Why SMBs Need Servers for Growth and Security

WHY IS SERVER SO ESSENTIAL FOR THE GROWTH OF SMALL
AND MEDIUM BUSINESSES?

SMB Current Scenario of Small and Medium Sized Businesses

In the present Challenging Time it’s not easy trying to operate a small to medium-sized
business (SMB). The economy is still struggling, competition is fierce, and already-stretched
budgets must be cut even further to weather the storm. As a consequence, small to
medium-size businesses (SMBs) are re-evaluating where and how they spend money, how
they drive revenues. In the process they neglect the importance of how IT supports these
goals.

Many small and medium businesses (SMBs) don’t have a dedicated IT department. At best,
they have maybe one or two people who handle IT. Yet, their IT demands are similar to
many large enterprises. Business even for SMBs is a 24/7 proposition. Many employees
want 24/7 access to e-mail, files, and applications. And that need for around-the-clock
availability is also being driven by the global extent of the Internet – any company with a
Web site and a product or service to sell online must have be able to accommodate
Customers on their time frame. These contrary conditions that are being faced by many
SMBs —little or no IT staff and growing IT demands—mean that they need reliable IT
equipment that is easy to manage. Unfortunately, as the economy has worsened, SMBs
have fallen behind in adoption of IT solutions that have the potential to cut costs and
position their companies for growth.

Based on user surveys, the IT Effectiveness Index1 found that nearly one in four SMBs
received a “failing grade” in IT effectiveness. These companies reported a high level of
downtime, a lack of security, and the absence of disaster recovery programs. About 37
percent of SMBs received a “C” grade, which indicates they are just barely getting by.

JAIDEEP KUMAR Page 1
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Where is the real Problem?

Almost every startup business uses computers. And as your new business grows, adding
Desktop, Laptops, PDAs and other communication or data devices is almost inevitable.
Before you know it, you may reach a point where your computing infrastructure seems
disorganized.

Whether you know it or not, the minute you add a second computer to the original one you
used to start a business, you’ve created a “peer-to-peer” computing environment in which
separate machines perform many of the same computing functions in a decentralized way.
It is surprising that the majority of companies never bother implementing a client/server
based network. Instead they just continued adding on workstations to their old peer-to-peer
network.

Peer-to-peer networks don't provide you with much in the way of security and resource
sharing. PCs networked in a peer-to-peer fashion are adequate when you only have a few
users on the network, but once you have more than 5 or 6 users on your network, then you
really start facing the problem. You’ll notice you’re getting tired of the lack of data
coordination among your employees and the huge inefficiencies that that implies. You’ll wish
you could pull up that important file from your Agra based office while you’re road-
warrioring your way through sales calls in Lucknow. You’ll reel from the occasional
disastrous loss of data that hasn’t been backed up and the frustrations of everyone on your
team in trying to recover.

“It boils down to the pain points that a small business might be facing.”

What can we do?

If that sounds familiar, it may be time for you to purchase a “server” – one machine that
can “serve” the information needs of all of your computers from a central source, ensuring
that all of your employees and all of your applications are working in sweet concert instead
of haphazard isolation. For several thousands to a few lacks Rupees, a server instantly
provides many benefits that make the investment more than worthwhile.

A server is a single computer whose purpose is to be the master administrator and router of
all of your company’s computing needs. Any type of software or data that benefits from

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coordination and protection is stored on - and dispensed by - the server to your other
computers, which become networked together because they’re all tied into the server. Its
operation requires specific server software, such as Microsoft’s Small Business Server 2008.

Customer data can be updated by anyone on a computer linked to your company’s server,
and when they access it, they can be sure it’s up to date. Your team can update and share
Word documents, PowerPoint presentations, or Excel spreadsheets in the same way using a
server. No matter where you are physically, your computer can communicate not only with
the “home office”, but with individual employees through your server. To keep out threats
and unwanted emails, you can apply anti-virus or anti-spam software via the server and it
will clean and protect the data flowing to and from all of your computers.

And you can use your server as the Company’s IT-Security gateway, setting it to regulate
various levels of access to your data and your computers for people both inside and outside
the company. Some entrepreneurs even use their servers to host their websites; but if
you’ve got a decent amount of traffic to your site, that’s probably something you want to
contract out to a specialist.

You can actually purchase a low-end server for as little as Rs. 50,000. But, typically, you
can expect to pay from Rs. 90,000 to Rs. 120,000.00 for a server that will meet the needs
of a startup with one to dozens of employees, including the server software needed to run
the server.

