It’s not exactly news that running a web or application server in-house is an expensive proposition for any company, and especially for resource tight SMBs and startups. Hardware and software costs, hiring and/or training personnel to deploy and manage the server, and bandwidth are minimum requirements, and cutting corners in any of these areas courts disaster. Despite an intimidating high cost of entry, deploying an in-house server is still desirable for a number of reasons, most centered around security concerns or flexibility needs. Those advantages come with an element of risk, and businesses who don’t carefully consider the hidden costs in running a web or application server in-house could find any benefits negated in revenue draining budget shortfalls.
Hardware costs should be straightforward to identify, although deciding whether to purchase or lease is much less cut and dry. Purchasing hardware outright may cost less over time, but it also depreciates quickly and businesses can find themselves still paying off equipment that is losing performance ground to newer deployments. Leasing can offer more flexible options, but that typically comes at a premium price.
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