I am frequently asked to condense Microsoft’s detailed System Specifications for Dynamics GP.  Following is a ‘short list’ of server hardware requirements and recommendations that will give maximum performance at reasonable cost:

1. 64-bit hardware platform, Hardware RAID. Windows Server 2008R2 Standard 64-bit and SQL Server 2008R2 64-bit Standard Edition. 64-bit allows use of memory over 4GB without disk swap. 1 or more quad-core processors.
2. 12GB RAM minimum.
3. Drive configuration – The recommendation is OS on RAID1 (2 drives), Data on RAID5 (3 or more drives), which is a minimum of 5 drives. One additional often-overlooked factor is drive speed. Use 10,000 RPM drives as a minimum for the data drives, 15,000 RPM preferred. If it’s a matter of size over speed, lower the size (15k RPM is not available in all drive sizes) to maintain speed. For OS, 80GB drive space minimum, for Data, (3 (or more)) 132GB in RAID5, yielding 260+GB of drive space. For maximum performance, add one additional small 15,000 RPM drive and move the SQL tempdb to that drive. Isolating tempdb will boost SQL performance dramatically.
If you must back off the drive count, go for a RAID5 array of 10,000+ RPM drives in a single partition. In this configuration, partitioning data from OS has no good effect on performance, since all partitions are running on the same drives, and it is the division of tasks by array that increase performance, not just a cosmetic partitioning.

If the server is virtual, either Hyper-V or VMware architecture is supported. Allocate at least one processor and 4-8GB RAM. Drive configuration is not as critical, however better performance will be achieved if you use a fixed disk size rather than dynamic. If you do use a fixed disk size, please allocate sufficient space for Microsoft SQL database growth, installation software, and on-disk data backups. Depending on the number of GP companies and anticipated data volume, a 32-64GB System drive and 100GB data drive should be sufficient.