DHCP server is almost an essential part for running an IP network. It allows system administrators to not assign an IP address manually to every device in the network.
Internet Protocol (IP) defines how devices communicate within and across local networks on the Internet. A DHCP server can manage IP settings for devices on its local network, e.g., by assigning IP addresses to those devices automatically and dynamically.
Without a DHCP server, a computer or other device on the network needs to be manually assigned an IP address, or to assign itself an APIPA address (a Windows feature to allow computer to self-assign an IP address with no DHCP server available), the latter of which will not enable it to communicate outside its local subnet.

DHCP server can assign networking parameters to client devices automatically, thereby making it much easier to administrate a big network.

Hence DHCP is highly recommended to be used in any networks consisting of more than a few devices.
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