A well designed and configured honeypot is a great asset on a larger network. In conjunction with intrusion detection and prevention systems the honeypot can provide greater security and help isolate and identify attackers much more easily. Honeypot software can record the traffic and connection attempts to it. Since the honeypot isn't used for any "real" applications or services, any traffic to it is suspect. More advanced honeypots appear to be exploitable and actually accept connections or traffic but do not accomplish what the hacker hopes. For example, a honeypot e-mail server might accept inbound messages and appear to be able to relay them, when in fact it does not.
We must take care that our honeypot is secure; a hacked honeypot could cause a lot of trouble, even if not as serious a problem as a hacked production server. Whether a honeypot makes sense for you and your network depends on the time and effort you have available to set up, monitor, and maintain it.