You can install MSDE. It is a Microsoft SQL Desktop Engine, which will allows you to run most of the MS SQL database, without the requirement for further development. Note, this should be done with the full MS SQL locally. However, there are certain limitation with MSDE. Anyway, you can run most of the small to medium sized MS SQL database. You can also add small query tool on your server to allow access of your data from the desktop. If you want to operate your own copy of MS SQL on the server, then you will have to choose windows 2008 server version, as your operating system. This allows development work to be carried out on the Windows server.
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