According to PC World, SMBs can and should use servers for centralized file management,
printer sharing, shared storage, automated backup, Web site design, communications, and
even Web hosting. Today’s powerful and expandable servers enable SMBs to create a solid
and versatile computing infrastructure, and this leads to benefits such as:

Server Benefits

#1 File and Network security

The most important role of a file server is the network security it provides. By creating
individual user and group accounts, rights can be assigned to the data stored on the
network preventing unauthorized users from accessing materials they shouldn't be viewing.

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For example, the sales team doesn’t need access to employee personal records which
should only be accessible by HR.

#2 Increase reliability; decreased workflow interruptions

Many servers are equipped with redundant power supplies. With a secondary power supply
running in tandem, the loss of one of the power supplies doesn't affect normal system
operations. The same goes for a server's storage system. Unlike an average desktop PC that
uses a single hard drive, a server will typically use multiple hard drives working in
a RAID configuration to prevent data loss or an interruption in workflow. In addition, many
servers are also equipped with Hot Plug hard drives and power supplies. These Hot Plug
components allow you to replace faulty hardware without interrupting the entire office. In
addition, since all employee data is being stored on the network, if a user's workstation fails
mid-workday, employees can access the same files from another workstation.

#3 Centralized data storage and shared resources

With a network server, all of the users on the network can make use of various network
resources right from their desks, increasing efficiently. Some of these resources include the
following:
- Centralized data storage (RAID Array)
- Network Attached Storage (NAS) Devices
- CD/DVD Towers
- Printers and Fax servers

#4 Virus Management

One of the greatest threats to your network is the possibility of infection from viruses,
spyware and spam. So having good, updated, anti-virus software installed on your systems
is a necessity. In an office of 10 people or less, systems can be maintained individually.
Anything more than that, though, can become a real burden. In those circumstances, an
anti-virus package that combines workstation and server virus protection into a single
solution makes more sense.

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#5 Centralized Backup

All businesses should backup their data on a regular basis. By having all of your company
and employee data stored in one location, backups can be performed reliably and quickly.
So you'll never need to worry about what data is stored on what workstation as you do in a
peer-to-peer network. Today, almost any media type can be used for backup purposes. In
addition to the traditional tape drive, HP RDX Storage, CDs, DVDs, removal storage and
even Network Attached Storage (NAS) devices are acceptable. Your choice of media will
depend on your specific backup requirements. Depending on your budget and your data
retention needs, any of these would be an acceptable solution. Make sure you have at least
a scheduled weekly backup, although a daily would be better.

Why Entry Level Server is better than High End Desktop?

Does your business have more than 5 employees? If your answer is “Yes,” then your
business should be using a server network. If you don't already have a server in your
business, you're probably already using a desktop system as a server of sorts. Maybe it
controls some files or printers that you can share with other PCs, but there are key
differences between servers and desktops, and many good reasons to invest in a server for
your small business. Many people are under the misconception that a server is no different
from a typical desktop PC. This couldn't be further from the truth. While almost any PC that
meets the minimum hardware requirements can run the server operating system, that
doesn't make it a true server. The technologies behind them are engineered for different
purposes. First and foremost, you need to understand these key differences between
servers and desktop computers.

A desktop system is optimized to run a user-friendly operating system, desktop
applications, and facilitate other desktop oriented tasks. Even if the desktop had similar
processor speeds, memory and storage capacity, it still isn't a replacement for a real server.
The technologies behind them are engineered for different purposes. A server is engineered
to manage, store, send and process data, 24 hours a day, 7 days a week, 356 days a year.
For these reasons, servers need to be far more reliable than their desktop counterparts. In

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order to accomplish this, servers offer a variety of features not typically found in a desktop
PC.

So let's look at some of those differences. On the surface, they seem very similar. Both
have a CPU, RAM, and hard drives for storage. Servers, however, are designed with
heavy-duty back-end tasks in mind, and aren't well equipped to run normal desktop
workloads, such as graphics-intensive applications. Servers excel at running services
supporting those desktop applications, such as databases.

Superiority of Server over Desktop PC:
1. Performance- Can process data faster and more efficiently
2. Scalability - to meet current, as well as future needs
3. Reliability - Redundant & Hot Plug Components
4. Manageability-Reduced Administration, More Secure & Long term cost saving

#1. Performance -Can process data faster and more efficiently

The CPU in an entry-level server isn't all that different from a midlevel desktop, but does
differ in some ways, such as it is packed with new and enhanced technologies as well, such
as an integrated memory controller, a three-level cache hierarchy, Intel® Hyper-Threading
Technology, Intel® Turbo Boost Technology, and Dynamic Power Management.

