There's a server*, main data store volume, time machine volume, and local backup volume. All the volumes are physically independent devices.
All staff work from the main data store, and TM backs up the entire thing hourly. It's handy for those accidental deletes, etc. and is a popular feature.
Carbon Copy Cloner handles local and offsite backups duty.
* the server is sometimes hardware dedicated to TM, sometimes not.
As for details, make sure the TM server is on static IP on all interfaces. Disable sleep. Should work like a charm.