Hi All,
I'm sure this question has been asked before, so I apologize in advance - and yes, I did search for a response to my question, but did not find a complete answer. Here goes...

We're planning to setup TFS in a dual server environment (app & data tiers). All developers and QA have their own MSDN subscriptions (suite, dev, or test). I've been working with our IT department on this and they just got off the phone with Microsoft regarding CALs and here's the response:

"I just got off the phone with Microsoft and here is what I found out.

The licensing specialist told me that this [dual server - TFS/SQL] is a typical front<->back end configuration. There cannot be just 1 device CAL for the SQL server and 20 people connecting to the TFS server. Any user who accesses data through the TFS server to the SQL backend will need a CAL. So that means for every TFS CAL we have, if it connects to data on the SQL backend we will need a CAL for that as well. Basically to sum it up, 2 CALs per user, one TFS and one SQL2k5 CAL.

As for MSDN licensing, those licenses only pertain to a non-production environment. The TFS setup is a production environment that developers use to access data, it is not a test environment. MSDN would allow the user to install their own SQL2k5 server for whatever developing needs we have. MSDN and production CALs do not mix period. MSDN is only for development and testing, not for any production environments.

Visual Studio doesn’t provide any licensing for TFS or SQL2k5.

The only way we’ll be able to save any money here this is to decide how many CALs we need for the SQL server. There are still device, user, and processor CALs. So deciding how many users or devices would be the deciding factors on CALs. If there are many then a processor license would be the cheapest. Remember a processor license cost around $12k."

So, you can see my dilemna. The prices are a little more than I expected. In short, it seems as if the MSDN subscription takes care of the CAL from the client to the TFS box (or does it since this is a production environment?), but does not take care of the CAL to the SQL box (even though the user does not connect directly to the SQL box - the user connects the the TFS box which connects to the SQL box).

Can anyone verify this information or set me straight with this whole CAL issue? Does the CAL issue change if we switch to a single server deployment (TFS & SQL on the same box)?

UPDATE: Our IT guy called MS back and got this answer:
"For Visual Studio 2005 Team Foundation Server with SQL Server 2005 Technology:

License terms for SQL Server 2005 Technology. The software includes SQL Server 2005 Technology. You may run, at any one time, one instance of that technology in one physical or virtual operating system environment on one server solely to support that software. You do not need SQL Server CALs for that use. You may create and store any number of instances of SQL Server 2005 Technology on any of your servers or storage media solely to exercise your right to run an instance of that technology under any of your software licenses as described here."

Thanks in advance,
--Ed.S.