Cloud servers: when they make sense for your business

Many people searching for “cloud servers” are looking for clear guidance: is it worth replacing your own servers, or running a new application in the cloud from the outset? What is usually meant is that computing power, storage and related services are no longer run in your own server room, but on a cloud provider’s infrastructure, for example for hosting and operation.

For managing directors and IT managers, this is rarely about technology for its own sake. The focus is usually on availability, effort, scalability and the operation of new or existing applications.

This article offers practical guidance on:

• typical use cases
• benefits and limitations
• organisational prerequisites
• sensible decision-making criteria

One point matters above all: not every application automatically belongs in the cloud. Whether a cloud server makes sense depends on your starting point, your requirements and the systems already in place.

What a cloud server means in day-to-day business

In day-to-day business, “cloud server” usually means that applications, databases, interfaces or file services no longer run on your own on-site hardware, but are operated in a rented environment. Put simply, the cloud is a service in which a provider makes data centres, servers, storage and related services available for companies to use as needed.

In practice, two cases should be clearly distinguished:

• replacing existing servers
• building a new application directly in the cloud

The two may sound similar, but they raise different questions. If existing servers are to be replaced, the issue is often not just the operation itself. Applications, data, user sign-in, permissions and connections to other systems are usually tied to them as well. Interfaces are technical connections through which systems exchange data. This is often where it becomes clear how closely a server is tied to existing processes. Looking carefully at these dependencies helps avoid friction later on. You can read more about this in the article Planning processes and systems.

A new application is different: it is often designed from the start with scalability, access, updates and later operation in mind. The question is then not just where the software runs, but also how it fits into users’ day-to-day work.

This makes one thing clear: the decision to use a cloud server is rarely just an infrastructure issue. It almost always affects processes, responsibilities and the future development of the solution as well.

When a cloud server is particularly worthwhile

A cloud server is particularly worthwhile when a company is facing a specific operational or organisational change. Typical situations include:

• Your own servers are getting old and need to be replaced, without investing again in hardware and its ongoing maintenance.
• A new web application, portal or app needs to be run so that different user groups can access it.
• Several locations, external partners or mobile teams work with the same application and need central access.
• Applications need to be connected to Microsoft 365, Entra ID or other existing systems. Entra ID is a service for sign-in and access control.
• Usage levels vary, for example due to seasonal demand, project peaks or growing data volumes, and the operating environment needs to remain adaptable.
• Companies want to use AI features in the Microsoft Cloud, such as assistants, search across company knowledge or document extraction. Azure OpenAI is a cloud service for these kinds of AI features.

This can also make sense for public-sector clients and agencies when applications need to be usable and maintainable across organisations. In that case, it is not just about where the system runs, but also about how several parties can work reliably with the same solution.

An example from our own projects illustrates this well: a web platform for local authorities brings together sewer networks, condition data and planned measures in one place. Typical reasons for running this in the cloud are central data storage and web-based access for different parties involved. If you would like to get a feel for similar projects, you can find insights into completed work.

If you would like to check whether these use cases fit your project, it often helps to start with an overview of typical services, a rough initial cost estimate, a structured project profile or a no-obligation initial consultation.

What benefits you can realistically expect

A cloud server can above all redistribute internal operational effort. Less time goes into physical hardware, hardware replacement or maintaining local server rooms. More attention can instead be given to applications, users, permissions and smooth processes.

Another point is that new environments can often be set up in a more structured way than server landscapes that have grown over time. If you are planning afresh, responsibilities, access, updates and technical dependencies can usually be organised more clearly, instead of carrying special cases forward for years.

This is particularly relevant for web applications and portals. Cloud operation is often a good fit here, because availability, updates and enhancements can be managed centrally. That is especially helpful when different user groups work with the same application.

Data storage can also be planned more cleanly. A database is the structured storage location for an application’s information. When the application and database are operated in a coordinated way, maintenance and further development are often simplified.

The cloud provider’s security features and central services for secrets or credentials are also practical. Key Vault is a service for the secure management of sensitive access information.

For ongoing operation, it is also important how software changes are implemented. Automated tests and CI/CD can help manage quality and changes more reliably. CI/CD is a standardised way of checking and deploying software changes in a controlled manner.

Modern cloud environments also allow different operating models. Container Apps are one way to run applications in clearly separated, consistently manageable packages. Front Door is a service that routes user requests to the right application and thus organises external access.

None of this replaces sound planning. But it does show why a cloud server is not just a different place for IT, but often also an opportunity to organise operation and responsibilities more effectively.

How to make a sound decision for your project

A sound decision usually does not begin with the target environment, but with the starting point. First clarify what exists today, what goals are to be achieved, which systems are involved, which user groups will work with the solution and who will be responsible for operation later on. Only then should you decide whether and how a cloud server is the right fit.

For existing applications, it is worth taking a sober look at their value and future viability. This often leads to four possible paths:

• continue operating
• modernise
• redevelop
• replace

As a rule, a project is well prepared when requirements, expectations and a rough level of effort have been assessed together. At the outset, this does not necessarily require a finished functional concept. A clear description of the project is often enough.

A sensible process is usually:

• getting to know each other
• concept and design with cost estimate
• development with regular coordination
• quality assurance and go-live
• followed by support and further development

It is also important to look at adjacent tools. In one integration project, an extension connects Azure DevOps with planning software. This shows that cloud projects rarely stand alone. Azure DevOps is a platform for planning, development, testing and deployment of software.

For an initial assessment, the cost calculator is suitable; for more complex projects, the project check is the better option.