On a Windows Server 2008 Standard OS, I would like to implement WSUS for a small organization, using the simplest possible configuration for WSUS. While looking at the procedure for installation of the service, I saw that one of Roles for the server would be IIS with a security service for "Windows Authentication". The description of this service in Server Manager includes the following sentence: "This authentication scheme allows administrators in a Windows domain to take advantage of the domain infrastructure for authenticating users."
My question, therefore, is whether having a Windows domain is required for implementing WSUS or can it be implemented in a workgroup only environment? I can add that in this particular situation there would be no authentication of users needing to occur in any case because only the administrator himself would be making use of the service on these machines.
Also, would WSUS also work for systems installed in virtual machines? Thanks you.