Originally published May 22, 2025 by Tony Phung. Updated October 2026.
A law firm that handles confidential files needs somewhere safe to keep them. That’s a server, or at least managed file storage. Here are two options that suit a small to mid-sized firm of up to about 100 users.
Option 1: a server in your office
This is the traditional route: a physical server sized for your team.
- We usually recommend a modern processor with at least 16 cores, and plenty of memory if you run practice management software such as Esilaw or PC Law. We also often point clients to web-based practice management software. Web-based and cloud-hosted aren’t quite the same thing, so ask your vendor what they mean.
- For storage, fast NVMe drives are a good choice because they’re relatively affordable. For larger needs, solid state drives work well as long as there are enough IOPS (the reads and writes per second the disks can handle). We size the disk layout with you.
A typical layout
- One physical host running Windows Server 2025 (Standard or Datacenter edition, licensed to cover the virtual servers) with Hyper-V.
- A virtual server for sign in and policies (the domain controller). It controls who can sign in and what they can do. We never run applications on it.
- A separate virtual server for your applications.
- A separate file server for shared drives (the “Z: drive”). We usually suggest this if you have around 50 users or more.
- A firewall, network switches, a rack and Wi-Fi access points.
We run servers as virtual machines, not directly on the hardware, which makes backups and recovery easier. A virtual machine is not the same thing as a container, by the way. Backups follow the 3-2-1 plan, with an offsite copy.
Licensing is worth a quick word. Windows Server Standard covers two virtual servers on a fully licensed host, so a third usually means more licences or Datacenter edition. People and devices that connect also need Windows Server access licenses (CALs), which are separate from the server license, and remote desktop sessions need their own RDS CALs. We confirm exactly what you need for your setup.
Option 2: Microsoft cloud file storage
Cloud storage has become more affordable, and it can mean no server to look after. One example is Azure Files, signed in with Microsoft Entra ID (formerly Azure AD). Once users sign in with their Microsoft 365 account, it shows up in File Explorer like any other shared drive.
- You’ll want Microsoft 365 Business Premium or similar for its security tools, and you may have it already.
- Pricing changes often, so ask us for a current quote before you decide.
- It works best when we first check how your sign-in is set up, because the computers need to be joined to Microsoft Entra ID for the drive to show up the simple way.
Cloud doesn’t mean automatically safe. You still need endpoint protection, multi-factor sign in and backups, even when Microsoft holds the data. We can set up backups with tools native to Microsoft Azure, Veeam or others.
Which is better?
It depends on your software, your team and your budget, and we’ll tell you honestly what we’d pick in your shoes. Call (604) 813-7881 for a free consult with Tony. No pressure, no jargon.
