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Home-Based Computer Networks


March 19, 2001 (SmartPros) Current statistics say there are around 27 million entrepreneurs who operate a business from their personal residence in America. The growth rate of home-based business is soaring; the primary underlying fact for this growth of home-based business is the continual advancements in technology.



A large percentage of home-based businesses are service oriented so it is likely that many of you may be contemplating beginning a home-based business or you may already have one. Even if you are not, the information presented may provide some additional ideas on how to use computers at home effectively and efficiently with a home office network with minimal effort. Networks are not just for traditional business anymore.

Benefits of Home Office Computer Network
One of the largest productivity gains that computers have to offer is via networks. A network is merely a connection of two or more computers and the key concept to remember about computers is that it is always better to share. Networking today's computers is easier to set up than you might think and not as complicated as it once was. The benefits of a computer network will increase when additional computers and peripherals are added to the network. Some of the benefits are:

  • Shared computer files
  • Shared computer peripherals
  • Streamlined information flow
  • Saving on Software License Fees (Generally will not see a savings unless there are five or more computers).
  • If properly configured, lower administrative overhead.
  • Increased productivity.

Types of Networks
There are two broad categories of network architectures: peer-to-peer and client-server (sometimes referred to as two-tiered). Peer-to-peer is generally best suited for a smaller office such as a home-based business. In a peer-to-peer network, each computer in the network is treated as an equal. Each computer may act as a client and/or server and the setup does not offer great performance under a heavy load.

A client-server architecture can handle thousands of computers and in a client-server environment, each computer is generally a client or a server. Clients typically rely on other computers called servers to perform some type of operation for them. A server can be dedicated to perform one or more services such as storing files (file server), print server, and database server. Both of these architectures are widely used and each has unique advantages and disadvantages.

Advantages of Peer-to-Peer Network

  • No extra software to purchase. Peer-to-peer network capability is part of most modern operating systems such as Windows 95/98/NT/2000 and Macintosh Operating Systems.
  • Low setup costs
  • Low maintenance overhead
Disadvantages of Peer-to-Peer network
  • Performance is generally slower than a client-server network (depends on the number of computers in a network)
  • Physical location of computers should not be too far apart
  • Minimal security
  • Computers must act as a client and a server at times which reduces performance
Advantages of Client-Server Network
  • Can employ tighter security measurements
  • Faster performance
Disadvantages of Client-Server Network
  • Large setup costs
  • High maintenance overhead

Before Installing Your Network
The first thing I would recommend to anyone before they try to create a home-based network is to get a good book and read it. It really is not that hard, but it will require getting familiar with the terminology, hardware, software, and the general principles of networks.

For a home-based network, there are several network kits available in the market. Generally, they will come with all of the hardware to connect two or more personal computers together. One can find network starter kits for as little as $200. Most of the network starter kits use wires. Nevertheless, explore the possibility of using wireless technology for the home-based network.

Tech Tips for Home-Based Computer Networks

  • Tip 1: Network starter kits are ideal for individuals that are networking home-based computer networks, especially for those who are uneasy about the installation process. Some kits are better than others, so I recommend going to the vendor's web site before making any purchase in an attempt to evaluate their technical support just in case there are problems during installation. See if you can find a knowledge base, which addresses problems and provides solutions. In addition, it would be wise to call the company and speak with a customer service and technical support representative. This way, you gain an insight of future support for their products.

  • Tip 2: For the majority of home-based networks, a peer-to-peer network is adequate. When networking just two computers, a network hub is not necessary. However, if you choose to use a wire-based network, then I always recommend employing a network hub. By doing so, network performance will be better and it makes adding new computers and peripherals easier in the future.

Networking home computers is a great way to manage available resources and can save a considerable amount of time with minimal effort and costs. For a home-based business, network technology will provide an advantage over those not so efficient competitors and help you compete with larger competitors. Count the number of computers in the home and if you have two or more, then take the operation to the next level and get those computers in a network.

Originally published Feb. 28, 2000.

2001, Smartpros Ltd. All Rights Reserved

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