DHCP Server - cisco
Explaining how to Configure DHCP Server on a Cisco Router with Cisco Packet Tracer
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Every device that connects to a network needs an IP address. Network administrators assign static IP addresses to routers, servers, and other network devices whose locations (physical and logical) are not likely to change. Administrators enter static IP addresses manually when they configure devices to join the network. Static addresses also enable administrators to manage those devices remotely.
However, computers in an organization often change locations, physically and logically. Administrators are unable to keep up with having to assign new IP addresses every time an employee moves to a different office or cubicle. Desktop clients do not require a static address. Instead, a workstation can use any address within a range of addresses. This range is typically within an IP subnet. A workstation within a specific subnet can be assigned any address within a specified range. Other items such as the subnet mask, default gateway, and Domain Name System (DNS) server are assigned a value which is common either to that subnet or entire administrated network. For example, all hosts within the same subnet will receive different host IP addresses, but will receive the same subnet mask and default gateway IP address."
Recall from CCNA Exploration: Network Fundamentals that DHCP makes the process of assigning new IP addresses almost transparent. DHCP assigns IP addresses and other important network configuration information dynamically. Because desktop clients typically make up the bulk of network nodes, DHCP is an extremely useful and timesaving tool for network administrators. RFC 2131 describes DHCP.
Administrators typically prefer a network server to offer DHCP services, because these solutions are scalable and relatively easy to manage. However, in a small branch or SOHO location, a Cisco router can be configured to provide DHCP services without the need for an expensive dedicated server. A Cisco IOS feature set called Easy IP offers an optional, full-featured DHCP server.