05-13-09 | Blog Post
What’s the difference between a managed dedicated server and a leased server? The short answer: A lot. It’s like the difference between leasing a ship and taking a cruise. The difference isn’t just between a raw component and a complete service, it also impacts the total cost of total cost of ownership (TCO).
The e-Tips article gives 7 tips for how you can cut costs by leveraging a dedicated server solution over leasing a server. The 7 tips discuss set up costs, physical security, quality of the Internet connection, Internet security, back up costs, power and monitoring.
A good way to net out the difference between a leased server and a dedicated server is shown in the following table:
|Summary||Leasing Server||Online Tech
|Cost of Server||$ 2,000||$ 0|
|1 year Operating Expenses||$ 12,100
(does not include engineer time)
|Support Engineer (patches, maintenance etc.)||$ 3,600
(3 hours / month $100/hr)
|Total 1 year expense||$ 17,700||$ 6,000 (average $500/month for mid-level fully managed server)|
|Total 3 year expense||$ 36,900||$ 18,000|
Dedicated servers come at a premium over a raw leased server, but when you add up all the costs involved, the total cost of ownership can be a lot less with a dedicated server.