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Best recommendation for Server for client

I have a client that runs a Hair Salon.  Their salon software really should be on a standalone server, but right now it runs on one of the three desktop Lenovos.  Each Lenovo are plenty powerful for a workstation, but should not be doing double duty as a server.  When things get busy, the whole system slows down because all three workstations are banging the program that exists itself on one of the workstations.

Of course they are concerned somewhat about price.  They do not need an ultra powerful server, but a moderately powerful one is needed in my opinion.  Can I hear suggestions on good, reliable, fast servers that I can suggest these clients to buy? And best Windows server OS too. Thanks.
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Perarduaadastra
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This is a bit like asking people what the best car is...

I'd suggest a Dell tower server, perhaps a T310. It's quiet, reasonably priced, and has more than sufficient grunt for the task you outline.
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Check out the HP Proliant Microserver G8. It was designed with smaller businesses in mind and is a good fit for specialty duties like you describe.
What are the specifications of the software?  Can it run on a server OS or just Windows XP / Vista / 7 / 8 ?

Alan
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Larry Struckmeyer MVP
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Does the application in question really justify the need for a true server? You would probably be able to just use a dedicated workstation. That would be the lowest cost feasible solution to the problem. The need for a server OS depends on future needs and requirements.
I know nothing about hairdressing, being a mostly bald man, so perhaps you could give us some idea what these computers do on a daily basis.  Presumably there is a customer database with appointment scheduling, and obviously email functionality, but what else?

Multimedia content to show customers different types of celebrity hairstyles they might choose?
Online booking portal?
Point of Sale software?

Without having some idea of the workload it is hard to make any suggestions.
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Customer database
Scheduling
Appointment setting
Online booking
POS
Assembling and printing reports
A couple of other tasks similar to a database program
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Can you please answer ALL the comments from ALL the experts not just the last one that posted.

Many thanks

Alan
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Sorry, I will fill in answers as I know them.  Just been very busy lately.

Windows 7 is OS
Backup is to a Cloud Service every day.
No data hosted off-site
Have to double check that the software can run on a server OS, but I believe it can.
No multimedia running on the software (no videos or heavy graphic stuff)

Dedicated workstation could be an option for sure, but I am going to check on prices for an entry level server as some of you suggested.  Staff workstations are very unlikely to increase which lends more credence to a fast workstation as server.  Apps are working with 64 bit Win 7, so that should be ok.  Email is simply handled by the ISP for their web site.  I plan on locating the this workstation/server or entry level server in a room in the back so it will be virtually untouched.

I will give a little time for any last thoughts and then I will award points.  The points may be split up a lot because there were many good answers and I really appreciate the help.
Just to comment on HP... the change in support policy is that Firmware/Bios updates will be free to any device under warranty or extended warranty, but there will be a charge for out of warranty servers.  While different from the historical perspective, it seems to make sense from the standpoint of the costs of developing such updates.

You could actually make the same argument that repair services should be supplied without charge.  After all... one did pay for the box.  But all of these things have related costs, which is why you see the warranty on hard drives drop every few years, only to be extended again by one or the other mfg. to gain perceived competitive advantage.
Does the software actually run on a server?  Have you checked?  Before you even venture down the road of buying a server, make sure it does work, or simply stick to a dedicated workstation and leave it at that - should be way cheaper.

Alan
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Thanks again for the great answers!