The expected proliferation of local-area networks has created a need for network database servers. It is reasonable to view local-area network data servers as extensions of backend database systems. This paper addresses several critical data-server design issues: distribution of functionality, high availability, security, and performance. Particular consideration is given to applying experience with backend databases to the problems of data servers. Several design alternatives are proposed and evaluated in terms of their impact on reliability, security, and performance in a gross sense. The concluding section emphasizes the need for greater practical experience with local-area networks in order to more accurately weigh the tradeoffs of different data-server configurations.