Q. Can I use the SQL Server component for Web-based business applications?
A. Yes, new with Windows Small Business Server 2003 is the ability for you to use the SQL Server component for an unlimited number of un-authenticated users. As long as you are un-authenticated, you also do not need a Windows Small Business Server 2003 CAL.
Does that mean i can buy a MS SBS , which comes with MS SQL and exchange and use it in webhosting environment as well and can offer SQL??
OR The sql version which comes with 5 Client license can i use that?
OR do i need to get 1 CPU license for that.
...because of the resource usage of both servers, especially MS SQL.
I'm intending this as advice to everyone, not just server4sale, lower-end system don't react well to MS SQL. You're better off with two low-end web servers (Celeron, even) with a beefy Dual Opteron (or Xeon, if you must) MS SQL server backend, than one beefy (to use the term again) server running both IIS/MS SQL.
I really agree with TechSolution, at the end of the day, the best practice is for SQL Server is to run it on a dedicated box cross connected to your webserver.
Here is my recommendation of why you should do this......I feel that you should ALWAYS run SQL on a Raid Array with redudency (1, 5, 10). I don't think a daily back up regiment is good enough in the case of a hard disk failure. And since RAID is preferred, it requires special tuning for random read and random write performance, along with other I/O tricks which are not really that good (or needed) for the webserver.
I think I have found the middle ground by running SQL Server and IIS on RAID 10. Gives excellent performance plus redudency.
But, most people run SQL Server and IIS together all the time. 99% of the Linux hosts have run Apache and MySql on the same box with no problems.
You really don't have to run a web server with high-end raid (like 1+0, which I would recommend for SQL for speed and security)... If it's the only box with the data, and you have no fail-over, then you might want a basic raid for the web server.