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Windows 2008 R2 as a Workgroup Server

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This is a very basic question, but my server guy insists Windows Server can only be configured as a domain server.  I have found many discussions here and in other places talking about configuring it as a workgroup, but I need a definitive answer I can take back to him.  Is it possible to configure a Windows 2008 R2 Server Standard as part of a Workgroup with no domain?

The users have two applications with databases that need the databases centralized, some file sharing, and only 5 computers connected internally with 2 full time and 3 part time remote users (the three part time are among the 5 computers in the office).  They want to keep it as simple as possible, there are no big security threats/requirements and everyone is trusted by everyone else.

They did get a copy of Remote Desktop, but the debate is still going on whether they need it or not.

I know a fair bit about Windows and I'm a Windows programmer (C++), but I haven't worked with NT Server since NT 4 so I've very out of date.  All the work I do is with the workstation versions of Windows (industrial computers for the most part).


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