Does Your Business Need a Dedicated Server?

Most of my customers are small businesses with anywhere from 2 to 10 or 15 PCs in their office. These types of businesses usually have a peer to peer network setup with computers running some combination of Windows, anthing from 95 to XP. While this type of network is fairly reliable for basic file and printer sharing, as businesses grow they usually find that they need more from their network. This article discusses the differences between Peer to Peer and Server-based networks and provides some guidelines for when businesses should consider making the change.

Computer networks in small businesses can be broadly divided into two categories – Peer to Peer and Server-based. Businesses choose their network model based on many factors, including security needs, ease of administration, and centralization of data. This article will point out the differences in the two models and help you decide which is best for your business.

Peer to peer networks are just as they sound – a network made up of equals. Any or all systems on the network can act as servers. These networks are very popular with small business for many reasons. They are easy to set up and convenient for basic file and printer sharing. All versions of Microsoft Windows have peer to peer networking built in to the operating system. Setting up a peer to peer workgroup on Windows involves not much more than installing a common protocol and defining a workgroup name in the Windows Control Panel.

As simple as setting up a peer to peer network can be, there are many problems associated with this model. One major problem is security, especially with Windows 95/98. These versions of Windows offer very limited security, potentially enabling anyone who can access the network to read sensitive documents or maliciously delete files. If your business is running Windows 2000 or Windows XP on your workstations, security is greatly improved, but administration becomes more difficult. The drawback with peer-to-peer networking in 2000/XP is that a user account must be created on each computer for every user that needs to access shared files. If there are 10 workstations in a workgroup, someone has to create and manage up to 100 user accounts. This can make for an administrative headache.

If the security and administrative problems of a peer to peer network are causing concern for your business, you may want to consider installing a dedicated server. Doing so involves significant cost, but it can also make life much simpler for the network administrator. Installing a dedicated server can cost from $2,000 up to $10,000 or more, depending on hardware requirements. Fortunately, for most small businesses, the cost can be towards the lower end of that range. For a server with the capacity to handle 5 to 20 users, a standard PC with extra memory and a fast hard drive will suffice. I recommend a system with at least 512 MB of memory and a hard drive of 40 GB or more.

For server software, many companies these days are using Microsoft Windows 2000 server. This costs around $850 for 5 users or $1,100 for 10 users. For an additional $300, you can buy Windows 2000 Small Business Server. This includes Windows 2000, as well as Microsoft Exchange and many other features. Another option is Novell Netware. Costs for Netware are similar to those for Windows 2000.

What are the advantages of having a dedicated server? The main advantage is centralization of all network functions. In a dedicated server environment, the server can handle security, file storage, printer management, backups, and more. Each user can have a private space on the server to store personal files and shared folders can hold documents which are needed by multiple users. The server can host an internal web site for the company, handle email, calendars, contacts, and more. In short, having a dedicated server can make life much simpler for everyone.

At what point do most businesses need to think about installing a dedicated server? In my experience, at some point between 5 and 10 computers, a dedicated server makes sense. If your business is outgrowing your peer to peer network, you may want to consider moving to a dedicated server. While the initial costs are somewhat high, in the long run your business will benefit from improved efficiency.

Here is an interesting link I found on the Web that address this topic. This article is from Network Computing magazine and discusses the topic in much greater detail.

http://www.networkcomputing.com/netdesign/soho5.html