Sharing information has become a simple process with the arrival of email, simply attach a file and the recipient will receive the document you sent. However, in a small business, it is often necessary to share more than one file; You may want to share programs or data from programs, printers, a scanner, or just your Word documents.

A workgroup, also known as a peer-to-peer network, allows you to share files, printers, scanners, and other resources. Typically, with a workgroup, you make each workstation a member of the same workgroup and set up shared folders on one or more workstations. You can also set your printer to be shared. If you have an additional computer, you can designate it as a dedicated sharing computer. This computer then becomes a pseudo-server. It is not a “real” file server, but it works like one, with limited functionality.

A domain provides this functionality and much more, by having one or more file servers and workstations connected to the domain to access the servers that manage security and access rights. Think of a domain as a city, within which there are companies (file servers) and residences (workstations).

So … which one is right for you? If you have a small business with very few employees and you are not overly concerned about data security or folder access rights, a workgroup will work well.

Some things to consider with a working group:

1. It is better to have one computer act as a server and have the other computers share files from that “server”. This reduces traffic. If you have multiple computers sharing your drives and users are going back and forth from machine to machine to access data, there will be more traffic on your LAN, causing collisions and jamming things.

2. It is also a good idea, if possible, to have a computer as a dedicated server. This minimizes the possibility of a user “hanging” the computer they are working on, thus locking other users out of the system while it reboots. Also, if no one is using that computer while working as a server, it is likely to be less exposed to potential virus or malware attacks.

3. Any machine that works as a server must be protected by a good UPS; that is, a battery backup unit.

4. The machine acting as the server should have its Power Options disabled, Hibernation disabled, and its NIC (Network Interface Card) configured not to shut down to save power. Any of these features enabled could make the server inaccessible to workstations.

5. The server must have a backup device with backup software scheduled to perform unattended backups. Ideally, as part of a good disaster recovery plan, your network should also be backed up remotely or online. (What good is your backup if you can’t access your data?).

A domain gives you many more functions than a workgroup. This is an overview of the things to consider and the benefits of setting up a domain:

1. First, your workstations MUST be running Windows XP Professional, Vista, or Windows 7 Business Edition. These versions of Windows are designed to work with domains.

2. Your domain will include at least 1 file server. This file server will be a domain controller. As a domain controller, the file server (if you are running any version of Windows server) will host Active Directory. Active Directory is a database that will store the name of each user, with their access rights assigned according to the groups to which they belong. For example, a user could be a member of the Domain Users group and have access to files and folders, or they could be a member of the Domain Administrators group, giving them rights to anything on the network. Active Directory also keeps track of computers, so it knows not only which user is authorized to log into the domain, but also which computers they can attach.

3. Domain controllers use policies. These policies can simplify the administration of users and computers on the network, implementing rights and managing access when a user logs into the Domain.

4. Security and permissions are very granular in a domain. That is, you can be as general or as specific as you need in terms of giving users access to folders and files. A good initial and well thought out network design will help you simplify data organization and management as your network grows.

5. Returning to the server; a server must have redundancy for its disk drives. For small networks, a mirrored disk system is sufficient. For larger networks, a RAID 5 system might work better. In a mirrored drive system, your file server will house 2 identical disk drives. Both units will appear to you as one. On the server, you will see a C: drive. When you write or save a file, it is saved on both drives simultaneously. The benefit, of course, is that if one of the units crashes, you can continue to operate from the other unit. Many servers offer “Hot Swap” drives. This allows you to remove the faulty drive and replace it with a new one, without powering down the server. The server will detect the new drive and will be able to rebuild the data on the new mirror.

6. Another great benefit of having a domain is central administration. For example, you can install an antivirus program on the server that will update its virus definition files regularly. Server software can be deployed to workstations, and that software can be programmed so that all workstations have the same features enabled or disabled. Additionally, the server can “push” the virus definitions to the workstations, ensuring that all workstations are at the same version. This can also be done with other programs, it is not strictly for virus protection.

This is a bird’s-eye view of domains and workgroups. Of course, there is much more to them. Many books have been written on the subject. We hope this concise information helps you make an informed decision about your choice of domain or workgroup for your small business.