Should I keep servers on-site or use cloud services?

Updated

Deciding whether to keep your business servers on-site or move to cloud services is a common challenge for UK small businesses and SMEs. Essentially, this means choosing between hosting your data and applications on physical hardware at your premises or using remote servers managed by a cloud provider. Both options have pros and cons, and the right choice depends on your business needs, budget, and risk tolerance.

Why this matters for UK SMEs

Your choice impacts several critical business areas. On-site servers can offer more direct control and may suit businesses with specific compliance or data residency needs. However, they require ongoing maintenance, physical security, and reliable backup systems. Cloud services, on the other hand, provide flexibility, easier scalability, and often better resilience against hardware failure. But they depend on internet connectivity and require careful vendor management to ensure data protection and compliance with UK regulations like the Data Protection Act 2018 and UK GDPR.

Downtime or data loss can severely disrupt operations, harm staff productivity, and damage customer trust. For example, a local accounting firm with 50 staff might keep servers on-site to control sensitive financial data. If their server fails without a robust backup and disaster recovery plan, they risk losing client records and missing deadlines, which could lead to regulatory fines and reputational damage. A managed IT provider could help by implementing redundant systems, regular backups, and secure remote access, or by advising on a hybrid approach that combines on-site and cloud resources.

Practical checklist for your decision

  • Ask your IT provider: What are your backup and disaster recovery procedures? How quickly can you restore services after an outage?
  • Check compliance support: Does the solution help meet UK GDPR and Cyber Essentials requirements? Are data locations and access controls clearly documented?
  • Review service level agreements (SLAs): What uptime guarantees are offered? Are there penalties for downtime?
  • Assess security measures: Is multi-factor authentication (MFA) enforced? How is physical access to on-site servers controlled?
  • Evaluate scalability and costs: How easy is it to add capacity or services? What are the ongoing maintenance or subscription fees?
  • Internal checks: Do you have an up-to-date inventory of hardware and software? Are backups tested regularly? Who has administrative access?

Next steps

There is no one-size-fits-all answer, but a trusted managed IT provider or advisor can help you weigh the benefits and risks specific to your business. They can conduct a thorough review of your current setup, compliance needs, and growth plans to recommend a tailored approach—whether that's on-site servers, cloud services, or a hybrid model. Taking a measured, informed approach will help protect your data, support your team's productivity, and maintain your customers' confidence.

Tools & software for this topic

Not ready to change IT providers yet? These buying guides walk through tools your team can use to improve things on your own.

We may earn a small commission if you sign up with any of these tools and services, at no extra cost to you. We only feature tools that are appropriate for British businesses like yours.

Tools you can try right away

These tools line up with the topics in this guide and are commonly used by small and mid-sized businesses.

Acronis Cyber Protect

Best for: Best for UK SMEs seeking combined backup and malware protection in one solution

Integrated backup and cybersecurity for reliable data protection

Acronis Cyber Protect combines backup, disaster recovery, and cybersecurity features in a single platform. It is commonly used by organisations that want to reduce risk with integrated malware defence alongside data protection. Many find it useful for managing backups and security from one console.

View Acronis Cyber Protect plans

Backblaze Business Backup

Best for: Best for UK SMEs seeking simple, cost-effective cloud backup with unlimited data

Reliable cloud backup for straightforward data protection and recovery

Backblaze Business Backup is commonly used by small businesses for easy, unlimited cloud backup. It offers straightforward setup and predictable pricing, helping organisations protect data without complex management or hidden fees.

View Backblaze Business Backup plans

Box Business

Best for: Best for UK SMEs needing combined backup and team file access

Secure cloud backup with easy file sharing and collaboration

Box Business is commonly used by SMEs to back up data while enabling secure file sharing and collaboration. It offers strong integration with popular productivity tools and supports compliance with UK data protection standards.

