So, you started and currently run a successful small business. The question is do you need a server?

Many people at home have a network setup where they can share files and a printer between 2 or more computers. While this may be sufficient for small home based businesses and networks, a business outside of the home with 5 or more employees (or computers) may benefit from upgrading to a server rather than using a desktop computer as a "pseudo-server."

There are many advantages to having a server, but get ready to spend some money; the machine itself is more expensive and so is the NOS (network operating system--i.e. Windows Server 2008). Not only that, but you'll pay more for the expertise to set things up and keep them running smooth.

It may very well be worth it though. For one thing, servers were designed for file sharing and other similar activities. A regular desktop computer with more than 2 or 3 people accessing it at the same time can be slowed to a halt. On top of that, a business can have its employees work from home or other remote areas, which increases productivity if an employee wishes to finish up at home during the evening, and can even save money on office space by letting some employees work at home on a regular basis.

This scenario is becoming more common as commutes grow longer, more costly (think rising fuel costs), more aggravating, and also as workload increases beyond the standard 40 hours, and employees' desire to spend time at home with family increases.

Keeping everything (or almost everything) in one place simplifies life. Backups become easier, and so does implementing security: it's easier to keep anti-virus programs up to date. One can also manage and monitor employees' Internet access, control and/or restrict employee access to certain files (does HR really need access to accounting documents???), restrict log on hours, block spam, etc.