Like modern desktop systems, server CPUs can have multiple cores, although they
generally make better use of multiple cores than desktop systems will. Multiple-core CPUs
are basically a single CPU that contains two or more processing cores. In essence, it’s like
having several CPUs on a single chip. Using multi-core CPUs can greatly increase the
processing power of the system and lengthen the usable life of your server. Some
entry-level servers, such as an Intel Xeon E3-1220, also have a Quad-core CPUs. For an
office of 10-40 users, this is generally sufficient. Be aware, though, that a few extra Rupees
invested now in on a higher-powered server -- say a dual-socket server can be greatly
beneficial as your business grows. Overestimating your needs now might be your best bet.

To put it simply, CPU CACHE is a small, dedicated pool of RAM that the CPU can use to store
frequently requested data. If the cache is larger, the CPU appears faster because it can

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store more data in the cache for faster recall. Server CPUs generally have larger and more
varied caches than desktop systems for just this reason.

INTEL TURBO BOOST TECHNOLOGY gives an administrator the option to manually or
automatically turn off individual cores and run the remaining cores faster than their nominal
frequency (if there is power and thermal headroom to do so). This provides the flexibility to
run in an energy-conserving mode during normal times, while allowing the servers to
throttle up during peak workloads. Dynamic Power Management works hand-in-hand with
Intel Turbo Boost Technology to automatically optimize the performance and power use of
the processor, chipset, and memory based on business requirements.

In essence, Dynamic Power Management allows the New Intel Xeon processor to provide
greater performance using the same amount of power as previous-generation Intel
processors, or achieve performance equivalent to previous-generation processors using less
power.

Servers also generally have very FAST RAM, which is quite important for performance. Since
servers are running many different tasks simultaneously, fast RAM and a fast system bus
are crucial to maintain smooth operation. ECC, or error‐correcting, RAM is also a feature of
most server-class systems. ECC helps protect the integrity of the data stored in RAM during
normal processing. It costs a bit more than non-ECC RAM, but in a server system, it’s
generally a requirement.

The disks in servers are also generally different than those in desktops. There's more to
hard drive than just size -- the speed at which the platters within the drive spin can greatly
affect performance of the entire server. Hard drives running at 10,000 RPM can deliver data
faster than slower drives running at 5,400 RPM, especially under load. There are several
different types of hard drives as well, such as SATA and SAS drives. For most entry-level
servers, 7,200 RPM SATA drives configured in a RAID1 or RAID 0 arrays will be sufficient.
For higher performance, you may want to consider SAS drives. Generally,
higher-performance disks are necessary only if the server will be running heavier
applications, such as a large database.

For connecting to the network, most servers have at least one GIGABIT NETWORK
INTERFACE (the piece of hardware that talks to the network). These interfaces are different
than the network cards in desktops since they perform certain network functions by
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themselves, relieving the server's CPU to handle more complex tasks. The end result is that
they can push more data under load than normal network interfaces. If multiple interfaces
are in the server, they can even be bonded together to provide greater bandwidth.

For the most part, servers in small-business settings are designed to run a large number of
different services and applications to support a small number of users. Products like
Microsoft's Small Business Server are designed to do just that. They offer many different
functions that can run on a single dedicated server, but they can support only a relatively
small number of users. In many small business environments, this is all that's necessary.
And there's one more bit of good news: These days, entry‐level servers are available for
nearly the same cost as midlevel desktops, making them a natural for small businesses.

#2. Scalability - to meet current, as well as future needs

While a high-end personal computer may meet the existing needs of a smaller business,
there's a high probability that it won't be able to keep up as the company expands and its
network needs increase.

Servers are designed with scalability in mind, so as your business grows your server will
have little trouble supporting increases of data, users and network traffic. Some Servers
are Dual Processor and some multi Processor capable so that if required it can be upgraded,
reducing the extra cost incurred in purchasing new hardware. The Memory and Storage
space can also be dramatically increased to withstand the future expandability requirement.
It is possible due to the more numbers of DIMM Slots and RAID Technology which is missing
in any Desktop & Laptop. Network Interface can also be added due to availability of more
numbers of PCI Slots present on the Server enabling it the number of user expansion.

