The question “server or cloud” has no universal answer. For one office cloud services are easier and cheaper; for another a local server is critical for data control and internal systems.
When cloud is more convenient
Cloud services are useful when a team needs quick launch, access from different locations, shared documents and lower initial infrastructure costs. Email, collaboration, meetings and basic file sharing often work well in the cloud.
Cloud still needs administration: permissions, multi-factor authentication, device policies, backup and access control do not configure themselves.
When a local server is needed
A local server matters when the business needs centralized data, local speed, internal applications, predictable access and control over storage. It is also useful when internet quality is not stable enough for all work.
Hybrid setup for many offices
Many companies use a hybrid model: Microsoft 365 for email and collaboration, and a local server or NAS for large files, internal databases and backup.
Security and backup
Whatever model is chosen, the company needs clear answers: where data is stored, who has access, how backup is checked and how quickly work can be restored after a failure.
How to decide
Evaluate users, data volume, critical software, remote work, internet quality, maintenance budget and acceptable downtime. For help see server services or IT support.