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.local vs ad.domain.com

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I just started reading some discussions but wanted some new feedback.

In the past I have installed SBS 2011 and they set it up as domain.local

With some of the newer Server 2012 installs I have done I have done either domain.local or ad.domain.com.  I generally make the netbios name just domain 

What is the correct way?  

This site I am doing will be virtualized with DC, Exchange Server, Application Server and Terminal server.  


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