Own server or cloud — what suits which business?

Updated: 9 October 2026

The decision does not depend on company size but on three things: whether an application requires a central installation, how large the files are that several people work on at once, and how good your internet connection is. If no application needs a server and there are no large files, the cloud is nearly always cheaper and lower-maintenance. As soon as a business application has to run centrally, you need a server — on site or rented in a data centre. A managed server costs from €89 per month with us.

„Cloud or own server" is often argued as a matter of belief and is in truth a question of applications. The infrastructure follows the software, not the other way round — and the third option, a rented server in a data centre, is regularly forgotten in this discussion although it is the right answer for many businesses.

Side by side

Criterion	Server on site	Cloud
Business software with a central installation	Runs — that is what a server is for	Only if the vendor offers a cloud edition
Large files in shared use	Fast, because it is on your own network	Depends entirely on the connection
Dependence on the internet line	Only for access from outside	Complete — without the line the business stops
Cost shape	Purchase plus ongoing support	Monthly per user, no purchase
Hardware failure	Your problem — hence monitoring and spares	The provider's problem, usually solved unnoticed
Access from outside	Needs VPN or a terminal server	From anywhere, with a second factor
Backups	Must be set up and verified	Must be set up too — the cloud is not a backup
Data location	In your own building, you know exactly where the data is	With the provider; you must clarify the location of the data centres and the data processing agreement
Power failure	The server needs an uninterruptible power supply, otherwise it goes down with the power	The data centre keeps running, but your workstations still need power and a connection
Growth and new users	Capacity has to be planned and purchased	Can be adjusted during operation
Rented server in a data centre (“cloud server”)	Not applicable, the hardware is not at your premises	Business software runs centrally, hardware and operation lie with the provider

The table scrolls sideways.

When an own server is right

An ERP, industry or CAD package requires a central installation.
Several people work simultaneously on large files — CAD, video, image archives.
The internet connection at the site is weak or unreliable.
A requirement demands that data be held on your own premises.

When the cloud is the better choice

Work is done with mail, office documents and files — with no centrally installed application.
People work from several locations or from home.
There is nobody in house who wants to look after hardware.
The business grows and shrinks in steps and the costs should follow.

The third route almost everybody overlooks

Between the two lies a rented server in a data centre: your business software still runs centrally, but without hardware on site, without power supply, without cooling and without worry about a failed drive. For businesses with an industry package that has to run centrally this is frequently the most sensible option. The condition is a reliable internet connection — from then on everything stands or falls with it, and that check belongs at the start of the deliberation, not at the end.

Guide prices, net plus VAT. As of: October 2026 · What does IT support cost?

Run it with your own figures In the cost calculator you enter workstations, servers and backups and see the monthly and annual totals — calculated from the same price list as here.

In Austria: data location and internet connection in rural Upper Austria

On data location: the GDPR does not require data to be stored in Austria; it applies across the whole EU. What matters is where a cloud provider actually processes your data and whether it offers a data processing agreement (Art. 28 GDPR). Ask where the data centres are located before you sign, and keep the answer in writing. On the connection: in rural Upper Austria, how fast the internet is depends on the individual address, not on the town. Anyone moving to the cloud should measure the connection during office hours beforehand, especially the upload, and think about what happens in an outage. A second connection, for example via mobile network, is the usual solution.

Since the NISG 2026, suppliers to larger organisations are more often asked where their data is stored, as explained in the article NIS2 and the supply chain. Florin Feier from Lenzing sets up servers and cloud connections by remote maintenance or on site, for example around Gmunden, Vöcklabruck, Salzburg, Linz and Wels. Backing up the data, whether on the server or in the cloud, is part of server and backup.

Frequently asked questions

Is the cloud safer than an own server?

Different, not categorically safer. Large providers run their data centres with an effort no small business can match — but a cloud account is reachable from anywhere and hangs on a password. A server on site is not reachable from outside at all unless you make it so, but it stands in a room nobody monitors. The decisive point is the same in both cases: two-factor sign-in and a separately kept, verified backup.

Do we need backups in the cloud too?

Yes. Cloud services protect against hardware failure, not against deletion, overwriting or encryption by malware. Deleted files and mailboxes sit in the recycle bin only for a limited time depending on the settings. Anyone holding records subject to retention there needs either matching retention rules or a backup of their own — from €49 per month with us.

What does moving from an old server to the cloud cost?

That depends on the data volume and on what has to come along. The effort rarely lies in the copying but in the tidying beforehand: which archives the business still needs, which are subject to retention, which can go. We bill such migrations by effort at €95 per hour and give an estimate in advance.

Can the two be combined?

That is in fact the normal case. Mail, files and collaboration in the cloud, the business application on a server. The only requirement is that the same data is not maintained in two places — duplicate filing is the most expensive item in any mixed environment, and it appears whenever nobody decides what belongs where.

What is a cloud server and how does it differ from the cloud?

A cloud server is a rented server in a data centre: you get your own server environment on which your business software runs, without hardware on site. A cloud application such as a mail or file service, by contrast, is a ready-made service that you simply use. For businesses with a central business application, the cloud server is the middle ground between the two. Managing a server costs €89 per month per server with us.

What happens if the internet connection fails in a cloud setup?

Then all work that cannot be done without a connection stops — with a pure cloud setup, usually all of it. The answer is not different technology but a reserve: a second connection, for example via mobile network, and a clear agreement on which work can continue offline. So check the connection before the move, not after.

How do I find out whether our business software can go to the cloud?

Ask the vendor in writing whether a cloud edition exists or whether the software may be run on a rented server. Some vendors allow only one of the two. Only then is a cost comparison worthwhile, because otherwise you end up with figures for a solution that is not possible at all.

Want to sort this out for your business? You can discuss your case on Server or cloud or put together an offer for Server or cloud.