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What is a server? It's a really popular PC. It may run services that the other computers need to centrally organize their requests think QuickBooks. However, it's just a computer. If you would like to make compliance and security easier This is a huge benefit to people who are changing their passwords regularly you are It can be done ad-hoc by changing on each local SAM to match to keep life not so-horrible for the end user This is why we use Server software.
If you have no security or you want to show up on-site to change passwords every quarter, you may use a workstation to connect up to 10 people Because it is useful to have all your stuff in one place RAID is a great way to deal with that. Power Supplies fail Otherwise, it's just a PC running software.
If I am running Server Software, it has minimum requirements. If it is running services, those requirements must be accounted for. In Short, the more you use it, the beefier it needs to be. There are no right or wrong choices, there are only informed and uninformed choices. If you have fully considered the ramifications of your choice, then go forward with your choice and pay the piper that pipes. If your client wants to be educated Educate them all the way without prejudice.
Allow them to make the choices for their company that makes sense to them. In the end, you will be a trusted advisor who shoots straight and always has the client's back. Wish you well.