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Help with SQL Server licensing

Our non-profit needs to set up an SQL server to be accessed by an application running on a terminal server (TS is licensed for 25 workstations).
I have a 3 CD set of SQL Server 2005, but I don't know what I need for licensing.
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HilltownHealthCenter
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HilltownHealthCenter
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3 Solutions
 
AriMcCommented:
The cheapest (free) solution is the Express edition, if you can get along with the limitations:

   http://www.microsoft.com/sqlserver/2005/en/us/express.aspx

Using is allowed regardless of the commercial status of your organization, so it doesn't matter if you are a "non-profit".

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LowfatspreadCommented:
but you may as well go to the sql2008 express version (bigger databases allowed...)

http://www.microsoft.com/sqlserver/2008/en/us/express.aspx

where are you intending to place the sql server ?  it is not ideal to have it on the same server as your application code...
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HilltownHealthCenterAuthor Commented:
I am checking to see if the application will support the express version.

The SQL server will be standalone.

 I see that SQL 2008 R2 can can handle 10GB of data, but uses only 1GB of memory. I assume that this means that this version will be very much slower than the next highest (Workgroup) which can use 4 GB? I have an x64 server. Will there be any issue with express?

Is there any issue in express of users licenses?

In a more advanced version, how is licensing handled in a thin client environment?
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HilltownHealthCenterAuthor Commented:
Upping points. Looks like I will need all the help I can get here.
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HilltownHealthCenterAuthor Commented:
I am informed that I need the Standard version. So the question remains as to how licensing works with a Terminal Server.
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AriMcCommented:
With 2005 version there are three alternative licensing models:

 - Processor License.  Under this model, a license is required for each physical or virtual
processor that is accessed by an operating system environment running SQL Server
software. This license does not require any device or user client access licenses (CALs).

- Server plus Device CALs.  Under this model, a server license is required for each
operating system environment running an instance of SQL Server software, as well as a
CAL for each client device that accesses a server running SQL Server.

- Server plus User CALs.  Under this model, a server license is required for each operating system environment running an instance of SQL Server software, as well as a CAL for each user that accesses a server running SQL Server software.

More detailed information available in this FAQ:

http://www.microsoft.com/sqlserver/2005/en/us/pricing-licensing-faq.aspx

Approximate prices can be found here:

http://www.microsoft.com/sqlserver/2005/en/us/pricing.aspx

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HilltownHealthCenterAuthor Commented:
"Server plus Device CALs.  Under this model, a server license is required for each
operating system environment running an instance of SQL Server"

Does this mean that for each thin client session on the Terminal Server running the software will need a device license?
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AriMcCommented:
It means you need one CAL license for each device (physical or virtual) that connects to the database.

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