Servers are designed to meet a wide array of needs and accommodate nearly any number
of users. While a server's flexibility and scalability are two of its biggest selling points, the
downside to this is that it makes it extremely difficult to provide a simple, precise answer to
the question of how much memory and storage space will be needed when implementing a
new server. Each case needs to be researched based on a number of factors, most notably:

- How will the server be used
- How many users will the server need to accommodate, both now and in the future
- The types of demands users will be placing on the server, both now and in the future
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The correlation between the number of users a server will be supporting and the amount of
memory needed is very high. As a result, the amount of memory in a server directly
impacts the number of concurrent users that it can support, as well as the number of
applications the users can concurrently use to interact with the server. An important
consideration, though, is the maximum amount of RAM the server's operating system can
utilize. As an example, the standard editions of Windows Server, including Windows Server
2008, can only support a maximum of 4 GB of RAM, whereas the enterprise and datacenter
editions can scale from 32 GB up to 2 TB, depending on the specific version of Windows
Server used.

When it comes to storage space, many organizations initially gauge their server's amount of
storage based on the number of users the server is expected to accommodate, but the
correlation between storage space and users isn't as high as the memory side of the
equation. A more important gauge of how much storage is needed involves the types of
demands users are expected to place on the server. What your users will be accessing on
the server and working with will determine how much memory and storage you can expect
each user to need.

In terms of storage, disk quotas can be applied to track and control each individual user's
disk space, helping to prevent the server from filling to capacity without warning. Quotas
can also be applied on a per-user basis if some users have needs that necessitate additional
storage space. As an example, if a file server has a limit of 250 MB per user but you find
that some users need to exceed that limit, these users can be provided with higher limits
(500 MB or 1 GB, for example). The key is to set quotas that will allow you to accommodate
your initial number of users and their needs while retaining enough unused storage space to
accommodate user growth or evolving data storage needs. And as mentioned earlier,
additional storage space and memory can be added to a server fairly easily and
inexpensively in most cases without needing to replace the server.

#3. Reliability - Redundant & Hot Plug Component

Redundancy is particularly important for storage, where RAID (redundant array of
inexpensive disks) is typically utilized to keep a server up and running even if a hard drive

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crashes, as well as for power, where backup power sources are utilized to keep a server
operational even if the main power supply goes down. These components and other
hardware in a server can typically be replaced with minimal or no disruption without
shutting down the Server to users with Hot Plug Component.

By adding a server even an entry level server to your network, you can benefit greatly from
these features, especially considering the data protection available in a RAID array. One of
the major hardware differences between servers and Desktop is the disk subsystem. While
desktops have a single hard drive, servers generally have several hard drives configured to
appear as a single disk. This is called RAID, or Redundant Array of Inexpensive Disks. RAID
is widely used to protect servers from individual disk failures, critical when your business is
at stake. If a drive in a RAID array fails, it does not mean that the data contained on that
drive is lost, since other drives in the array still contain the data. There are multiple levels
of RAID, but for entry-level servers, RAID levels 1 and 5 are the most common.

RAID level 1 is a simple mirror of two hard drives. The data stored on a RAID 1 array exists
on both drives at all times. If one drive fails, the other drive still has a complete copy of the
data, and the server can continue to function. RAID 5 is more complex, involving at least
three drives, and the setup can survive the failure of any one drive. Either option will
protect against failures, but RAID 5 delivers more available disk space than RAID 1 and is
faster as well. This data protection is crucial to a server, and any server you add should be
equipped with a RAID controller and a RAID array. Make sure a hardware-based RAID
controller is in the server as well, not just a software-based one -- software-based RAID
works, but can be more problematic for the uninitiated, since there isn’t a dedicated
controller managing the hard drives. If you’re using software RAID only, you may run into
difficulty in the event of a disk failure, especially if you’re not an expert at software RAID
recovery procedures.

Another feature of most servers is REDUNDANT POWER SUPPLIES. This means that the
server has at least two power supplies that both draw power during normal operation. If one
power supply fails, or power is cut to that supply, the server continues to function. Not all
servers have this feature, but some offer the option of adding another power supply later
on. As with any computer, you should add a UPS (Uninterruptible Power Supply) to protect
your server from power surges and outages.

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Some entry-level servers offer Hot-Plug hard drives and Power Supply, while others do not.
Hot-Plug drives enable a hard drive & Power Supply to be replaced without shutting the
server down or even opening the case. If a disk fails or any of the Power Supply fails it can
be pulled out of the running server and replaced. When the disk is replaced, the RAID
controller will then rebuild the RAID array to ensure that the data is protected. If the server
does not have hot-Plug component, then the server must be shutdown, opened, and the
failed component is replaced inside the system.

