Peer to Peer or Server Based Networking

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Peer-to-Peer Networking vs. Network Domains
Difference Between
A network can be based on either a peer-to-peer level or server-based, also referred to as domain-based. To distinguish the difference, a peer-to-peer network, also known as a workgroup, is a network in which a group of computers are connected together to share resources, such as files, applications, or peripherals. The computers in a peer-to-peer network are peers to one another, meaning no single computer has control over one another. There is also no central location for users to access resources, which means that each individual computer must share their files in order for other computers to have access (Muller, 2003, p.411). “In a peer-to-peer environment, access rights are governed by setting sharing permissions on individual machines.” (Cope, 2002) On the other hand, in a domain-based network, the computers connected together are either servers or clients. All of the other computers connected to the network are called client computers. The server is a dedicated machine that acts as a central location for users to share and access resources. The server controls the level of authority each user has to the shared resources. When logging on to the network, users on client machines are authenticated by the server, based on a user name and password (Lowe, 2004, p.13).
Cost Differences
A peer-to-peer network is relatively less expensive and much simpler to manage and setup, than client/server because money does not have to be invested in establishing server hardware or software and the number of users are minimal. Since, a peer-to-peer network is only preferable on networks operating on at least five to ten computers that do not need heavy file or application sharing, the cost is reasonable. On another note, based on a network with fifteen workstations, using a peer-to-peer configuration may save money upfront, but it could cost a business a lot of time and money in the long run. The reasons for this include, the lack of a central organization, which make data harder to find, no central storage location for archiving files, which may degrade client workstation performance, and lack of overall network management.
Server-based networks are higher in cost because money is invested for dedicated servers, network operating software, and network administrators with technical expertise required for network management and configuration. On a small network consisting of fewer than five workstations, client/server architecture is not recommended and is very costly.

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