Server Recommendations

I'm in the process of replacing one of our servers and would like the experts to provide recommendations.

The current server runs SQL Server 2008R2 on a Windows Server 2008R2 OS. There is really no Client Server applications that run and it is used primarily as a file and print server other than the database application.

Budget can be 10K or even a bit more. Primary concern I have with existing server is it's age and the way that it was configured with the C drive being too small.
bjbrownAsked:
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Larry Struckmeyer MVPCommented:
Do you see any bottlenecks in the existing?  Do you expect there to be any great changes in its replacements use?  If existing is satisfactory, perhaps a newer version with similar specs (with a bigger system partition) would be fine?
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PadawanDBAOperational DBACommented:
So my question is dis: do you need local storage for all your database files or do you have LUNs off a SAN ?
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