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Who Does What When Report Not working

I am currently working on a project where I am responsible for maintaining 30 plus project schedules that are to be rolled up and reported to upper managment. Reports that they would like to see are what a resource is doing and where we have resource holes that need to be filled (resource allocation type report). We do not have Microsoft Project Server. We currently do not know if getting Microsoft Project Server is feasible because our project team crosses 3 different contract companies as well as the governement. (I was told that you need to have one Exchange server to support the software functionality and this causes a problem with the firewall rules in place for the government and various contractors). I also don't know if Exchange server would resolve our reporting issue. (See below)

I have tried to use the who does what when report, however, I do not see a way to view all of the details of this report unless all projects are open. I have to have all projects open because my resources can be on multiple projects. The problem is that Microsoft Project crashes after opening more than 15 projects.

My detailed question: Will getting Microsoft Project Server allow me to generate the allocation report without having to open up all projects? Is there another solution out there for me incase I can not stand up a Microsoft Project Server? If the only solution is to stand up Microsoft Project Server I need to know this so that I can encourage management to invest in the time to resolve our integration/cross location issues.

Thanks in advance
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Dr. Thomas Henkelmann
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This is very helpful. Once last question. The issue is Exchange server, I do not have limitations with installing MS Project Server on a sharepoint server. With that being said will I be able to have the resources login to the web access and enter their actual hours by day? I was told that Exchange Server was required for this feature. Also We currently are using 2007 but can upgrade to 2010....is it worth it?
Just to confirm: you can use Projectserver 2007 or 2010 for project planning and daily time tracking of your resources WITHOUT Exchange server. In 2007 you could use any SMTP mail server to send notifications, in 2010 it requires Exchange Server with an add-on installed on the server to send these notifications. But the notifications are...well notifications only.
Too fast on the submit button...

If it makes sense to update to 2010 can't be answered easily. If you need/like/want the new features as portfolio management, workflows or SharePoint 2010 Business Intelligence or the new manual scheduling in the project client...then I would recommend to get some more information about the 2010 version and think about migration. If you "only" use project schedules and time tracking there are a few improvements but no radical change in 2010.