Almost all businesses have a server. Small business servers are computers that runs software specific to your business needs. Examples are rental software, event planning software, customer tracking packages, inventory management and many more. Many small businesses run QuickBooks on their central computer (server). A server is usually a central computer to the business operation.
Most servers are connected to a network so that multiple computers can access the programs or data on the server. A server usually contains a database that keeps track of critical information. Typically, users logon to a a server at another computer, referred to as a workstation or client. Perhaps the terms client / server are familiar to you.
There are two categories of servers to consider when an upgrade is coming. You can use the conventional on premise server or you may want to seriously consider a hosted server, also known as collocation or cloud servers.
In the following links, you can find more information about each. But in summary, a conventional server means that the machine is located in your physical location, is maintained by you or an outsourced IT specialist and the full responsibility of keeping it running is the business owner. See more about conventional servers here.
A hosted server is a server located off of your business site, typically in a data center. The operators of hosted servers own very powerful high performance servers that can server multiple businesses off of a single computer. There is a certain economy of scale that is earned by using this kind of service. To find out more about hosted servers, click here.