There are two parts to ASI SmartBooks.
The database engine is a separate piece of software that can reside on any PC. For small companies, both parts of ASI SmartBooks can exist on one PC. Larger companies may want to move the database engine to its own dedicated PC to improve performance and speed.
ASI SmartBooks uses Microsoft SQL Server as its database engine.
Microsoft has two flavors/licenses of Microsoft SQL Server:
ASI SmartBooks can use either Microsoft SQL Server Express or Microsoft SQL Server as its database engine.
Which to Use?
Microsoft's rules are that a firm can use Microsoft SQL Server Express (the one included with ASI SmartBooks) with the following limitations:
If any of these three are not enough, then Microsoft SQL Server is required, and Microsoft requires that a license be purchased. To be precise, Microsoft's rules are much more complicated than this. Details are available on their web site. You can find out more here.
Most distributors will find that the Microsoft SQL Server Express included with ASI SmartBooks is more than sufficient for their business needs. Larger distributors and suppliers can also rest reassured that as their business grows, ASI SmartBooks can scale up with them!