We hear all about the cloud without end. For large corporations and individuals, using the cloud is a nearly flawless solution for storing and accessing apps and data from anywhere. But for small businesses, exclusive reliance on the cloud may not be the best solution. Here are some decision-making factors.

First, for all their differences in size, a huge corporation and an individual have a few things in common. Individuals and corporate employees can travel anywhere in the world and need to access apps and data wherever they are. The cloud works really well for this.

Although they operate on totally different levels, subscription-based apps such as Office 365 work really well for individuals and large corporations. Individuals can share the cost over a large user base, enabling each to benefit from constant upgrades that app publishers can update from central locations. Large corporations essentially do the same thing within their communities. They spread their cost over many users, and their tech teams control the software-update process to keep operations running as smoothly as possible.

A small business is different in one significant way. It’s essentially a self-contained community of users who use the same apps and data in one location. Yes, that business may have employees who log in ‘from remote locations, and yes, it may benefit from subscription-based application software. But we are likely talking about 10 to 100 people who are working with the same apps and data in a “bubble” known as the office. While small businesses combine to form a huge user base, each has its own specific needs, and our clients rely on us to customize systems to meet specific needs.

Therefore, the cloud may not be the solution, especially if you are a small business still working with a combination of a Windows 7 operating system and a Windows 2008 server, either in your office or in the cloud. We’re approaching a perfect storm with that combination because by January 2020, Windows will no longer support that OS and server platform. They’re too old and expensive for Microsoft to develop performance upgrades and security patches. You are being brought to a decision point.

We recommend that small businesses look at a cost/benefit analysis that covers five years to determine whether you upgrade your OS and server or migrate to the cloud. Five years is a good projected lifetime for a server and OS, it makes it easier to compare their cost with setting up and using a cloud-based system.

Setting up a server on the cloud involves costs, including the cost of server space and the cost to set it up to meet your needs. Once that’s done, your maintenance cost should be minimal. If your business runs Office 365, you already have a cloud presence through Azure, Microsoft’s cloud system. And while Azure automatically updates its server, it’s still a maintenance operation. All cloud servers need maintenance, and it’s something you pay for as part of your agreement.

Of course, using a cloud-based server requires access to a good internet connection, one with sufficient bandwidth for your needs and virtually perfect reliability. If you don’t have the bandwidth, your business won’t operate at its desired level. If your service goes down, you’re out of business until it’s restored.

If your computing needs are largely internal, you might be better served with your own server on a strong internal network, which can be hard-wired for better performance and security than a Wi-Fi network. You’ll incur purchase and set-up costs for your server, and you’ll need to install all updates in a timely manner. But your maintenance expenses should be relatively low once you’re up and running.

By setting up computers as terminals on a server and hard-wiring the network, you won’t need a router system or a big pipeline to the internet. You’ll also have fewer internet access points to secure, and that could help keep out intruders. Finally, depending on your employees, they’ll likely be less likely to wander off to other things on the internet.

Whichever way you go, you will have the most up-to-date servers, application software and security technology available at the time of installation. Cloud systems will update automatically, but your internal system can be configured to download and install updates.

With a January 2020 deadline, you have time to analyze your options and start moving along your chosen migration plan. We can help you analyze your business’s needs over the next five years and put a plan into action so you don’t miss a deadline or a beat. Call us – 973-433-6676 – or email us for an appointment.