Help on choosing server software

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Howdy all,

Here is our company's situation:

I have limited IT experience and have been designation the "IT guy".

We currently are on a peer-to-peer network.
We need server to run MS SQL for ACT! and our document management software.
We have 9 users who will be accessing the DBs.
We will use the server for backups of desktop PCs.
We have limited budgetary resources, so cost is a factor.
We won't be using the server for email

Questions:

1) Do I need to run server software or can I just run WinXP Pro on the
server? Pros and Cons

2) For the DB applications, can I get away with MSDE instead of full MS SQL?

3) Any other thoughts on the situation/solution?

Thank you for your time and attention,

Brian





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