Demoting Active Directory and reverting to local log-in...

you can get a dell server for something like €500 with server 2012

"Also, is it possible to create a local user log-in script to ensure the network drives re-connect (file server) or am I out of luck on that one?"

On what basis will the local accounts have access to the network drives? Or is there any security at all on the network drives? It sounds like a bad plan and replacing the AD server would make much more sense. It's not that what you want to do is impossible but it's bad practise.

Upgrading the AD server will be less work in the short term and give you a lot fewer headaches in the long term.

Why not move the file services to the cloud too? Get a NAS for local backup duplication to be on the safe side. Actually, get three and keep at least one off-site. Better safe than sorry.

Hi,

Just adding to all above,which each one in its own are correct in covering the big picture...

The cost of exporting / importing emails,each user profile,desktops,documents,favorites is way out-coming the cost of a new server hardware and software.
Also,some applications,when installed,they register themselves in the registry a user path that might be changed when you remove from domain and create a new local profile.

IF you keep the server doing the AD...you'll need a DNS server on the Microsoft server and not on the router !

If all users will have local profiles,then the network profile for login to shared folders on to another... PCs (!??) will need to be replicated on each PC unless you enable the guest account.And,if oen user changes the password,it needs to be replicated to all other PCs.

No server.no central storage..how will you have access to shared resources,file/folders and printers ?

Having locally shared resources,such as files ,printers...when network users will access them...that PC acting as the shared resource provider it will run so slow that you'll feel like starting to cry out loud...

What about the senior management or the managers...they dont have already or want to have a shared folder where the staff wages,employment contracts,company files,cash forecast and so on to be shared across with the right level of share security setup for lets say,other users in the office !?

Having a server,allows you to install a central managed antivirus security solution,that creates and sends you daily email reports about the status of the network/PCs health !
Imagine for one day been blocked from sending emails externally,your broadband IP is blacklisted...without a central console,you will not know where the culprit / infected desktop is ,the one that keep sending a huge amount of spam,creating the black listing...
With a centralized console you can see which PC has protection disabled,which PC has been infected or is and act according in 1 minute !
Also,with a proper smart router,block EVERYBODY from sending externally outside emails on port 25,with the exception of the internal server !!

Running Line of Business accounting packages AND / OR allowing end users to keep /store locally important business related files and folders...is a big no-no ,fatal error ! If that PC goes belly-up...you're going to be held responsible for not having a central storage,central managed backup and so on...

From my experience,a NAS device is for backup and not storing live data !

Also,by moving to cloud based email...i hope you have tough about security,privacy,archiving,backup and data recovery.
Have you taking in consideration what happens when cloud goes offline ? Or,when the main single broadband line goes slow or offline ?
Or,my favorite one...when the boss is asking you why is it taking 10 minutes for that drawing to come to his inbox ,as it been sent by Joe from that corner of the office ... "hours" ago!!

Not lastly...can you list the business rationale why you're forced to get rid of a server !??
IS it really so bad that the business cannot afford a new server OR is your personal decision ?
Are you the business owner or a techie,based internal or external ?
Have you done migrations or you afraid of the Server 2012 ?
Have you taken in consideration the overall cost and risks arise from your decision to "skip" a server and look for alternatives ?
Have you discussed it with the business owner ? Are they aware of your constraints,worries,lack of experience or just not feeling right that the business should have an in office a new server !??

I mean ,is a small business,10 users.A crash of the new NAS replacing the server can create a huge downtime for them and been a small business,may affect their working time,end user wages / deadlines,senior management meeting/quotes ,external customers been unable to get access to emails/drawings/reports due to "sorry, but our system is down today" and not lastly...your reputation,CV and job !

There are never small networks from a technical perspective...when the business demands up-time and performance,reliability,security,protection and a trusted confident IT Person behind...there is no place for cheap solutions !
If the business cannot afford and/or justify a proper industry standard technical architecture / infrastructure...forget IT...back to pen and paper !

Regards