Well if he has some good Infrastructure and people who can maintain it, its not a problem if not. Count in the following..
If businesses critical application runs on that server [One will need a
Failover server.
Failover Internet connectivity.
Firewall
Power Backups.
Daily data Backups.
Best option as others have mentioned, go locate a good DC and get a dedicated server, if needed go with failover server too [Clustering]..
If still interested in Setting up own server, PM me will help you out............