Installing SharePoint Services is not a very simple decision. It involves planning. If you decide to deploy services you can install SharePoint services in one of the following scenarios.
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Single Server Deployment
One servers with SharePoint Services 2003 and SQL Server 2003
Small Server Farm
Two servers with SharePoint Services or Front-End Web Server installed on one machine and SQL Server 2000 on 2nd machine
Medium Server Farm
Two or more server with SharePoint services or Front-End Web servers and two machines with SQL Server 2000 for content and Configuration databases