Advice Centre

How to buy a server - a short guide for FDs

Servers are probably one of the larger IT investments you’ll make, and this guide is intended to show just where and how you should spend your money.

What is a server?

A server is typically any computer that provides services to more than one computer user. Some are passive – simply acting as a central repository for files and printers. In this role, the server won’t perform data processing, and probably won’t require any additional software installed on it (other than the operating system). Many servers, however, are active – running applications such as email systems, databases, financial applications, etc. Here, additional software will need to be installed, correctly configured and maintained.

Because servers “serve” a number of users – the impact following a breakdown or failure is far more significant than your average desktop PC. Staff cannot work, so remain idle whilst you still have to pay them. Add to that lost orders and lost customers, and you’ll soon understand that buying the right server, its correct deployment and maintenance is critical to most businesses.

Expect a life of at least three years for a typical server. Good ones will last longer but bear in mind that spares are more difficult to source once equipment is over five years old.

Key server hardware:

Manufacturers rarely quote an “on the road” price in their adverts for server hardware. What they do offer tends to be vastly underspecified and may require significant investment before it will actually work. A server costing under £1,000 may cost you over £10,000 to implement…

Processors are the devices that do the thinking inside a computer. The cost of an additional processor will vary greatly – typically hundreds of pounds, but can significantly increase the performance of a server and hence your staff.

Memory or RAM holds the information that a processor is thinking about at any particular time. If there isn’t enough, servers can stop working or (more likely) slow down as information is routinely copied back and forth to slower hard disks. This is a worthwhile upgrade to consider if you are running any of today’s “active” applications.

Hard drives are where your data is actually stored, and big capacity drives are fairly cheap these days. The complexity of modern software can make additional capacity extremely difficult and expensive to retrofit – so try to buy at least four times the capacity you currently use to reduce the chance of you needing to upgrade during your server’s lifetime.

SCSI (pronounced "scuzzy") controllers mean faster (but more expensive) hard disks, and hence a faster server. RAID controllers allow servers to tolerate certain hard drive failures. Dual Power Supplies and Hot Swappable components add cost, but mean that certain components can fail and be replaced whilst the server is still running. Higher end servers have most of these options built in, otherwise they can cost from a few hundred pounds a piece.

If you’ve read my articles on information security, you’ll know the importance of data backup. A middle of the road AIT (Advanced Intelligent Tape) drive with 100GB uncompressed capacity will probably set you back around £1,600.

It sounds fairly innocuous, but modern tapes are far removed from those of old. A pack of ten could set you back just shy of £1,000.

If you haven’t already got a UPS, now is the time to buy one. It’s not part of the server par se, but be aware that a large majority of data corruption and system failure still comes from unplanned power failures and spikes. A good UPS will instruct your server to shut down cleanly without intervention, thereby saving your company’s data if there is a problem. Budget £300 to £500 for a decent one. By the time you’ve added on all the extra hardware costs, your £1,000 server may have already cost you an extra £5,000 – and we haven’t even started on the software yet…

Key server software:

If you’re choosing to buy an operating system such as Microsoft Windows Server 2003, the best bet is normally to specify this at time of ordering. Manufacturers and hardware suppliers can supply “OEM” licensed software with a new PC or server at a significant discount over the normal “Full Packaged Product” price, say £700. The operating system will normally come bundled with at least 5 CALs (see below).

By this we mean software such as Exchange Server or SQL Server. OEM versions are again typically cheaper, and come bundled with at least 5 CALs (see below). Microsoft Exchange 2003 starts at around £900, and SQL Server at £1,100.

Server and backoffice software also requires additional licences according to the number of computers (clients) than will be connecting to your server. These are called CALs, and again should be ordered at the time of ordering the hardware for the keenest price. 20 CALs including Exchange might cost around £2,000.

Although you have bought the tape drive and the tapes, you’ll need some software to make it work. Windows includes a basic form of backup software, but third party software from Veritas (Backup Exec) or Computer Associates (BrightStore) is significantly better at backing up your data – and makes restoration far safer and more reliable as well. Bang goes another £500.

If you are running any form of specialist software – such as a database (SQL server, Oracle, etc) or Microsoft Exchange – the files which hold all the data are in constant use and cannot be backed up by conventional backup software. Backup agents are therefore required – additional “bolt-on” software – at up to £500 a piece.

It is recommended that you run some form of anti-virus software on your server – as it works in addition to the protection you have at the desktop level. Should someone manage to bypass (either by accident or design) the desktop software, the server will still be able to protect your documents and files.

If you run an email system such as Exchange, conventional anti-virus software won’t be able to see the email “inside” the email system. You will need an agent or compatible anti-virus software similar to a backup agent.

Data Migration Considerations

Unless you’re a new start-up, there is every chance you’ll want to copy data from an old server to your new one. This is generally where things start getting expensive, especially if you are migrating from a database or Microsoft Exchange server, or from a different version or product.

This type of project generally requires a reasonable amount of planning, particularly if downtime is to be avoided. They may also have to take place out of hours / at weekends to avoid business disruption – which further increases costs. If you have a 25 user network, using Exchange and SQL Server – data migration costs probably won’t be much below £5,000, and could be very much higher.

Recurring Costs:

Most servers include some form of warranty, but make sure you choose an option which suits your business, such as three years of on-site support with a four hour response. Most of the better manufacturers will let you extend the support contract on an annual basis once those years have been used up. When hardware repair means hardware repair Most warranties and hardware support contracts will repair your server should it go wrong to the point that it turns on – and no more. If a hard disk has failed, the contract will not typically include restoring data or operating system to make the server function normally again. Also, if a component has had to be replaced by something different which causes the operating system or application software to fail, once again, this will not be covered by your hardware contract.

Remember that some components (such as tape drives) may not be covered under the base warranty – and hence may incur additional costs, or may be subject to less stringent cover (e.g. one year next business day, etc).

Although you may expect help and advice from the manufacturer if you have a software problem, the chances are they will be of little use unless you opt for some form of additional software support contract. Server operating systems and applications are an order of magnitude more complicated than even five years ago – attempting to manage and repair these yourself without the appropriate skills or training is generally ill-advised.

Still using those backup tapes you bought five years ago? That could well be a false economy. Despite bold manufacturers claims about the life of tapes, their liability is limited to the £100 you paid for the tape if it fails – they won’t pay the half a million pounds you’ve just lost because you’re accounts system went down. Budget to replace your backup media every 12 months.

Just as with desktop anti-virus – you’ll need to maintain some form of subscription if you want to maintain the protection.

Top tips for buying a server

1. Always buy branded hardware

That big grey box which will eventually hold all of your company’s most critical information tends to fall into one of two camps: a branded system (HP, Dell, IBM, Intel, etc) or a component built system (just about everyone else). Branded systems tend to offer far better value for money, because:

2. Buy the best specification you can afford today

Today’s servers play an increasingly active role in the running of business applications. Most financial and CRM applications, for example, are powered by complex databases running on SQL Server and Oracle. Many companies use email systems such as Microsoft Exchange. This all makes upgrading a server far more complicated than upgrading a desktop PC. It will always cost significantly more in terms of downtime and consultancy fees to upgrade a server which has reached or neared its capacity – than it would have cost to buy the right capacity or options in the first place

3. Choose the right support

Buy hardware support direct from the manufacturer.  This usually guarantees availability of parts and appropriately trained staff to carry out the repairs – but they will only be able to fix the hardware, not the software. Choose a local IT company to install and maintain the software. They will have essential skills and real-world experience needed to take over where your hardware support contract ends.

© 2004, Bawden Quinn Associates Ltd