Why You Need a LAN

With prices plummeting and a growing selection of instant networks now available in computer stores, setting up a local area network (LAN) for your small business has never been cheaper or easier.

Most LANs will pay for themselves — even a basic network can save your company time, money

Choosing the Right LAN

To find out what type of network you need, answer the following questions:

• How many employees do you need to connect?
• Will you add more users in the future? How many?
• Are you going to use a shared Internet connection (T1, DSL, cable modem)?
• Is data security a major concern?
• Is there somebody in-house who can maintain the network, or will you need an IT professional to come in periodically?
• Can you afford an IT professional?
• Which employees will have access to various files, shared printers and other resources?

The most basic LANs support only file and printer sharing. All relatively new Windows and Macintosh computers include all the software you need to get this kind of network up and running. More advanced LANs use a central computer called a server; these networks allow computers to access a single database, run certain types of applications and share Internet access.

The most common type of LAN, a 10BaseT, uses the Ethernet networking protocol. Each computer on the network runs a length of cable to a central hub — a special device that directs all of the network traffic between computers. A 10BaseT network requires a hub, network interface cards for each computer and enough cable for all of the users to connect to the hub. A four-node hub typically costs between $50 and $200, while eight-node hubs cost $200 and up. It's easy to increase the number of computers on a network by adding hubs or by using more advanced switching equipment.

The next level of networking involves buying a server, which typically requires an administrator as well as server software such as Novell NetWare or Microsoft Windows NT. A server is basically a powerful computer that handles the flow of information among all of the other computers on the network. Buying the server, which can cost several thousand dollars, is only the tip of the iceberg. You'll also need a full- or part-time network administrator to troubleshoot and maintain the network. Expect to pay between $80 and $200 an hour for a seasoned pro, and beware of bargain administrators — a shoddy network will cost you much more in the long run than what you'll pay for a competent consultant.