Network Models
The two options are Peer-to-Peer and Client/Server networks.

Requirements for setting up a basic peer-to-peer network are not complex. You must have two or more computers, network cards and cabling. With this equipment you can set up a simple peer-to-peer network without the need for a server. Peripherals such as printers and scanners can be shared or attached to any machine. However, if your requirements are more sophisticated you may wish to consider a client/server network.

Peer-to-Peer networks
Simply stated, a peer-to-peer network consists of fewer than a dozen computers networked together with network cards and cabling. A peer-to-peer network is appropriate in a small setting where two to three computers share programs and peripherals. In this topology one computer can act as both a client and a server, or every computer can act as both a client and a server. As a client, the computer can access the network resources shared on another computer.

This kind of network is relatively simple and inexpensive to install and set up. Windows 95/98 has the necessary protocols that run the network. Each machine needs a network card installed and configured, and then the machines are connected.

Peer-to-peer is ideal for an organization with limited resources, but there are limitations. Network traffic is an important issue. The system becomes slower and more difficult to maintain as the number of computers increases, and/or the traffic among them builds up. For example, if one machine accesses an application from another machine, it reduces response time on the host machine. This can be aggravating to the user of the host workstation. Dedicating one computer to service printing and other requests can reduce this problem, but the inherent limitations of the configuration still apply.

Data integrity and security are other issues to be considered. Share-level security based on passwords that restrict access to shared resources is the only option on a peer-to-peer network.

Client/Server Networks
You must create a server-based network if you:

A client/server model is more complex than peer-to-peer. In this kind of network, client computers (PCs) request service from a server computer (a host), which employs a server process or program to perform the tasks requested by the clients. Server programs generally receive requests from client programs, execute database retrieval and updates, manage data integrity and dispatch responses to client requests. The server process acts as a software engine that manages shared resources such as databases, printers, communication links, or high powered-processors. The server process performs the back-end tasks that are in common among applications.