Microsoft has released a web server edition of Windows Server 2008, called Windows Web Server 2008. This is a great product and the new version has fewer limitations than on Windows 2003. The memory limit has been increased (now 32GB on x64) and it’s now possible to install some applications on it, needed for web hosting, such as Windows SharePoint Services, Windows Media Services and SQL Server. SQL Server 2005 needs a hotfix to been installed on Windows 2008, read more about this in Bill Staples blog post below.
Windows Web Server 2008 is about half the price of the Windows Server 2008 Standard edition, so it’s great for hosting environments.