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Need some help with with an MDS installation on Windows Server

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I need to deploy MDS on windows server on a box that does NOT have SQL Server on it and I'm unsure how to do that. I got the following advice:
"And recommended.  You just install MDS on the IIS box and in the MDS Configuration Manager provision the database on the database server."

That sounds cool but the question I have is, if I install MDS on a box with no SQL server, will I run into licensing issues? Do I need another SQL Server license?


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