Can a small business use a virtual server instead of physical?

Updated

Many small businesses today are exploring virtual servers as an alternative to traditional physical servers. Simply put, a virtual server is a software-based server that runs on a physical server but operates independently, allowing multiple virtual servers to share the same hardware. This means your business can have server capabilities without owning or maintaining bulky physical equipment onsite.

Why Virtual Servers Matter for Australian Small Businesses

Choosing between virtual and physical servers affects your business's reliability, security, and flexibility. Physical servers require upfront investment, ongoing maintenance, and dedicated space, which can be costly and complex for smaller teams. Virtual servers, often hosted in the cloud or at a data centre, reduce hardware management and can scale up or down as your business needs change.

However, virtual servers depend on stable internet connections and trusted providers. If the virtual server goes offline or experiences issues, your business could face downtime, disrupting staff productivity and potentially impacting customer trust. Additionally, data stored virtually must be protected against cyber threats and comply with Australian privacy standards, especially if you handle sensitive customer information.

A Typical Scenario: How a 50-Person Business Benefits from Virtual Servers

Consider an Australian marketing agency with 50 employees. They previously managed a physical server onsite for file sharing and client databases. The server required regular IT support, hardware upgrades, and backup management, which distracted their small IT team from other priorities.

By switching to a virtual server hosted by a reputable managed IT provider, the agency gained several advantages: automatic backups, easier remote access for staff working from home, and faster recovery options in case of hardware failure. Their IT partner handled security updates and monitored server health 24/7, reducing downtime risks and freeing internal resources to focus on business growth.

Checklist: What to Consider When Evaluating Virtual Servers

  • Ask your IT provider: Where is the virtual server hosted? What security certifications does the data centre have?
  • Understand service levels: What uptime guarantees are included? How quickly can issues be resolved?
  • Backup and recovery: How often are backups taken? Where are backups stored? Can you access backups independently?
  • Data privacy compliance: Does the provider comply with Australian privacy laws and standards?
  • Access controls: Who can access the server and data? Are multi-factor authentication and strong password policies enforced?
  • Scalability: Can the virtual server resources be adjusted easily as your business grows or changes?

Next Steps

Virtual servers can be a practical, cost-effective option for many Australian small businesses, but they require careful planning and a trusted IT partner to manage risks and ensure smooth operation. Speak with a managed IT services provider who understands your business needs and can help you evaluate whether a virtual server aligns with your goals, budget, and compliance requirements.

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 Australian 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 SMBs wanting 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 often used by businesses that want to reduce risk with integrated malware detection alongside data protection.

View Acronis Cyber Protect plans

Backblaze Business Backup

Best for: Best for small businesses needing straightforward, unlimited cloud backup with easy recovery

Reliable cloud backup for continuous data protection and recovery

Backblaze Business Backup offers simple, unlimited cloud backup designed for small to mid-sized businesses. It is often used for continuous data protection with easy file restoration and minimal setup, helping reduce downtime and data loss risks.

View Backblaze Business Backup plans

Box Business

Best for: Best for SMEs needing integrated backup with team file access and collaboration

Secure cloud backup with flexible file sharing and collaboration

Box Business offers cloud backup combined with file sharing and collaboration tools. It supports secure access and version control, helping teams work together while protecting data. Many customers use it to streamline backup and file management in one platform.

View Box Business plans

Carbonite for Business

Best for: Best for Australian small businesses needing straightforward cloud backup with easy restore

Reliable cloud backup with flexible recovery options for SMEs

Carbonite for Business offers cloud backup solutions designed to protect business data with flexible recovery options. It is often used by SMEs looking for reliable offsite backup managed through a simple interface.

View Carbonite for Business plans

CrashPlan for Small Business

Best for: Best for Australian small businesses needing continuous backup with easy file recovery

Reliable cloud backup with flexible restore options for SMEs

CrashPlan for Small Business offers cloud backup designed for small teams, focusing on continuous data protection and straightforward recovery. It supports multiple devices per user and provides flexible restore options, helping businesses reduce downtime and data loss risks.

