Microsoft SQL Server 2005 is a suite of relational database management system (RDBMS) products providing multi-user database access functionality.Component services include integration (SSIS), reporting (SSRS), analysis (SSAS), data quality, master data, T-SQL and performance tuning. It includes support for managing XML data and allows a database server to be exposed over web services using Tabular Data Stream (TDS) packets encapsulated within SOAP (protocol) requests.
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I also agree that, to the extent you can normalize the data, you probably should. Normallizing the data should provide space and speed benefits, especially if you are going to provide some sort of web (intra- or inter-net) accessibility.