You will want to install a Microsoft DNS server if the following conditions exist on your network:
The number and location of computers running Microsoft DNS server that are needed to effectively manage DNS name data and name query traffic within your enterprise is a function of the size (number of hosts and their locations) of your network, the links between network subnets, and your network's security requirements.
When planning for the installation of Microsoft DNS server in your enterprise, there are several choices you can make. One option is to create one DNS zone that contains your entire enterprise domain.
The minimum number of DNS servers needed to serve each zone is two—a primary and a secondary¾to provide database redundancy. As with any fault tolerant system, the computers should be as independent as possible, for example, by placing the primary and secondary servers on different subnets.
There are some disadvantages to using a single zone. One of the disadvantages is that the primary DNS server may have a problem responding to polling from secondary DNS servers. There are several ways to resolve this problem, such as increasing the secondary refresh interval, configuring some of the secondaries to obtain zone data from other secondaries, and configuring DNS servers in remote locations (or on the far side of a slow network link) as caching-only servers. (Caching-only servers allow you to avoid the overhead of zone transfers to remote locations or over slow network links.)
Large networks which span multiple sites should not use a single zone but instead use multiple zones to manage their DNS services. This implementation would consist of one root domain with (1) a primary DNS server and one or more secondary DNS servers and (2) one or more zones (and sub-zones as needed), each with a primary DNS server and one or more secondary DNS servers.
A network architect usually breaks up a corporate DNS domain into multiple subdivisions to distribute the administration of parts of the domain to various entities within the enterprise.
Whenever possible, plan to align your Windows NT domains with the organizational structure of your DNS domain, zones, and subdomains.