If your office only needs shared folders, backups and remote file access, a NAS is enough and costs far less to run. If you need Active Directory, a database or a Windows-only business application, you need a server. Many offices of 10 to 30 people end up with both: a small server for applications and a NAS for files and backup.
What is the real difference between a server and a NAS?
A NAS is a storage appliance with its own operating system. It is built to share files and take backups, and it is managed from a web page. A server is a general-purpose computer that runs Windows Server or Linux and whatever software you install on it. The server is more flexible. The NAS is simpler and cheaper to own.
Which jobs need which box?
| Job | NAS | Server |
|---|---|---|
| Shared folders with user permissions | Yes | Yes |
| Backup target for PCs and Microsoft 365 | Yes, built in on business models | Yes, with backup software |
| Active Directory domain controller | Limited directory features only | Yes |
| Accounting or ERP with a SQL database | Not recommended | Yes |
| Windows-only line-of-business software | No | Yes |
| Several virtual machines | Light use on higher models | Yes |
| CCTV recording | Yes | Yes, with VMS software |
| Per-user access licences | None | CAL for every user or device |
Source: SourceIT research team summary of vendor documentation. Compiled 12 November 2026.
How do the costs compare for 20 users?
CALC, NAS route: one Synology DS925+ at S$1,260 plus four NAS drives. Drive cost depends on capacity; see our guide to IronWolf, IronWolf Pro and Exos. There are no user licences.
CALC, server route, licences only: one Windows Server Standard 16-core licence at S$1,275 plus four 5-user CAL packs at S$320 each. S$1,275 + (4 x S$320) = S$2,555 before any hardware, drives or setup. Server hardware is quoted per configuration.
The licence bill alone on the server route is about twice the price of the NAS chassis. That gap is the reason not to buy a server for a job a NAS can do.
Buy a server because of the software you must run, not because the office feels big enough to deserve one.
When should an office run both?
Run both when you have one or two Windows applications and a lot of files. Keep the server small, give it the applications and the directory, and put shared folders and backups on the NAS. The NAS can then back up the server too, which gives you a second copy on separate hardware. Our guide to backup versus disaster recovery covers what that second copy does and does not protect.
What about a mini PC as a server?
For very light workloads a mini PC can work, with clear limits on redundancy and remote management. We covered that in can an ASUS NUC replace your office server.
What else do both need?
Either box needs a UPS so a power cut does not corrupt data, and an off-site or offline backup copy. See why a NAS needs a UPS.
Buying in Singapore
Prices below were listed on 12 Nov 2026; prices change; ask for a current quotation.
- Synology DiskStation DS425+, S$853.20, for up to about 10 users.
- Synology DiskStation DS925+, S$1,260.
- Synology DiskStation DS1525+, S$1,800, for larger teams or more capacity.
- Dell Microsoft Windows Server 2022 Standard ROK (16 Core), S$1,275, and 5-user CAL pack, S$320.
- APC Back-UPS Pro 1500VA, S$886.25.
- Price on request: Lenovo ThinkSystem ST650 V3 tower server, HPE ProLiant DL20 Gen10 Plus, Dell PowerEdge R250.
To start, use Request for Quotation on the product page, call (65) 6978 3502, email Sales@sourceit.com.sg or use our contact page.
Frequently asked questions
Can a NAS replace a Windows file server? For shared folders and backups, yes. It cannot run Windows applications or act as a full Active Directory domain controller.
Does a NAS need user licences? No. Business NAS models do not charge per user for file sharing.
Is a server faster than a NAS? For file sharing over a normal office network the network is usually the limit, not the box.
Can I start with a NAS and add a server later? Yes. The NAS stays useful as file storage and as the backup target for the server.
