The old-fashioned way
Good old-fashioned Ethernet remains the most widely used option, both at work and at home, and if you simply need to hook up a few stationary systems in the same room or you have easy access to overhead or subfloor conduits, it is still the way to go. Ethernet offers the fastest speeds, the lowest cost, and the highest reliability. Almost every new PC has an Ethernet port built in, and you can find PCI cards or USB adapters for older machines for $20 or less. Ethernet hubs and switches are equally affordable and can be daisy-chained when you run out of ports. Just make sure all your hubs, switches, and network cards support Fast Ethernet (or 100Mbps)--older equipment may support only the 10Mbps standard. If you want to move huge files quickly, then you may want to consider Gigabit Ethernet (1,000Mbps). It's more expensive than Fast Ethernet, but prices are dropping fast, and Gigabit Ethernet will help future-proof your network.

And the wireless way

Products that adapt to wireless networks Linksys WPC55AG dual-band Wireless A+G notebook adapter HP d325 business desktop Linksys WUSB12 wireless compact USB adapter Netgear WG511 54Mbps Proxim Orinoco 11a/b/g ComboCard Gold SMC SMC2532W-B 2.4GHz 802.11b high-power wireless PC Card The gateway to the wireless world Linksys WRT55AG Wireless A+G broadband router Buffalo AirStation 54Mbps wireless broadband router Motorola SBG1000 wireless cable-modem gateway Netgear WGR614 cable/DSL wireless router Wireless alternatives and add-ons Siemens SpeedStream 2521 power-line 802.11b WAP Netgear XE102 power-line adapter Phonex Neverwire USB adapter Siemens SpeedStream 2524 power-line wireless DSL/cable router

Increasingly, however, wireless is becoming a simpler and cheaper option for many businesses. That is especially true if you need to create a network that spans a larger area or is located in an older building where running Ethernet cables through the walls is costly and arduous. The only real choice for wireless LAN is Wi-Fi, and though it is easy to get confused by all of the various flavors out there, the recent approval of 802.11g makes things a lot simpler. We recommend 802.11g for small businesses because it combines the best of both worlds: the speed of 802.11a and the range of (and compatibility with) the more prevalent 802.11b. Plus, it is only marginally more expensive than 802.11b.

If deciding which type of wireless to pick has gotten easier, figuring out what hardware to buy has not. Theoretically, it is possible to build a basic network with an access point or a hub and a few adapters on the cheap, but this approach has many limitations and poses a security risk since it exposes all of your PCs directly to the Internet. Instead, we recommend that all small businesses start with a router/gateway that includes an 802.11g access point and a firewall. These cost about $150. Usually up to four PCs or Macs located close to the router/gateway can be connected directly to the built-in switch or hub using Ethernet cables, but additional systems can be added to the wireless network via a wireless adapter. These come in PCI, USB, PC Card, and even CompactFlash and SD formats, and most cost less than $100. Be sure to buy networking gear that supports the latest security standards, such as WPA (Wireless Protected Access).

Other alternatives
Though they are less popular, a few networking alternatives may be suitable for some small businesses. These include phone-line (HPNA 2.0) and power-line (HomePlug) networking--both of which piggyback on existing wires in a home or an office. Generally, the same types of routers, gateways, and adapters are available for these solutions, but they are a little harder to find and cost a bit more. Ultimately, rather than replacing wireless, these networking technologies will probably be best suited for extending wireless networks to offices or rooms that wireless can't reach. Several products are already on the market that combine phone-line or power-line networking with wireless.