- DHCP allows network administrators to centrally manage and automate the assignment of IP configurations to devices on a network. The DHCP server provides clients with an IP address, subnet mask, and default gateway. - To install a DHCP server on Windows Server 2012, an administrator selects the DHCP server role, configures authorization for the DHCP service, and restarts the service. - The advantages of DHCP include centralized IP management, automatic client configuration, support for various client types, and elimination of duplicate IP addresses. The disadvantages include potential security issues, single points of failure, and additional configuration requirements for multi-segment networks.