# Database Server Location

The Database Server Location dialog box contains two different database server locations:

1. SQL Server instance on the /baanerp/fullversion server (2-Tier).
2. SQL Server instance on another server using SQL Server client libraries (3-tier).

If you select the SQL Server instance on the /baanerp/fullversion server, the environment connects directly to the SQL Server instance on the same server.

Connection by an SQL Server instance on another server using SQL Server client libraries is normally used when the SQL Server instance resides on another server than the /baanerp/fullversion environment.