Great topic and one discussed often on WBF. Both are important. I can not say it is 50/50 either way. I really think it depends on the quality of your DAC and Server.
In my case, I weight it 60% server / 40% DAC. A couple of years ago, I purchased a Lampi Pacific to replace a Lumin X-1. I was using a Synology NAS with a Lumin Mini when I got the Pacific. To be honest, I was disappointed with the sound of the Pacific. I was expecting leaps and bounds from the Lumin X-1. I knew the Lumin U1 mini was decent but not good enough so I began researching servers.
After a long study, I ended up going with a Lucas Audio LDMS. When I hooked it up to the Pacific for the first time, I just said WOW. I could not believe how much better my music sounded.
I have since upgraded to the Horizon and an updated LDMS. The LDMS just feeds the Horizon with so much detail and clarity. I will be getting a AC Kassandra 2 this fall so I will be interested to see how my music changes.
BTW, if anyone in the USA is interested in my other LDMS send me a private email. Lucas D owns it but I still have it. He thought rather than sending it back to him it could be sold to someone in the USA. It is an outstanding unit.