#4. Manageability-Reduced Administration, More Secure & Long term cost saving

When you’re setting up the Servers, Server’s Onboard Administrator software delivers
management features that simplify server configuration, health and performance
monitoring, power and thermal control, and remote administration. It also includes SSL
security, detailed server status updates, event logs for investigating and remediating
incidents, alert forwarding to ensure that the right person learns of specific events, virtual
indicators, diagnostics, and power capping to ensure that thresholds are not exceeded.
Onboard Administrator functions without additional software and can be accessed locally or
remotely, supporting in-house or off-site management seamlessly.

With Insight Control, your business will enjoy a 12-fold increase in server deployment
speed, a 77 percent reduction in unplanned downtime, reduced administrative expenses
with remote management capabilities, and the ability to increase capacity and expand the
server without causing additional headache or delay. Further, those who want a helping
hand can turn to HP Insight Remote Support, which enhances HP SIM’s event-monitoring
capabilities by sending automatic hardware event notification securely to HP. In many
cases, this can help companies avoid or fix problems before they escalate into failures,
which is a tremendous benefit for a number of reasons. First, your computing systems are
more reliable and less prone to unplanned downtime. Second, this tight monitoring and
control is provided by HP, which relieves a significant amount of the maintenance burden
from an already-stretched SMB IT staff. Remote support reduces IT overhead and thus
saves time and money. This remote support is free with a valid warranty HP Care Pack.

An integrated health monitor ensures that your server is running optimally and helps
prevent problems before they disrupt service. Insight Control detects, analyzes, and

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explains hardware bottlenecks on HP ProLiant servers, notifies admins if a bottleneck seems
to be building, and debugs performance issues. It logs data and provides a playback tool to
help IT staff visualize incidents as they happened, which helps in after-hours problem-
solving. Insight Control also pinpoints the exact component that is causing performance
issues, with an explanation of the issues, so you can repair or replace accurately and extend
the life of your server.

While you can certainly expect a higher up-front cost when investing in a server as opposed
to utilizing an existing high-end desktop, over the long run you're likely to see a lower total
cost of ownership with a server for several reasons. First, with your server serving as a
central resource controller there will be fewer components to have to support in terms of
administration and maintenance. Additionally, with servers being designed to allow many
users to share applications and connections to the Internet and wide area networks (WANs),
a high-end server can reduce the need for duplication of hardware as well as additional
computers in many cases.

Beyond the purchase price, an SMB solution appropriate for today’s business environment
must also have a low operating cost. Here, there are two areas that must be addressed to
achieve the best results. First, the solution must be easy to manage. Over the life of a
server, the cost for a person’s time and labor needed for server administration and
management can be substantial. In most cases, the management costs dwarf the purchase
price of the server itself. The easier a server is to manage, the lower this cost will be. Better
still, servers with built-in monitoring tools can help detect potential problems before they
impact a server’s availability or performance. For instance, noting that storage space is
preciously low, and IT manager might offload some files to an archival storage system
before an application gets an error message when writing data to a server disk drive.
Without this ability to detect potential problems before they occur, a server might crash and
someone would have to spend possibly many hours troubleshooting to figure out why a
server has crashed. With a solid management and monitoring system in place, a manager
would have the luxury of taking preventive measures to ward off downtime. A second
operational cost area that requires attention today is the consumption of electricity. Each
generation of IT equipment, in general, and servers, in particular, has consumed more and
more power.

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RACK VS. TOWER

Entry-level servers are generally available in either a rack-mount or tower form. If this is the
first server for the company, you probably won’t have a suitable server rack already in
place, and for a single server, adding that rack may not be cost- effective. Thus, a tower
server is likely to be the best option.

Many tower servers can later be converted to rack-mount servers with the appropriate
conversion kit, so if your infrastructure grows to the point where a rack is required, your
existing investment can be modified to fit your needs.

A tower server is generally only slightly larger than a regular desktop system, and can be
placed under a desk or in an area that has little traffic. Make sure that there’s adequate
ventilation and climate control wherever you place the server. Though it’s a good idea to
also have a monitor, keyboard, and mouse hooked up to the server, doesn’t be tempted to
use the server as a desktop system.

Wrapping It Up

For the small business owner, adding a server to your network doesn’t need to be a
daunting task.

Stress on your computing infrastructure is usually a blessing that comes from growth. And
to make sure nothing gets in the way of that growth, you’ll likely want to buy a server. It
might be one of the best things you can do right now to streamline your operations and set
the stage for future success. Servers are the unsung heroes of the corporate computing
environment, working behind the scenes to help get the maximum benefit from the personal
computers that people should implement.

For any consultant regarding your IT Infrastructure Designing, Optimization or up-
gradation you can kindly contact the undersigned.

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Why SMBs Need Servers for Growth and Security

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