I've been working in managed services for a long time and most of my clients are small businesses with around 20 workstations. I recently encountered a company that has a 2019 server and twenty workstations. A competitor is suggesting they migrate to the cloud using SharePoint and OneDrive. Is it common for small businesses to make this shift and eliminate their on-premises servers altogether? What happens to older applications that are client-server based?
5 Answers
It's important to consider the specific needs of the business. Some companies see the cloud as a chance for flexibility and scalability, especially post-COVID. Those that require specialized software tend to stick around with on-prem solutions a little longer.
Five years ago, migrating to the cloud seemed enticing, but with recent outages and the rising costs closer to on-prem solutions, many are hesitant. However, cloud backup can still be a good option without fully committing to a cloud setup.
Yeah, I’ve adopted a dual backup strategy. One copy is stored on an external hard drive and the other one is backed up in the cloud for safety. It just gives peace of mind.
In my experience, many small businesses find using Microsoft 365 and Entra licenses to be more cost-effective than maintaining on-prem infrastructure. It really comes down to their specific needs, but for a small team, the hybrid approach can work. They could keep cloud for emails and smaller docs while using on-prem for large file storage.
Exactly! Most of my clients are already using M365 for emails. The hybrid systems are tricky, especially for smaller businesses without dedicated IT. Maintaining both systems can become a hassle and pricey.
I think a lot of small businesses are considering cloud migration, but the costs can catch them off guard. Some they might face large bills once they dive into cloud services. It's often a surprise to them how high those monthly fees can get! Particularly if they’re relying heavily on services like SharePoint and OneDrive without a clear plan.
You're right about those surprises! A few clients I know ramped up their use but then got hit with a bill that was shockingly high. A company of that size could likely use the Office 365 they’re already paying for and transition well, but they need to be careful about replacing mapped drives with OneDrive.
Overall, most small businesses I’ve seen have migrated or are in the process of moving to the cloud. They're starting with essentials like email. However, apps designed for on-prem aren’t fading away instantly. Legacy systems complicate the transition, so those need careful planning before migrating.
True! I’ve noticed that people are still running those legacy applications while wanting to embrace newer cloud features. They need a balancing act to ensure a smooth transition.

Interesting point! Many businesses were forced into cloud solutions during COVID, and it's quickly becoming a new standard, especially in industries that really need agility like healthcare or manufacturing.