 2 x 512 Gb SSD
• Price: 3 950 UAH per month

What does this mean? You get fully operational equipment, you don’t have to worry about its placement, replacement of components and maintenance – SIDATA takes care of all of that. Moreover, the price includes support and a 24/7 server uptime guarantee.

Comparative calculations

Let's compare the annual costs of buying and renting a server.

• Purchase:
  One-time equipment costs - 29 276 UAH
  Annual costs for accommodation and administration - 77 268 UAH

  Total for the first year: 106 544 UAH

• Rentals:
  Monthly rental cost - 3 950 UAH
  Annual rent: 3,950 UAH × 12 = 47 400 UAH

As you can see, renting a server costs almost twice cheaper, than buying and maintaining your own equipment. And we haven't even taken into account possible breakdowns and obsolescence of the equipment in a couple of years.

Renting is not only about saving money

Why are more and more companies choosing to rent? Because it is not only more profitable, but also more convenient. Here are some reasons:

1. Flexibility. If your business needs more resources, you can easily upgrade to a more powerful plan. And if your needs decrease, you can reduce the amount of resources you rent.
2. Service included. In case of server rental, you don't have to worry about repairs or replacement of components. In case of breakdown, the provider promptly solves all problems.
3. Safety. SIDATA offers reliable data centers with a high level of data protection, which is especially important in our time when cyber threats are becoming increasingly dangerous.

What should you choose?

The question of whether to buy or rent a server really comes down to what your business priorities are. If you want complete control over the hardware, are willing to invest a large amount of money in purchasing it, and are willing to maintain it, buying a server may seem attractive. However, if flexibility, cost savings, and security are important, renting a server from SIDATA - this is the optimal choice.

In my opinion, renting is an ideal solution for companies that want to focus on business development rather than technical details. SIDATA takes care of all the equipment support, and you get a reliable and flexible server for your business.

What do you think is more profitable for your business - buying or renting?