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Why Not to Buy New Servers

A customer call started with a hardware quote.

“It seems our server’s at end of life. I’ve got a quote on my desk for two new ones — hardware, licences, data migration, it’s more than ten thousand dollars. Can you take a look before I sign it?”

This is a twelve-person professional office. There’s an older server in a closet, with Windows Server 2016, unnoticed and working just fine for eight years. The quote was to replace it with new hardware — same capabilities, just on current hardware and software.

We checked it out and told him not to buy the servers.

Why there was an urgency for a quote

Part of the quote that was completely legitimate: the deadline is real. Microsoft ends support for Windows Server 2016 on January 12, 2027. After that date, no more security patches — an unpatched server holding your business files is not a wise or safe business strategy. A lot of businesses are getting quotes like this one now, for exactly this reason.

So the timing wasn’t the issue. The assumption was. The quote answered “what does it cost to replace this server?” without ever asking a better question: what is this server used for?

What the server did

We asked, and then checked. Eight years ago, that box had many business functions. In 2026, the list had quietly shrunk to three jobs:

  1. Storing the shared files — the S: drive everyone mapped on their computers
  2. Running the accounting software — an on-premises version installed years ago
  3. Backing itself up — protecting the data that existed because of jobs one and two

Email had already been moved to Microsoft 365, years earlier. Nobody used it for print jobs anymore. The server wasn’t a core part of the business — it was an expensive, aging filing cabinet.

What we recommended instead

The shared files were moved to SharePoint. The business was already paying for Microsoft 365 licences that include SharePoint and a terabyte of OneDrive storage per person — capacity they’d owned for years and never used. We’ve written other articles about how OneDrive, SharePoint, and Teams fit together; for this office, all of drive S: mapped cleanly onto several SharePoint libraries.

The accounting software went to the vendor’s cloud version. This migration had been on their someday list for years; the server deadline finally made it a priority. A monthly subscription replaced an on-premises solution the vendor was retiring.

The backups followed the data. With files and accounting in the cloud, the backup plan changed — cloud data still needs backing up, but that’s a service, and it doesn’t need a server in a closet.

The migration cost came to a fraction of the hardware quote. When it was done, the server was retired — not replaced.

What they got besides the savings

The money got their attention, but a year of quotes like this has shown the other wins matter too. No more single server in a closet that can take the whole office down. Files are more easily reachable from home without VPN gymnastics — properly, with two-factor authentication in front. Server security patches that happen without scheduling a maintenance window. And no $10,000-plus conversation waiting to repeat itself in another eight years.

To be fair: sometimes the answer is a server

We’d be doing the same thing we’re warning about if we pretended the answer is always “in the cloud.” A business working with huge local files — CAD, video, large design work — often needs local storage. Some line-of-business software only runs on-premises equipment. If your internet connection is slow or unreliable, moving your files to the cloud is a bad trade. For those businesses, a modern server replacement is the right call.

The point isn’t that servers are obsolete. The point is that “replace what’s there” shouldn’t be the default answer to an end-of-life deadline — because sometimes the real answer is not as involved or expensive as the quote.

If there’s a quote on your desk

With the January 2027 deadline coming, there are a lot of Server 2016 replacement quotes landing on desks now. If one of them is yours, we’re glad to look at it with you before you sign — sometimes the best money we save a client is money they were about to spend.

Paul Konyk, founder of iKonyk Solutions
Paul Konyk

Founder of iKonyk Solutions — a Calgary-based managed IT company serving small businesses across Alberta. With 30+ years of IT experience, Paul helps businesses stay secure, productive, and on top of their technology. Book a free call to talk through your IT needs.