1. Fully integrated security system with the help of Kerberos.
2. Easy administration using group policy.
3. Scalable to any size n/w
4. Flexible (install/uninstall)
5. Extensible (modify the schema)
New features in Server 2003
6. Rename computer name & Domain names.
7. Cross –forest trust relationship.
8. Site-to-Site replication is faster.