Comparison

Why renting a virtual server is more economical than a hardware server.

Electricity consumption. A hardware server can consume as much electricity per month as the price for renting a virtual server. Here is an example:
If a given server consumes 200W per hour, it will have consumed 4.8kW in one day or 144kW in one month. This, related to the current electricity prices in Bulgaria, makes BGN 34 a month for electricity consumption only. On the other hand, a virtual server with one CPU core, 2GB of RAM and a 10GB SSD costs BGN 30.83 per month, which is less than the cost of electricity.
(The comparison is quite relative, because each server consumes a different amount of electricity, but the parameters are chosen so that they are comparable)

Incidental IT support. Like regular computers and laptops, servers can broke too. The various components of each server are exposed to continuous load and may be damaged, overloaded, overheated and more. Each component in a server is essential for its continuous operation. If a component fails, the repair time can lead to significant losses for the company. Prices for IT support start from BGN 30 per hour, and in most cases one hour is extremely insufficient for diagnosis and repair. In many cases, however, the time for which the company's server is down is much more critical than the cost of repairing it. If the damage is more serious and there are components to be replaced, this can lead to costs comparable to renting a virtual server for months or even years. With a virtual server, the risk of such unforeseen costs is minimized. 

Uninterruptible power supply. Very often disturbances and anomalies occur in the electrical network - so-called electric shocks. They are very dangerous for the electronic components of any server and pose a huge risk of serious damage to the hardware. Unforeseen power outages result in improper server shutdown, which can lead to operating system failure and data loss. To avoid this, servers need quality Uninterruptible Power Supply (UPS). This leads to additional costs - one time for its purchase and periodic replacement of its batteries. Just as an example, the price of one of the most common batteries for UPS - 12v 7Ah is about BGN 30.
However, even having a UPS is not a complete solution to the problem of power outages. It is very often necessary to cut off the power for longer periods, either for intended or unforeseen reasons. In this situation, the UPS that powers the server will drain its batteries and turn it off. If the continuous operation of the server is critical (as are most servers) and can not tolerate downtime for several hours or days, it is necessary to have a generator to ensure the supply of electricity to the server. However, this is associated with high costs for its purchase, maintenance and maintenance costs of the generator. A generator must have a space that meets the operating requirements and many other requirements that many companies cannot afford.
When renting a virtual server, the problems and costs of unforeseen power outages disappear. The virtual server is always up and running online 24/7.
 

Guaranteed Internet. In many cases, a company server needs the Internet to perform its functions. It must be accessible any time and from anywhere. Whether it serves company documents, company website, video surveillance or other service. The cost of guaranteed internet access depends on speed, but prices in Bulgaria start at around $ 50 a month. In order for a company website to be accessible, you always need a guaranteed business internet, which is significantly more expensive than home internet. Internet access to the virtual server is always guaranteed and it is always online.

Specialized room. For the normal operation of a server it have to be in a special room that is air conditioned and maintains a constant temperature and humidity throughout all seasons. This is due to the fact that the servers emit a lot of heat. Such air conditioning requires an air conditioning system, and no matter how small it is, it works around the clock with the server and significantly increases the cost of electricity.
On the other hand, the room in which the server is located must be clean and free of any dust particles. This is impossible in an ordinary office, where you work and go in and out all the time. The presence of dust leads to its accumulation in the radiators, fans and connectors of the server, which in turn leads to its overheating or damage. Repair a dirty server is associated with a time during which it will not work.
Another issue that is often overlooked is the noise generated by a single server. Due to the need for constant cooling, server fans often run at high speeds and create a lot of noise. This would be extremely unpleasant for office workers. Causes decreased concentration and performance and subconscious fatigue. This is another reason for the server to need its own space, which increases the cost of rent or reduces the usable space in the company's office.
The virtual server does not make noise and does not take up space in the office. He is in The Cloud.

Scalability. The physical server is very small or not scalable at all. Changing the configuration of a physical server involves replacing or adding components. In most cases this cannot be done without stopping the server. Even if a temporary shutdown of a server is not critical, increasing resources is limited or impossible. Physical servers have limits and adding more processing power or memory is impossible. With the constant development of software products and the roles played by servers, increasing the server's resources becomes mandatory. The growth of a company is associated with hiring more employees, more visitors ot a web site or something else that requires an increase in the server resources. This is only possible with the virtual server. With the need of more resources that the impossibility for the physical server to handle, it must be replaced and a huge investment made again to buy new server and reinstall all the software. 

Transfer between servers. When there is more than one server in a company, the connection between them is extremely important. It must be fast and stable, without interruptions. In order to be such, the necessary communication equipment and cabling must be available. Such a technique is quite expensive and the investment in it can be compared with the rent of virtual servers for months. At the same time, the connection between the virtual servers is many times faster and more reliable.

Life expectancy. Computer hardware and servers as part of it have two types of life expectancy. One is the physical life expectancy. When used properly, it can reach ten or more years. On average, servers after the seventh year begin to give many defects and need to be replaced. But the more important part is the so-called moral life of computer technology. This is its ability to match modern software products and technologies. This life is about 2-3 years. After that, the computer or server continues to run, but it cannot keep up with new applications and user needs. 

Initial investment. The initial investment for server and UPS is comparable to the cost of a virtual server for years.

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