A Small Business Server will typically combine the functions of a File Server, Mail Server, and Database Server within one server. It can also act as a firewall, protecting your data from unauthorised external access.

Microsoft allow you to buy a discounted bundle of Microsoft server applications called Small Business Server. The savings are significant compared to buying the individual server licenses. The Standard bundle includes Windows Server 2003, Exchange Server, Fax Server and SharePoint (Used for company internal website / intranet) and the Premium bundle adds SQL Server for databases and IIS for Firewalls and FrontPage to develop websites. The main advantage of SBS is that it gives a small business the software it requires at a significant cost saving compared to purchasing individual products. The only disadvantages are that it is limited to a maximum of 75 users and that the applications cannot be on separate physical servers.