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Since FFmpeg is at times more efficient than VLC at doing the raw encoding, this can be a useful option compared to doing both transcoding and streaming in VLC. Even VLC can pick up the stream from ffmpeg, then redistribute it, acting as a server. Servers which can receive from FFmpeg (to restream to multiple clients) include ffserver (linux only, though with cygwin it might work on windows), or Wowza Media Server, or Flash Media Server, Red5, or various others. Theoretically you might be able to send to multiple receivers via multiple outputs but there is no built-in full blown server.
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