When to buy a new server

Of course, there will be small firms that are happy with the existing applications running on their servers and do not wish to move to the cloud. And for some, it's not worth it; the cloud can be expensive if you're not careful. With cloud you have to work out your monthly cost per user - then multiply by 12 to get the amount a year would cost. Therefore, short term, buying a new server for a single lump sum can be cheaper.

Also, if you don't have a dedicated IT manager and already have a contract with an IT company, you may not wish to complicate things by moving. You can use other, free, cloud services such as Dropbox and Box without moving your server over, too.

The verdict Replacing your server might seem like the cheaper option, but it will not always be right for small firms. For example, if you buy a server, you have to factor in that you are building a system that needs to adjust to all potential growth.