Purchasing Considerations

To build or buy a new server? That is the question. As with all other IT decisions, there are pluses and minuses to doing either. If you can build a PC, you can build a server. The Upgrading and Repairing PCs series from Que Publishing offers just about all the know-how you need to build a system, and this chapter does not seek to replicate its content. However, simply because you can do something doesn't necessarily mean you should. So let's look a little more closely at the considerations related to building and buying.

Reasons to Buy from First-Tier OEMs

Buying a server from a first-tier vendor such as Hewlett-Packard, IBM, Dell, or some other large vendor is a straightforward proposition. Your entry costs into the system are known, as are your potential support costs. Chances are that buying a server from a large OEM is going to be your least expensive solution; the companies' high volume assures that.

You can also be sure that the company will keep you up-to-date with new BIOS and drivers as soon as they become available. Also, because these types of companies build a lot of the same models of servers, they will undoubtedly have experienced any problem you may encounter in your server's lifetime. Large vendors reduce the number of variables by narrowing the range of options to the ones they test extensively. It's difficult (but not impossible) these days to buy a server from a large vendor and have a truly miserable experience. However, there are only a limited number of options and customizations you can get from large OEMs, unless you have a very large order that is serviced either by the company's IT services branch or by some affiliated large VAR.

Because many people feel that server models from large OEMs are a safe choice, resale value of these systems tends to be higher than for systems that are custom built. Resale value on any computer system should not be a first priority in your selection, however, because the values drop quite significantly rather quickly.

Many people buy from first-tier vendors because they believe that these companies are going to be in business forever, although these days you never know. Still, there are good margins in servers relative to the PC industry, so it's an almost certain bet that some large company will service your specific model come what may.

When you buy a server from a large vendor, not all aspects of the transaction are good. Servers from first-tier vendors tend to use proprietary cases and motherboards, and they may require that you buy very specific kinds of memory that aren't widely available and are therefore quite expensive. This effectively locks you into the hardware you have purchased. As the server ages, you may find that upgrades and service contracts purchased from these types of OEMs can be expensive. This type of "lock-in" is a standard practice for large OEMs.

Reasons to Build

Compared to buying a server, when you build your own, you have more control over the components and their manufacturers, and you can choose your own server standards. You can find a wide range of server motherboards on the market to choose from, in a variety of form factors: BTX and ATX in both standard and extended form factors, low-profile boards for 1U servers, and perhaps, in time, micro boards. (Chapter 4, "Server Motherboards and BIOS," covers server motherboards in more detail.)

Until recently, building a server yourself meant that you were limited to dual-processor systems. However, major server motherboard vendors such as SuperMicro and Tyan now offer a variety of four-way motherboards using Intel Xeon MP processors. Tyan also offers four-way and eight-way motherboards that support AMD Opteron 8xx processors. These vendors and many others also supply one-way and two-way motherboards. An increasing number of motherboards also support the latest dual-core server processors from Intel and AMD. Consequently, you can now build a powerful server yourself.

Keep in mind that your costs to build a server are probably going to be about 15% to 20% higher than purchasing an equivalent system from a first-tier vendor, and resale of your server later on will be more difficult. However, your costs moving forward for system upgrades and hardware support will be lower, and chances are that if you can build a server, you can provide adequate system support.

Reasons to Opt for a White Box

There is a third viable option for obtaining your server: About 40% of the server market is in the form of "white boxes," or unbranded systems put together by smaller VARs or OEMs. Some vendors buy white boxes from first-tier vendors, and these are essentially standard models in unbranded (thus "white") cases. More often, though, white boxes are servers assembled from standard components in just the same way that you might build the server yourself. White box vendors have the advantage of building more servers than you might and can build to order a system based on your specifications. Most VARs of this type sell these servers as part of solutions, and they package hardware, software, and service as a total package.

A white box server is hard to price effectively because it is usually part of a larger package. If you could separate out the hardware portionand you usually can'tyou'd find that the server would cost a little more than it would from a first-tier vendor, but the resale value would be similar to that of a system you build yourself. However, you are buying hardware, a solution, and support, so you are in effect sourcing out this IT function to people who specialize in their particular technology.

For a lengthy discussion on the advantages and disadvantages of buying a nonbranded white box PC, take a look at Daniel Dern's lengthy article on Informit.com, at www.informit.com/articles/article.asp?p=170498&seqNum=3&rl=1.

Comparing Building and Buying a Server

Table 20.1 summarizes the various options you have when it comes to buying versus building a server. Keep in mind that these evaluations are generalities and that some members of each group will be substantially better or worse than the ratings listed in this table.

Table 20.1. Advantages and Disadvantages of Building Versus Buying a Server

	First-Tier OEM	Home Built	VAR White Box
Entry cost	Very good	Fair	Good
Long term cost	Good	Very good	Good
Upgrade potential	Fair	Excellent	Very good
Vendor support	Fair	Good	Very good
Resale value	Excellent	Fair	Fair
Range of server types	Excellent	Very good	Very good
Reliability	Very good to excellent	Good, improving with time	Very good