My Two Cents. As an armchair analyst, its fun to get it right once in a while. (Translation: I told you so.)
Why put a network together? In any company with two or more computers, it is always a good idea to share resources like printers, modems, memory space and files to be more productive; and with e-mail, communicate more effectively. With a network, you really dont need that extra printer. You really dont need that extra modem. With one modem, you just need one line out to the Internet whether it is a telephone line or broadband line. (Actually, a business owner has to challenge his office workers if they really need a computer each; maybe you can use a kiosk computer concept to increase the number of users per computer.) Think about what they need based on what they do.
Here are some buzzwords you might encounter:
LAN. Local Area Network. Normally, computers connected by physical cables in one location.
WiFi. A LAN without wires using radio frequency to transmit data.
WAN. A wide area network with multiple locations using a mix of LANs, wireless and/or leased line connections to stay together.
VPN. Virtual Private Networks is a WAN using the Internet as the connection and VPN software to keep non-members out.
What are the downsides? Or what do I have to watch out for? Once you have a network, the chances of getting a virus and the chances of getting your files hacked (unauthorized access) just multiplied. You now need to make sure you invest in a few protective gear: firewall (to prevent hacking), virus control, spyware control.
What hidden costs are involved in setting up a network? Maintenance cost of both hardware and software needs to be factored in to any budget. Whether your maintenance is from in-house tech staff or outsourced maintenance agreement, it is a good idea to earmark some funds for preventive maintenance. Some software need annual maintenance costs, too.
Backup. When I visit a client, my favorite pitch is Backup Protocol. Nine out of 10 clients have never thought of a physical disaster. They usually fall into a false sense of security that if they have all the security and utility programs, their data are safe. Dont forget Murphys law will always come for a visit. A fire or an earthquake can always be a possibility, so redundancy or backup protocols are always a prudent way to go.
This was top of my mind when I was helping Dole Asia with the Y2K scare five years ago. I personally thought the bananas did not really care whether it was 1999 or the year 2000; they would still grow. As strong as my logic was, the board of the US parent did not want to hear about it. They had the pressures from Wall Street to worry and address Y2K. In the long term, it was a good idea to protect your data from disaster whether it is perceived or real.
My Two Cents. Always back up. I recently lost my Palm Pilot in a cab. I was calm about it because I had all my data backed up in my PC. (Or was I just looking for an excuse to buy a new one to replace my five-year-old PDA?)