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Best way to configure an old server?

We just installed a new server in our office and I'm not sure what to do with the old one.  It still runs perfectly fine but I'd like to know if I should demote it or not.  I was thinking about joining it to the new domain controller but how should I do it?  Would DCPromo do the job?

The old server is 2008 Foundation, the new one is 2012 Essentials.


Thanks.
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How can I configure a backup server?

And yes, we'll eventually give it to a school.
Create a file share on it. Let other server use this location as a storage for their backups
Should I demote the old server and join it to the new server's domain?
yes it would be easier to do the configuration however I don't think you can join a windows foundation  unless it is a DC itself ...

can you format it and install another OS ?
I doubt it.  It's not feasible.
Not feasible from which perspective?
What are the hardware specs of the old server?
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That's fine.  I'll just demote it.  Is there a specific way to demote it?  My biggest concern is that I won't have a username/password to log onto it once it's back to being a basic server without AD/DS.
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Depending on it's hardware, you could use it for something else.