View Box Business plans

Carbonite for Business

Best for: Best for UK SMEs needing straightforward cloud backup with easy restore

Reliable cloud backup with flexible recovery options for SMEs

Carbonite for Business is commonly used for cloud backup and disaster recovery by small and medium-sized organisations. It offers automated backups with flexible restore options, helping reduce data loss risk and maintain business continuity.

View Carbonite for Business plans

CrashPlan for Small Business

Best for: Best for UK small businesses needing straightforward, continuous backup with easy recovery options

Reliable cloud backup with continuous data protection for SMEs

CrashPlan for Small Business offers continuous cloud backup designed for small organisations. It is commonly used to protect business data with automatic backups and simple restore processes, helping reduce risk and downtime.

View CrashPlan for Small Business plans

Dropbox Business

Best for: Best for SMEs needing straightforward cloud backup with team collaboration features

Secure cloud backup with easy file access and sharing for teams

Dropbox Business is commonly used for cloud backup and file sharing within small to medium UK businesses. It offers reliable file syncing across devices and simple collaboration tools, helping teams keep data backed up and accessible without complex setup.

View Dropbox Business plans

Need hands-on help?

If you’d rather have a provider handle this for you, here are firms that work on Servers & Infrastructure in United Kingdom.

Top firms for Servers & Infrastructure
Novatech
Portsmouth, England

Overview

Novatech is a managed IT services provider based in Portsmouth, England. This IT support company focuses on delivering practical solutions for small and medium-sized enterprises, charities, and education sectors across the UK. They specialise in computer building and IT support, aiming to enhance the operational efficiency of their clients.

This MSP helps clients by simplifying complex processes and offering clear guidance in selecting technology tailored to their needs. With a commitment to professionalism and organisation, Novatech ensures reliable service delivery, timely product availability, and customisable options without unnecessary software bloat. They adhere to UK GDPR and other relevant security standards to maintain data protection and privacy.

What clients say about this company

Clients appreciate Novatech for their clear communication and efficient processes. Customers have found it easy to understand their offerings, and they often receive products ahead of schedule, along with helpful support from knowledgeable staff during the purchasing process.

Feedback highlights the professionalism and expertise of the team at Novatech. Customers have noted the staff's ability to provide tailored recommendations and their efficiency in resolving issues, fostering a trustworthy relationship that encourages long-term partnerships.

4.2★
XPS Solutions Ltd
Hessle, England

Overview

XPS Solutions Ltd is a managed IT services provider based in Hessle, England. This IT support company focuses on delivering comprehensive IT solutions to small and medium-sized enterprises (SMEs), charities, and professional services across the UK. They aim to assist clients in improving their IT infrastructure and ensuring smooth operations.

This MSP offers a range of services, including IT support and WiFi management, tailored to meet the needs of their clients. Their commitment to effective communication, quick response times, and problem resolution underlines their reliability. By adhering to standards such as UK GDPR and Cyber Essentials, they ensure that their solutions are secure and compliant.

What clients say about this company

Clients appreciate the prompt and effective support provided by XPS Solutions Ltd. Many have praised the team's professionalism and their ability to resolve issues rapidly, demonstrating a strong commitment to customer satisfaction. Their staff are often described as helpful and knowledgeable.

Feedback highlights the company's emphasis on empathy and clear communication throughout the support process. Clients report feeling reassured by the team's dedication to solving problems efficiently and providing excellent service, which effectively reduces stress and builds confidence in their IT systems.

5.0★
Arden IT Ltd
Nottingham, England

Overview

Arden IT Ltd is a managed IT services provider based in Nottingham, England. This IT support company focuses on delivering reliable technology solutions to small and medium-sized enterprises, charities, and educational institutions across the UK. They are dedicated to helping clients with a range of IT needs, from hardware repairs to software updates and network management.

