In the first step of the Database separation wizard, specify the SQL server to which you wish to transfer the contact management database and enter the credentials used to connect to it. The server can be identified through its name or IP address. It is possible to use a different server than the one containing the main database. The separated database may be hosted on all server types supported by Kentico CMS, i.e. Microsoft SQL Server 2005 or 2008 (including the free Express Edition).
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More resources can be found in On-line marketing guide -> Contact management -> Database separation.