View CrashPlan for Small Business plans

Dropbox Business

Best for: Best for small teams needing straightforward cloud backup with integrated file collaboration

Secure cloud backup with easy file access and sharing

Dropbox Business offers cloud backup combined with file sharing and collaboration tools. It is often used by small businesses that want reliable backup alongside easy access to files across devices and teams.

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 Australia.

Top firms for Servers & Infrastructure
New Domain Services
Melbourne, Victoria

Overview

New Domain Services is a managed IT services provider based in Melbourne, Victoria. They focus on delivering reliable IT solutions for businesses of various sizes, particularly benefiting small to medium enterprises that depend on effective technology. This IT services company aims to enhance operational efficiency, ensuring clients can focus on their core activities without worrying about their IT challenges.

Their offerings include a range of services such as network management, cybersecurity, and cloud solutions. They strive to provide proactive support and timely assistance, although they have faced challenges with their offshore support structure. Despite some recent feedback from clients regarding support responsiveness, New Domain Services remains committed to helping businesses achieve their IT goals.

What clients say about this company

Clients have shared mixed experiences with this managed IT services provider. While many have praised their solid service in the past, recent comments highlight concerns about the support provided by offshore teams. Some clients express frustration over long wait times and a lack of effective assistance when issues arise.

Overall, many long-time customers note a decline in the quality of support over the last year, compared to previous years of satisfactory service. This shift has led to disappointment, as clients seek reliable and knowledgeable help for their IT needs. Nonetheless, New Domain Services still has a loyal customer base that appreciates their longstanding dedication to service.

4.6★
Office Solutions IT Perth
Osborne Park, Western Australia

Overview

Office Solutions IT Perth is a managed IT services provider based in Osborne Park, Western Australia. They focus on delivering high-quality IT support, cyber security solutions, and proactive help desk services to small and medium-sized businesses. By prioritizing customer needs, they ensure that their clients can operate smoothly and securely.

With a strong emphasis on responsiveness and security, this IT services company stands out for their commitment to keeping clients' systems running efficiently. They understand that technical issues can arise unexpectedly, so they offer quick and reliable support. Their proactive approach allows them to identify and address potential problems before they affect operations.

Typical clients include small business owners who require dependable IT support and want to ensure their data is secure. Office Solutions IT helps these clients by offering tailored services that address their specific needs. Through their expertise, they enable businesses to focus on growth while leaving IT concerns in capable hands.

What clients say about this company

Clients appreciate the responsiveness and support provided by this managed IT services provider. Many have shared that clients can rely on Office Solutions IT to be there when urgent issues arise, receiving quick responses and effective solutions. The team's willingness to offer thoughtful suggestions further enhances the service experience.

The proactive support offered by Office Solutions IT has received high praise from their clients. They go beyond meeting basic needs by continuously raising standards and making improvements. This commitment to quality helps businesses feel secure and supported in their IT environment.

Clients also value the empathy and understanding shown by this MSP. Many find them to be a reliable partner who delivers high-quality support while also being cost-effective. With a strong focus on security, clients feel confident knowing that their IT systems are managed by professionals who care about their well-being.

4.9★
H&M Professional Computers
Glenroy, Victoria

Overview

H&M Professional Computers is a managed IT services provider located in Glenroy, Victoria. This IT services company specializes in a range of solutions including computer repairs, data recovery, and antivirus services. They focus on delivering efficient support to individuals and small businesses, ensuring that their technology runs smoothly.

This MSP helps clients by providing timely assistance and expert advice tailored to their needs. Their friendly team is dedicated to resolving issues quickly and professionally, which builds trust among their clients. H&M Professional Computers is known for its commitment to high-quality service and effective problem-solving, making them a dependable choice in the local IT landscape.