This MSP offers services such as virus removal, device upgrades, and Wi-Fi setup, ensuring that clients have the support needed to maintain efficient operations. With a commitment to professionalism and expertise, Arden IT Ltd prioritises clear communication and effective problem-solving, aiming to enhance their clients' overall experience with technology.

What clients say about this company

Feedback from clients frequently highlights the quick response times and impressive knowledge of the team at Arden IT. Many appreciate how friendly and professional the staff are, making clients feel comfortable while their issues are resolved efficiently. This level of service fosters trust and satisfaction.

Clients have also expressed their gratitude for the good value offered by Arden IT, often mentioning the affordability coupled with high-quality service. The company has successfully managed repairs and updates for various devices, leaving many clients feeling that they received excellent support and advice.

5.0★
Precept IT
Belfast, Northern Ireland

Overview

Precept IT is a managed IT services provider based in Belfast, Northern Ireland. This IT support company focuses on offering reliable technology solutions to small and medium-sized enterprises (SMEs), charities, and educational institutions within the UK. Their primary services include IT support and email migration, which they carry out efficiently and with a strong emphasis on communication.

This MSP is committed to helping clients navigate their IT challenges with a responsive and friendly approach. The team at Precept IT is known for their quick response times and willingness to assist users at every step, ensuring that clients feel supported and informed during projects. They adhere to industry best practices, including UK GDPR and Cyber Essentials standards, to promote security and reliability in their services.

What clients say about this company

Clients often highlight the exceptional responsiveness and knowledge of the team at Precept IT. Many users appreciate the friendly and helpful nature of the staff, remarking that they work patiently to find solutions for any difficulties that arise. This support fosters a trusting relationship with clients, who feel confident in the services provided.

The company receives positive feedback for its project delivery, particularly during tasks such as email migrations. Clients value being kept informed throughout the process and praise the proactive support offered by the team. Overall, the emphasis on effective communication and empathetic service ensures high satisfaction among users.

5.0★
The IT Guy Bournemouth
Bournemouth, England

Overview

The IT Guy Bournemouth is a managed IT services provider based in Bournemouth, England. This IT support company focuses on delivering practical solutions to meet the needs of local clients. They typically work with small to medium-sized enterprises, charities, and educational institutions, ensuring these organisations receive reliable and efficient support.

This MSP offers a range of services, including tech support, which is notable for its emphasis on effective communication and transparency. They have a strong commitment to security, providing assistance that helps clients safeguard their information and resolve technical issues swiftly.

What clients say about this company

Client feedback highlights the consistent and clear communication from this IT support company, with many appreciating the friendly and knowledgeable team. Customers have noted how updates during service are frequent and helpful, contributing to a positive overall experience.

Clients have also expressed satisfaction with the resolution of technical issues, often praising the professionalism of the staff. The commitment to honest advice and problem-solving is a recurring theme, leading to a high level of trust in the services provided.

5.0★
Anglian Internet Ltd
Norwich, England

Overview

Anglian Internet Ltd is a managed IT services provider based in Norwich, England. They focus on delivering reliable IT support and tech solutions for various clients across the UK, including small to medium-sized enterprises, charities, and educational institutions. This IT support company aims to enhance operational efficiency and ensure smooth technology performance.

This MSP offers a range of services such as IT support, technical assistance, and WiFi solutions. They are known for their transparent communication and commitment to resolving issues promptly. With a focus on customer satisfaction, they work diligently to meet the unique needs of each client while aligning with relevant regulations and best practices.

What clients say about this company

Clients often commend this managed IT services provider for their helpful and approachable staff. Many appreciate the efficient service they receive, noting quick resolutions to technical problems without excessive jargon. Positive feedback highlights the company's honesty regarding costs and necessary repairs.

Customers have expressed satisfaction with the swift turnaround times for repairs and the overall quality of service. Several clients have commented on the personal touch offered, feeling valued and well-informed throughout their interactions. The consistent praise for their service indicates a strong commitment to customer care and support.

4.5★
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