Decisions, Decisions: A Dedicated Server for Your SME?

by Paul Nicholls

Your SME is expanding, and the time has come for a dedicated server. You can either let the hosting provider do everything for you, or you can take the colocation route. Alternatively, you can bring everything in house. But which option is the most affordable?

The bottom line is that the price will depend on your application and user base requirements. Servers (a marriage of hardware and software) range between less than $1000 to more million. They are often categorized into traditional segments: workgroup (as many as 20 or 30 users), department (up to 50 users), midrange (several hundred users), and so on. But as affordable computing power increases, these distinctions are blurring.

Let's take entry-level and midsize servers as examples. An entry-level turnkey or out-of-the-box solution is quite straightforward. If it can do the job, it is cost-effective. Compaq's new NeoServer 150 comes ready to perform most functions that a small business needs: file sharing, automatic data backup, intranet, Internet access, and e-mail, with a built-in firewall. Its bundled Appliance Server Operating System (ASOS) is a Unix network OS custom-developed for the NeoServer 150, running on a Celeron 500 MHz processor with 64 MB RAM. Priced at $1499 ($1799 with a high-speed NIC for DSL or cable connection) NeoServer can support as many as 100 users.

Launched last month, Sun's new Netra X1 Server is ideal for do-it-yourselfers, and provides the basis for a wide range of SME applications. At $995 - the industry's lowest-priced UNIX/RISC server to date - it comes complete with the Solaris 8 OS, a 400 MHz, 64-bit UltraSPARC processor, 128 MB RAM, a 20 GB hard drive (and an optional second drive), and two built-in Ethernet ports.

If you need more internetworking muscle, however, you should consider a midrange server. Compaq's ProLiant ML330 series ranges from $1,356 (733 MHz processor and 64 MB RAM) to $1,981 (1 GHz processor and 128 MB RAM). These servers can also be leased for 48-month contracts, for $38.82 or $56.72 respectively. Don't forget the operating system: except for Red Hat Linux 7.0, which can be pre-installed for free, an OS for the ProLiniant line ranges from $799 for Win 2000 or NT, to as much as $12,999 for Netware 5.1 at 250+ users.

That's not a hidden cost ... and software purchase/licensing can also carry a substantial price tag. You will also face costs associated with configuring the system (additional memory, storage, etc.) and many sometimes-forgotten factors, such as service contracts, hardware installation, uninterruptable power supply, and so on.

If you want to bring a dedicated server in house, entry-level requirements carry a modest price tag - but don't forget the ISP! - while a more capable system will involve decisions, in-house expertise, and an investment of probably $10K or more. The suppliers will be happy to tailor a system directly to your needs, but a host's virtual solution may be the best choice if you're not quite ready to take that plunge.