What clients say about this company

Clients frequently commend this IT services company for their professionalism and quick response times. Many have shared positive experiences regarding their repair and maintenance services, appreciating the fair pricing and attentive approach. Feedback indicates that customers feel respected and valued during their interactions with the team.

Customers have also highlighted the effective communication and support they receive throughout the service process. Many clients express satisfaction with the efficient resolutions of their issues, often noting the timeliness and quality of the repairs. Overall, this MSP has built a reputation for delivering reliable and trustworthy IT services in their community.

4.8★
Innovative Computer Solutions
Mayfield, New South Wales

Overview

Innovative Computer Solutions is a managed IT services provider located in Mayfield, New South Wales. They specialize in delivering tailored IT solutions for both businesses and individuals, focusing on enhancing efficiency and connectivity. Their team is dedicated to providing support that prioritizes client needs, ensuring that technology works seamlessly for everyone.

This IT services company is known for its reliability and thorough approach to IT challenges. They offer a variety of services, including remote access support, WiFi setup, and ongoing maintenance. By understanding the unique requirements of their clients, they are able to implement effective solutions that empower users and improve overall productivity.

What clients say about this company

Clients appreciate the professionalism and thoroughness of this MSP, noting their friendly communication and supportive service. Many have shared positive experiences about prompt problem-solving, including successful diagnosis and resolution of technical issues. This attentive approach has led to strong recommendations from satisfied customers.

The empathy shown by their team sets them apart. Clients have highlighted how staff members, like Dan, provide on-the-spot support and valuable insights beyond immediate IT concerns. This focus on customer care, combined with convenient remote assistance, reflects a commitment to making technology accessible and hassle-free.

4.9★
Kalgoorlie IT
South Kalgoorlie, Western Australia

Overview

Kalgoorlie IT is a dedicated managed IT services provider located in South Kalgoorlie, Western Australia. They serve a diverse range of clients, from small businesses to larger organizations, ensuring that each client receives tailored IT support. This IT services company focuses on building strong IT infrastructure, delivering solutions that enhance operational efficiency and reduce downtime.

With a team of knowledgeable and experienced professionals, this MSP prioritizes customer satisfaction and reliable support. They are known for their commitment to professionalism and respect, fostering a collaborative environment that allows clients to feel confident in the services they receive. By addressing both technical and budgetary needs, Kalgoorlie IT helps clients succeed in their IT ventures.

What clients say about this company

Clients of Kalgoorlie IT frequently highlight the team's deep knowledge and expertise. Many express appreciation for the professional assistance they receive, often noting that the team goes above and beyond without additional charges. This level of service has earned the company a strong reputation in the community, as clients feel valued and supported.

Additionally, clients commend the company for its effective solutions tailored to their specific challenges. They often mention that Kalgoorlie IT offers reasonable pricing along with high-quality service. This approach not only resolves technical issues promptly but also provides peace of mind, allowing clients to focus on their core business activities without stress.

4.8★
AsQuick IT
Geebung, Queensland

Overview

AsQuick IT is a managed IT services provider located in Geebung, Queensland. They specialize in offering reliable IT solutions that cater to the needs of small to medium-sized businesses. This IT services company focuses on providing efficient support and swift issue resolution to ensure their clients experience minimal downtime.

Their team is known for being professional and responsive, fostering a friendly relationship with clients. AsQuick IT helps businesses with various IT challenges, including network issues and software setup, enabling organizations to operate smoothly and efficiently in today's digital landscape.

What clients say about this company

Clients frequently praise AsQuick IT for their quick and effective service. Many comments highlight the team's professionalism and their ability to resolve issues promptly, which significantly enhances the overall experience for users seeking IT support.

The onboarding and training provided by the team receive positive feedback too. Customers appreciate the clarity of communication, as they make technical concepts easy to understand, ensuring clients are well-supported throughout their IT journeys.

4.9★
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