A server replacement can turn into a €10,000 decision before anyone has asked the basic question: does the business actually need a server in the office? For a Malta SME, moving to the cloud can improve remote access, disaster recovery and resilience. It can also create a permanent monthly bill without solving the underlying problems.
When to move your server to the cloud depends on the applications running on it, how staff work, the quality of your internet connection and what the business needs to control directly. The right answer may be public cloud, a hosted server, a new local server or a hybrid arrangement.
#What does moving a server to the cloud actually mean?
“Moving to the cloud” can describe several different changes:
- Infrastructure as a service: Your virtual server runs in a provider’s data centre instead of your office.
- Software as a service: The server application is replaced with a browser-based service, such as Microsoft 365 or cloud accounting software.
- Cloud backup and disaster recovery: The production server remains local, but copies are stored off-site and can be restored elsewhere.
- Hybrid cloud: Some systems remain on-premises while others move online.
These options have different costs and risks. Replacing a file server with SharePoint is not the same project as moving an old accounting application to an Azure virtual machine.
Cloud adoption is already common in Malta. Eurostat reported that 74.9% of Maltese enterprises used paid cloud computing services in 2025, compared with 52.7% across the EU. The most common uses were email, office software and file storage. That does not mean every business should move every workload, but it does show that cloud services are no longer unusual for local companies.
#When should a business move its server to the cloud?
#1. The business needs reliable remote access
If staff work from home, visit customers or operate from more than one location, a local server can become a bottleneck. VPNs, port forwarding and office-dependent applications often create avoidable support issues.
Cloud-hosted applications allow authorised users to work from any location with an internet connection. Access should still be protected with multi-factor authentication, conditional access and role-based permissions. Moving the server without fixing weak access controls simply relocates the risk.
#2. The existing server is approaching replacement
A five- or seven-year-old server may need new disks, extended warranties, operating system upgrades and emergency repairs. Add the cost of a UPS, cooling, backup hardware and technician time, and the replacement decision becomes larger than the hardware quotation.
This is a good point to compare the total cost of ownership with cloud hosting. Include migration, licensing, support, backup, storage growth, internet upgrades and exit costs—not just the monthly virtual machine price.
For a realistic calculation, use:
Five-year cost = Hardware + licences + maintenance + power + backup + support + downtime risk
Compare that with:
Five-year cloud cost = Setup + monthly services + backup + storage growth + support + internet resilience
#3. Downtime would seriously disrupt operations
A failed local server can stop access to files, line-of-business applications, printing and shared databases. If restoring it depends on one person finding the correct backup, the business has a recovery problem, not just a hardware problem.
Cloud platforms can provide replicated infrastructure, snapshots and faster recovery options. They do not remove downtime automatically. A deleted file, compromised account or misconfigured firewall can still cause an outage.
Before migrating, calculate the business impact using this downtime cost calculation. A cloud project is easier to justify when the cost of one serious interruption is higher than the cost of proper resilience.
#4. The business is growing or opening another location
Cloud infrastructure scales more easily than buying another physical server every time headcount, storage or office locations increase. It can also support acquisitions and temporary projects without installing a complete IT environment at each site.
That flexibility has a price. Cloud resources must be monitored because unused virtual machines, oversized databases and excessive storage can continue generating charges.
#5. You lack the skills to maintain the server properly
A server that is patched irregularly, backed up inconsistently or protected by a single administrator is a business risk. Moving to the cloud may improve the technical foundation, but only if someone remains responsible for configuration, monitoring, security and recovery testing.
A provider supplies infrastructure. It does not automatically supply good decisions.
#When should a business keep its server on-premises?
Cloud is not always the sensible choice. Keeping a local server may be better when:
- An application requires extremely low latency or relies on local hardware.
- The business has an unreliable internet connection and cannot justify a second connection.
- A specialist application does not run correctly in a supported cloud environment.
- Data must remain inside a tightly controlled environment for contractual or regulatory reasons.
- The workload is stable, heavily used and already operates efficiently on owned hardware.
- The migration would involve rewriting an old application with little business benefit.
A local server still needs patching, monitoring, access controls, tested backups and a replacement plan. “We have always kept it here” is not an infrastructure strategy.
| Option | Best fit | Main advantage | Main drawback |
|---|---|---|---|
| Public cloud | Remote teams, growth, variable workloads | Flexible access and capacity | Ongoing costs and provider dependency |
| Local server | Stable workloads, specialist applications | Direct control and predictable performance | Hardware failure and office dependency |
| Hybrid cloud | Mixed requirements and gradual migration | Keeps sensitive systems local while adding cloud resilience | More complex to manage |
| SaaS replacement | Email, collaboration, accounting and standard business tools | Less server maintenance | Less control over features and data location |
The biggest cloud mistake is treating migration as a destination rather than a service redesign. If the same poorly secured application is moved unchanged to a virtual machine, the business may pay more without becoming safer.
#How to decide whether your server should move
Use this checklist before requesting cloud quotes:
- List every application, database, file share and device that depends on the server.
- Record who uses each system, from where and at what times.
- Check whether each application is cloud-compatible and supported by its vendor.
- Measure current CPU, memory, storage, backup and network usage.
- Calculate the cost of one hour, one day and one week of downtime.
- Compare five-year on-premises and cloud costs, including support and backups.
- Confirm where data will be stored and how it will be protected.
- Plan multi-factor authentication, least-privilege access and administrator controls.
- Arrange resilient internet connectivity before moving critical workloads online.
- Test migration, rollback and recovery before switching users.
- Set monthly cloud budgets, alerts and ownership for cost management.
- Review the design after 90 days and remove services nobody uses.
For backup planning, the cloud should not be treated as a substitute for a proper backup system. Follow the principles explained in this guide to set up a proper backup system, including separate copies and regular restore tests.
The practical answer for many Malta businesses is not “move everything” or “keep everything.” It is to move the workloads that benefit from remote access and resilience, retain systems that need local performance or control, and document how the two environments connect.
If you want to stop worrying about server infrastructure and cloud decisions, get in touch — we work with Malta businesses to make IT one less thing on your list.
