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Connecting to an Ubuntu Server using Ethernet cables but no internet connection

Required to be configured is a DHCP server, with the server itself being the DHCP server and handing out the IPs to each machine.

Also required is the instructions to set the IP of the ethernet card on the server statically in a manner which it can be used to communicate with other systems as the DHCP server and as a file server.

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Static IP configuration should be put in /etc/network/interfaces. It is a text file, and the documentation for its format can be read by man 5 interfaces. By the looks of it, you probably need to put in there something simple like this:

iface eth0 inet static
    address 10.1.2.3
    netmask 255.0.0.0

Once done, submit sudo service networking restart to make use of the new settings.

For handing out replies to DHCP requests, you need a DHCP server, provided for example by isc-dhcp-server, udhcpd, dnsmasq and possibly other packages. I have used dnsmasq with success, and it appears to work satisfactorily even if uplink connection to internet (and real DNS servers) doesn't exist. See a how-to on the subject, it is rather straight-forward to set up.

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