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When using Data Transformation Services (DTS) to transfer data between a Desktop edition SQL Server and a Standard, Enterprise, or Small Business Server (SBS) edition of SQL Server you may receive this message:
Replication jobs between the two servers may fail with the message:
The license for the installation of Microsoft SQL Server on your source and destination connections does not permit the use DTS to transform data. Please refer to your license agreement for more information.
These messages will appear when the non-Desktop edition SQL Server is configured for Per Server licensing.
Distributor must be running in Per Seat (Named User) licensing mode to use this replication feature.
The desktop edition of SQL Server 7.0 is only licensed for use on client computers that are covered by a Per-Seat Client Access License (CAL); therefore, the server that the desktop edition communicates with must evaluate connections based on the Per-Seat licensing model.
If you encounter this message, use the Licensing program in Control Panel on the computer where the non-desktop edition of SQL Server resides (the server with which the desktop edition computer communicates) to change that SQL Server from Per-Server to Per-Seat.
The SQL Server 7.0 Books Online Article "SQL Server 7.0 Databases on the Desktop" states:
Any user who has a per-seat Client Access License for the Small Business Server, Standard, or Enterprise editions of SQL Server can install a Desktop edition server.This information can also be found in the Books Online articles "SQL Server Editions" and "SQL Server 7.0 on Windows 95 or Windows 98".
The Desktop edition of SQL Server 7.0 can not be purchased separately. It is intended for use by clients that need a local database to store data when disconnected from a central SQL Server (for example, a mobile sales force). To deploy the Desktop edition in this way, the central SQL Server must be configured for Per-Seat licensing.
In SQL Server 7.0, the DTS and replication features enforce this licensing restriction. In future versions of SQL Server other utilities may reflect the restriction.