How to Run Your Business Without Microsoft Small Business Server

Microsoft left many companies' IT strategies in tatters last year when it announced it was abandoning Small Business Server. To replace it, firms can either follow Microsoft's advice or look at alternatives such as Google Apps and Linux-based servers.

By Paul Rubens
Thu, January 23, 2014

CIO — Microsoft Windows Small Business Server is hugely popular with businesses of up to 75 people — not to mention the resellers and service providers that often supply it. That's mainly because it offers a combination of Windows Server 2008 R2 and Exchange Server 2010 in one box at very good price. It also includes SharePoint Foundation 2010 and SQL Server 2008 R2 Express and, with the additional purchase of a Premium Add-On pack, it can support applications that rely on SQL Server 2008 R2 Standard.

But last July, Microsoft said Small Business Server 2012 would be the last SBS version and would remain available only in the OEM channel until the end of 2013. In reality, though, supplies dried up long before that. Dell, for example, announced in July that it would no longer be supplying SBS.

Many customers greeted the decision with dismay, with the first commenter on the Windows Server Essentials blog calling it "by FAR the biggest BONE HEAD (sic) decision Microsoft has made!"

Without Small Business Server, What Are Firms to Do?

So, where does this leave businesses that previously would have used SBS as their low-cost, all-in-one server solution?

Microsoft would like you to purchase Windows Server 2012 Essentials, the product it has positioned as a replacement for SBS. Essentials is quite a different animal altogether, though.

For one thing, it provides out-of-the-box support for just 25 users (and 50 devices.) If you have more than that, you must purchase the full-blown Windows Server 2012 Standard edition.

More importantly, one key attractions of SBS has been removed: Essentials doesn't include Exchange at all. For that functionality, you're expected to subscribe to Microsoft Office 365, use a hosted Exchange service or buy and run your own Exchange server on a separate physical box — all at an additional cost.

Why has Microsoft axed this popular product? Wes Miller, an analyst at Directions on Microsoft, says he believes that Microsoft was faced with a difficult decision: Continue to include Exchange in its entry-level server product or forge ahead with its strategy of moving customers to the cloud — and the recurring revenue streams that this strategy brings.

"SBS was traditionally pushed out by VARS and service providers who would put in a Dell or HP box with SBS. But what these guys were doing was not the model that Microsoft wanted," Miller says. "What Microsoft has done has upset customers (and VARs) — but Microsoft wants to push people to the cloud."

Microsoft is playing a risky game, Miller says, because plenty of other options available are aside from using Server 2012 Essentials plus Office 365 or hosted Exchange. These include using Google's cloud-based Google Apps service for the mail, calendaring and other functionality that Exchange provides, or a Linux-based server that runs an Exchange-like service as well.

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