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Systems Management Server 2003 - SQL Licensing & Authentication Requirements

Greetings world -

A colleague of mine recently setup an SMS 2003 environment in VMWare and was having issues launching the SMS Service Manager and seeing collections data and so forth (just hourglasses).  I decided to help him and blew away all the Virtual Machines and started over.

When I did so, I made only two changes to the configuration.  I set the authentication mode of SQL to Windows instead of Mixed Mode, and I set the SQL Server 2000 licensing to "Per Seat" rather than "Per Processor".

Everything works now!  My question is, does SMS 2003 have a technical restriction that requires Per Seat licensing on SQL 2000 rather than Per Processor?  Or was it my change to the authentication mode that made it work.  Or both?

Any information anyone has on their experiences with SMS 2003 and SQL 2000 would be appreciated.  I'm wondering if the licensing made a big difference or not.
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SQL 2000 license mode does not matter  (I use per seat)

Authentication mode does not matter.   (I use Mixed mode.)
amendalaAuthor Commented:

When I install using Per Processor licensing no SQL and Mixed mode authentication, my virtualized environment does not function properly... hmm.

However, when I reinstalled using Per Seat and Windows auth, it works fine.  I do believe you are correct that the authentication mode doesn't matter because I have a production environment SMS 2003 setup with SQL Server 2000 running using Mixed Mode auth. and it functions.  Still wondering about the licensing...

Any input from anyone else?
This table shows that both SQL licensing types are supported:  

(easier to see in the link:  http://www.microsoft.com/technet/sms/2003/evaluate/faq/default.mspx#ECF

Q. When does SMS 2003 require a Microsoft SQL Server™ CAL?
A. The following table describes when SMS 2003 requires SQL Server CALs.

SMS license type SQL Server license type SQL Server CAL for SMS 2003 required
 Standalone per processor
 Standalone server/CAL
 Yes. An SMS 2003 server and every device managed by SMS, including desktops, laptops, servers, secondary site servers, and hand-helds, require a SQL Server CAL license.
SMS 2003 with SQL Server 2000 Technology
 SMS 2003 with SQL Server 2000 Technology or MOM 2000 with SQL Server 2000 Technology
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