Cost of a Server

Do you wonder about how much a server costs? Servers are a must-have for many businesses, especially in this technological era. Starting price on a server these days can be a few thousand dollars to start, but could be much higher depending on your company requirements.

At Sirius Office Solutions, our clients are often surprised to hear the minimum price of a server. You are definitely not alone in your astonishment. We will begin to answer the common questions we get when it comes to a server’s price.

By the time you are done reading this article, we hope that you will have a foundational understanding on why servers cost so much and hopefully help you determine the best course of action on whether you need a server for your business.

What Makes Up the Cost of a Server?

When we are asked to quote out a server for a client, we start by designing the solution to our customer’s specifications.

It can be difficult to provide a proper estimate on a server’s price because it can vary based on many factors. Typically, there are a few factors that determine the server cost.

  • What is the purpose of this server?
  • How many end users will the server support and/or applications hosted by the server?
  • What specific components may be needed for your server for optimal performance?

For the purpose of the server, typically the server may be used for application hosting, email, file storage, windows domain controllers and more. You may need a physical server or multiple physical servers, and preferably we can help you manage and to virtualize your servers to reduce the physical hardware footprint.

The end user count will be a necessity and help guide the conversation around server specifications and licensing.

These are some of the main factors that will impact the cost of the server significantly.

Server Cost Components

A minimum of $5000 entry fee for a server is a lot of dough. Let’s see exactly what we mean when we give these types of estimates…

There are a few main components in a server.

  • Server Case – Included in price.
  • Processor – Around $1000 minimum.
  • RAM – Usually about $500 for a standard setup.
  • Drive – Close to $250 for one drive.
  • Power supplies – Usually around $100 each.
  • Operating System
    • Windows Server – $800-$4000 per server

Server Case

The first main part of a server is the case. This is determined by the physical space you will be placing the server in. You will want to choose between a tower, a rack or a blade server.


The next part of a server is the CPU or Processor. This will determine the processing power of this machine.

There is a processor in every computer, but the CPU we are talking about is made specifically for a server.

Before choosing a processor, we need to know if you need one or two. We should also know how many cores are needed per CPU.


RAM is a very important part of your system. These memory chips allow for multiple virtual servers to run and more people to use the same server at the same time.

Hard Drives

Server storage and hard drives is what allows you to store data on your server. It is a critical component of your system and these days with the price so low you can store a huge amount of information for cheap. These days, a fast and modern Solid State Disk is a must. However, you can still use the traditional spinning disks for a lower cost.

Power Supplies

For a server, we always advise using dual power supplies, which will allow you to keep working even if one fails.

Operating System

In a standard small to mid-size business environment, you will see a Windows Server made for the needs of most applications. However, if you are hosting a web or specific application server, you may need to go the Linux route. There are multiple options when it comes to each, so discussions about your server environment size and requirements is in order.

Set Up of Your Server

Setting up a server can be a pretty complicated task. Most companies will hire an expert to take care of this for them. If you want to set up the server on your own, you can go through the following to try it on your own. If you are looking at server costing, you are going to want to factor in the hardware and software installation fees as well.

Physical Installation

First step, you will have to physically place your server in the physical environment. If your server is rackmount-able you will need to add the rails to the server, and slide it into an empty spot on your rack. You may need to screw in a few screws to the rack, depending on your setup. If it is a tower server, You just need to find a nice spot out of the way of the rest of the office. Preferably somewhere clean and where the server can be undisturbed. Usually, these devices can get pretty loud, so I suggest not placing this in your CEO’s office.

Software Installation

After you have your plan in place for the server, you should be able to follow steps for the installation process. If you did not add the Operating System to the server price at your initial purchase, you will have to factor in the software price and installation into the cost. First step will be putting the physical media into the server, and following the steps on screen to fully install the OS. After this is complete, you will want to set up the applications and/or server roles on the server as required. Likely you will need a pro to do this part, unless you have experience of setting this up on your own.

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