SQL Server Everywhere is a light-weight version of SQL Server. It is a collection of DLLs that you can ship with your application. There is no SERVICE or SERVER running. The database engine will be embedded to your application and will work in-process.
This week I wrote about SQL Server Everywhere (which is recently renamed to SQL Server CE) in my column at SQLServerCentral. You can find the article here and the discussion forum here.
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