I'm reaching out to the community for some advice because our non-profit is looking to move away from our on-prem VMware setup. We have about 200 office users who mainly rely on a single server running Windows Server 2019 for file sharing (approximately 500GB of data) and Active Directory, which is synced with our Office 365 tenant. With the recent high renewal costs due to the VMware and Broadcom situation, I'm exploring whether we really need this single server anymore.
It seems like now might be a good opportunity to transition from a hybrid setup to a more cloud-based solution, even if that process will take some time. We're mainly using Microsoft E1 and E3 licenses, so I'm looking at options like:
- Switch to Hyper-V (or another hypervisor)
- Move to Microsoft SharePoint for file sharing, though I know there's a learning curve involved
- Set up a private cloud
- Use Azure File Share
- Consider a NAS solution
- Any other recommendations?
As a non-profit, budget constraints are a major concern, especially since discounts on hardware and licensing are minimal. I'm keen on giving my coworkers as smooth an experience as possible since they already face enough challenges in the social work sector. Ideally, I want a solution that closely mirrors a traditional file share experience on Windows. I'm also inclined towards Microsoft solutions given our current setup. I'd love to hear from other sysadmins about their experiences moving away from on-prem setups!
5 Answers
Having just transitioned to SharePoint from a traditional on-prem file share last month, I can tell you it depends on your specific content needs. For documents, photos, and standard files, SharePoint works fine. But keep in mind that you'll need to train users on how to access files through both the website and Windows Explorer for optimal use. Also, be careful not to sync too much with OneDrive, as it can slow down with larger data sets. Once the learning curve is handled, users can actually access files remotely without a VPN, which is a huge perk!
Why even stick with VMware for such a simple two-VM setup? Hyper-V could definitely cover your needs without the extra costs.
We’ve moved to SharePoint while also using Azure Files for one department. The biggest lesson we've learned is managing OneDrive syncs carefully; limiting what people sync has made a huge difference. We just used the MS migration tool for SharePoint, and it worked like a charm!
Honestly, I wouldn't overthink this too much. It's a good idea to separate functions, so consider having a dedicated file server distinct from your Domain Controller. You could implement a two-VM Hyper-V setup; that's more than sufficient for a basic use case like yours. Just take it step by step as you transition!
Completely agree with this. Keeping roles distinct is key!
Glad we're on the same page!
Agreed, SharePoint isn’t too tough to learn, and you’re already paying for it. Since you're AD-synced, you’re nearly set to move! There's no need to invest in a new server right now.

I think you could go even further. A dedicated NAS, like a Synology, combined with a separate AD server is a solid approach. If your main role is just as a Domain Controller, virtualization might not even be necessary.