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Server 2003 SBS in a non-domain environment

My client has a Dell server running MS Server 2003 SBS. He would like to just use this as an App server without the use of a domain. I had always heard in the past that SBS needs to be used in a domain as some kind of Domain Controller. Can he use 2003 SBS in a workgroup as an application server?
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Glen Knight
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Thank You both for the response. The client only has about 5 workstations and really has no security concerns. With that in mind, it is kind of overkill to have a domain running for the kind of use his office puts on the PCs. I was just wondering, considering he already has the server, I was looking for the best practice solution.

Thanks Again!