Addition of Exchange Server to existing Domain - need advice.

I have a client who currently has a 2003 Svr running as a PDC and file/printer server, servicing approx 30 users. We will be adding an exchange server as they are currently running POP mail via OE and Outlook. I do not want to install exchange on the PDC, but rather add a new server for exchange. MY question is: Can I add an SBS box, but not make it the new PDC, that way minimising the setup and not having to re-connect clients to the new DC. Or...do I add another 2003 Svr with exchange and make it a member server? Any help appreciated.
TrentSlaterAsked:
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Carol ChisholmCommented:
SBS won't allow trust relationships with orther domains or forests.
So you could set up your SBS as a PDC in a new domain, demote your old PDC to an ordinary server and join it to the new SBS domain.
Or you can keep your old domain intact, add a new server with Exchange and move forward that way. It will cost more in licenses but leave you more flexibility in the long term
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TrentSlaterAuthor Commented:
If I set up a new SBS box as the new PDC, and demote the current server, do I need to re-connect clients to the new domain? i.e. Will I lose the old domain security of folders, printers etc...
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Lee W, MVPTechnology and Business Process AdvisorCommented:
SBS must be made your FSMO master (there's no such thing as a "PDC" in active Directory domain) within 1-2 weeks from installation.  You have no choice in this or the server will start rebooting itself hourly.  You cannot add an SBS server to existing domain and expect it to function flawlessly - there are documents for adding it to an existing domain, but SBS was designed to run in a certain manner and by inserting it into an existing domain, you can cripple certain functionality which will have an overall affect on the stability and reliability of the server.  If you get an SBS server, you will need to buy NEW Client Access Licenses as the standard CALs do not apply.

If the network is small enough, then you can get the SBS system and buy the Swingmigration.com tools and properly migrate to SBS.  This will reduce the overall management needs and the SBS CALs cover all other servers on the network.

I'm not sure what "long term" flexibility carolchi is referring to - if you have SBS, the SBS maximum user count is 75, but if you reach that, you can buy the transition pack which will remove this restriction for roughly the cost difference of the SBS discounts.
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Lee W, MVPTechnology and Business Process AdvisorCommented:
Yes, if you demote the existing domain, you will be REMOVING that domain entirely.  If you use the SwingMigration method (not free, but relatively cheap), then your permissions and accounts will migrate with it.
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TrentSlaterAuthor Commented:
Thanks for the info. Sounds like the best (easiest) plan would be to add a 2003 box with exchange as a secondary server and leave the current server as the operations master. The extra features of SBS, like RWW etc are not likely to be used a great deal. If I go this way what licensing issues do I have? Do I just need Exchange CALS for the new server or do I need extra 2003 Server cals for the new server aswell?
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Carol ChisholmCommented:
If you have per seat CALs in your existing domain, you can just buy a server and exchange license an Exchange CALs.
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Lee W, MVPTechnology and Business Process AdvisorCommented:
If you want to go by "sounds" be my guest... but I would suggest the proper way to do this is to try to figure out the costs involved in both and see which is cheaper.  Though you should also verify your needs as Exchange 2003 isn't available any more, EXCEPT through SBS - it's all now 2007, which requires 64 bit Windows and hardware.
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