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If a network has 1 server, do you still need a domain controller?

    Suppose I  have a network with just 1 Server (running Windows Server 2008) and about 30 client PCs (running XP Pro). Does that server have to be a domain controller?
     On the one hand, I would think that every network needs to have a domain controller. But on the other hand, if you're not going to be replicating with other servers (because there are no other servers), is a domain controller still necessary?
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    Right now the 1 server we have is Windows Server 2003. But soon we will replace that with another server that has Windows Server 2008. So I asked that question in preparation of when the new replacement server comes. I just checked our current (2003) server, one of its roles is that of a domain controller, so I guess it is a domain controller.
     For some reason, I thought you could have a domain in which the 1 sever is not a domain controller (it would just be a member server), but I guess that is impossible, right?
     
Since your current server is a DC then you are going to have to migrate to 2008. Below are step by step guides on migrating over to 2008.


https://www.experts-exchange.com/questions/23665224/Windows-2008-Server-Migration-From-Server-2003.html