Web Services IIS 7.0 Options
In particular, the biggest issue with Server 2003 surrounded web services; it was always an optional install but you could only either click it on or off. With 2008, you have 10 times the number of pieces and parts from which you can choose. Internet Information Services (IIS) has always been a big target for hackers and malware to exploit, but with IIS 7.0 in 2008, you can shrink the threat because you’re not installing as many pieces.

Headless Server Core
2008 also has a new installation option called Server Core. The purpose of this is to let you install even fewer services than 2008 standard. It offers you a headless server with no gui interface. Similar to a Linux command prompt, there’s no point and click. This is especially helpful for running MS Hyper-V and for remote offices where you don’t need a full blown graphical interface.

IIS Management Enhancements
There are also management enhancements to IIS, specifically a more robust web interface for terminal services access. There is also a TS gateway service which will allow you to remotely access a terminal server or a server farm outside of the firewall securely—without any third party add-on products.

Hyper–V Virtualization Pros & Cons
Hyper–V, Microsoft’s new hyper visor, is meant to compete with VMware ESX, XEN server, and Virtual Iron. It has several enhancements to the old virtual server 2005 product but it’s not comprehensive enough to replace the VMware ESX and Xen servers of the world because there is still some performance overhead. It’s not yet a true bare metal hyper visor and lacks some enterprise features that other vendors offer such as VMotion’s live migration capabilities. Hyper–V also lacks advanced management, clustering multiple physical hots, and doesn’t provide HA and DR.

Though not meant for production servers, Hyper–V is a good fit for doing testing and development in lab developments; it’s similar to VMware’s free server product (VMware server) which rides on top of a Windows or a Linux OS. Some other enhancements include group policy and active directory which enables multiple password policies within a single domain and more group policy options for controlling or locking down other workstations and servers.

Final Considerations
Microsoft Windows Server 2008 has a lot going for it in the way of valuable enhancements. When considering upgrading, companies should look at Vista as an example which didn’t provide many compelling business reasons to make a move. (Although Server 2008 makes a Vista upgrade now reasonable since it allows you to take advantage of networking enhancements, file copy speed, and some security features.) Bottom line: Server 2008 offers enough new features and modular options—and business reasons and drivers—to make upgrading worthwhile.