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Is one server better than two

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Recently upgraded a proxy server to 256MB of memory,800 MHZ pentium III, 9.2 GB hardisk, IBM product. It replace a Compact 128 MB of memory, pentium, etc...
We have a DSL line attached and we are using VPN connection for remote entry. We want to not only have single VPN connection but also a Server-to-Server connection with 3 remote offices.
1- Is the new server enogh?
2- Should we be using one server for single connections and the other for server-to-server? (The replaced server -Compact- handle up to 16 VPN connection with no problem at the same time)
3- If no. 2 would it slower because the DSL line is having two server to go to?
3- If no.2

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by jay

I think the problem in this situation is on your DSL bandwidth. The server with your specs can maintain proxy and VPN connection.
If your proxy connection to internet is high, you can get the problem with your server to server connection.
I suggest your old Compaq use for VPN router and new machine for proxy behind VPN router so you can manage the bandwidth to new server based on port

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