I'm supporting a very small law firm. Currently the firm has two attorneys, one paralegal, and one front desk person. They also have an aging 2003 Server box in the basement acting as domain controller, Exchange server, file server, and kind of a print server (though not well). I've wanted to get this server upgraded since I started working for them, but they're pretty tight with the cash.

My question for you guys: are we officially past the point where it makes any sense whatsoever to keep a server like this on site? I don't really see any advantage to having this thing sitting in the basement. They could do so much more with cloud services and it would probably make more financial sense too. They already pay me more money to monitor their server and keep it backed up than they would if they went with Google Apps. And for a little more than they pay me, they could go to Office 365 and get tons of Office Suite installs.

What do you guys think?