Domain Server in System 800xA
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A domain is required for systems larger than 10 computers (at least this was the fact some years ago when Microsoft EULA restricted numbers of concurrent clients to IIS to 10).
Administration of accounts and passwords is easier with a domain. In a workgroup this must be done manually for each account and computer.
But apart from users, computers, passwords and some group policies a domain controller has a pretty slow life in an xA system...
Domain server is the central to the entire system which manages security aspects between computers, users with domain interactions(centralized security and administration).
ex:when a user logged into the computer which is a part of domain then active directory checks whether the user is a normal or admin user.
AD will enforce all group/security policy for all the users and computers in a domain.
When we talk to 800xA you should use domain when we have more than 10 computers to avoid security and administration problems since in workgroup you have to configure the security,users at each computer so its little cubersome to manage the total system hence domain is introduced to manage all computers,users centrally.