Before you can install the ArcSDE component and set up the geodatabase, there are a few tasks you must complete.

1. Determine the number of SQL Server licenses you need. This depends on which licensing mode you employ. If you choose client-access licensing, you need as many licenses as users who will connect simultaneously and one for the ArcSDE service.
2. Install and configure SQL Server.
The topics SQL Server initialization parameters, Minimize disk I/O contention in SQL Server, and Tuning memory in SQL Server can help you with this. Also consult your SQL Server documentation.
3. Decide whether to use a default instance of SQL Server or a named instance.
ArcSDE supports named instances in the same manner as a default instance. To configure ArcSDE to work with a named instance, just be sure to provide the full instance name (<server_name>\<instance_name>) whenever prompted to provide the data source, such as when using the Post Installation wizard, ArcSDE commands, or setting up a spatial database connection from ArcCatalog.
4. Make sure the Windows TEMP environment variable is set to a writable folder.
5. Choose a server collation that is appropriate for your locale.
If you are using a Turkish collation, please see the white paper Support for Turkish Data in SQL Server Geodatabases, which is available from the ESRI support site (http://support.esri.com).

The installation files for the ArcSDE component are on a separate DVD in the ArcGIS Server media kit.

NOTE: You must be a Windows administrator to install any software on the machine.

1. Insert the installation DVD into the drive.
2. Launch the installation wizard.
3. Follow the instructions in the wizard to install the ArcSDE component of ArcGIS Server.

The postinstallation tasks

• Create the ArcSDE geodatabase system tables.
• Create the ArcSDE administrator user if it does not already exist and give it necessary permissions to the database.
• Authorize the ArcSDE component.
• Set up and start an ArcSDE service (if you plan to use one).

Use the ArcSDE for SQL Server Post Installation wizard to complete postinstallation setup.

There are two slightly different sets of steps you follow depending on whether you are creating a DBO-schema geodatabase or an SDE-schema geodatabase.

When creating a DBO-schema geodatabase with the Post Installation wizard, do the following:

1. Choose to create a DBO-schema geodatabase.
2. Choose the connection method: Mixed-mode or Windows-authenticated.
3. The wizard will create the database.
4. Select configuration files and create the geodatabase schema. The wizard will create the geodatabase in the DBO schema.
5. Authorize the software.
6. Create and start an ArcSDE service (if you will use one).

When creating an SDE-schema geodatabase with the Post Installation wizard, do the following:

1. Choose to create an SDE-schema geodatabase.
2. Choose the connection method: Mixed-mode or Windows authenticated.
3. The wizard will create the SDE user and grant it the required permissions. It will also create the SDE user's default schema and spatial database and add the SDE user to them.
4. Select configuration files and create the geodatabase schema.
5. Authorize the software.
6. Create and start an ArcSDE service (if you will use one).