Yes, it is. Right now we have a SAGE server running on a virtual Ubuntu 10.04LTS. It's accessible throughout our local network and even outside our school.
In my experience it's easier if you make SAGE's webserver listen on port 80. To do so start SAGE in a shell window, then issue the command
notebook(interface='',port=80)
I must confess there may be some security issues involved that, in our particular situation, don't matter much. I think, as long as the virtual machine is backed up and contains nothing but SAGE, the risks are minor. But if security is important for you, then consider this as a preliminary experiment.
Then, if you know the IP address xxx.xxx.xxx.xxx of your SAGE server, every computer on your local network can access the SAGE server by surfing to
http://xxx.xxx.xxx.xxx
I've read reports that Internet Explorer causes trouble sometimes, so I recommend Firefox. In our school students normally use IE8, with good results.
We further made things easy by defining a hostname in DNS, and publishing the server to the outside world through a Microsoft ISA server. All things considered, everything went very smoothly, and I was really impressed by how well the whole framework was thought out.