MY DISCLAIMER: I, Vladimir Mazek, have not been given any private or confidential information regarding SBS R2. All of the information below is public information shared by Microsoft Corp with the public. The rest are my assumptions.

Microsoft Corp's Disclaimer: SBS 2003 R2 is currently in Beta, all terms are subject to change at any time.

Introduction

Much like its big brothers R2, the Microsoft Windows SBS 2003 R2 is the second release in the SBS 2003's lifecycle. Since its initial release in 2003 many things have changed for SBS and many new features have been added through its components service packs. In my opinion it is just Microsoft's way of providing something more current to the people that are just moving to either their first 2003 server or upgrading from the previous platform versions. In case you want to hear it straight from the horses mouth:

"The midlife kicker ahead of the Longhorn Server version of SBS which we expect in the 2007 time-frame."; He continues to say that "its a very tightly targeted release that adds a small number of features that we think are criticial to help you and Microsoft sell new first server features" — Guy Haycock, Sr. SBS Product Manager

That's a public comment from the guy that has to sell SBS 2003 R2, I think he sums it up pretty nicely.

Primary Opportunity

Think of it in terms of how you are selling SBS 2003 today. You are approaching the business owner and pitching them technology thats about three years old - at least in terms of the title alone. So the primary opportunity here is to engage my new accounts with a brand new product. It would sound something like this:

"Longhorn Server has been just a year away for the past two years, it will be on a brand new platform and it will take a little while for your applications and vendors to catch up. BUT, Microsoft just came out with SBS R2 which is based on a mature platform with a ton of support and the very latest technology available."

Sounds better, doesn't it? Sounds reassuring and to be honest I feel more confident making that pitch than the bleeding edge pitch that will come with Longhorn series. Remember, to someone that doesn't know any better you are selling them a Ford Focus '03 - they expect an '06 or '07. 

Secondary Opportunities with R2 Software

There is a lot more to SBS 2003 R2 than just "the latest and the greatest." There are also features in SBS 2003 R2 that are not available in the original release both in terms of software and in terms of the way it is licensed.

The software side includes all the service packs and security patches released to day. There is nothing more frustrating than installing an operating system and then waiting hours for a hundred patches to be downloaded. The beauty of SBS R2 is that it will be shipped with the SBS SP1 built in so you can skip right to Exchange SP2 and SharePoint SP2.

And oh is there a lot of sexy stuff in SBS Service Pack 1. First of all, security updates for everything in the SBS family. Service Pack 1 also brought the ISA 2004 to the mix with the Premium Edition, giving small business even more flexibility, ease of use, reporting and security to the SBS network. Following SP1 came the Exchange 2003 Service Pack 2 which clears _THE_ obstacle in the small business computing - packrat business owner and years of worst practices. You know the type I'm talking about very well. The ones that consider Outlook to be their personal file storage. The ones that use SMTP as a file sharing protocol. The ones that don't like to feel limited by their technology. Well, Exchange SP2 makes it possible to bump up that 16 GB limit all the way up to 75 GB. Throw in the Microsoft SharePoint Team Services SP2 and you've got the latest and the greatest the SBS can offer.

Now on to whats actually new in SBS R2 but not easilly available on the web. First off is the integrated WSUS or Windows Software Update Services. Key word being _integrated_. Yes, you can download WSUS for free and install it on your own after reading a white paper or two, going through blogs and newsgroups. With R2 this is seamless and it also includes the business group policies specific to the R2 deployment.

Finally, the cherry on the R2 cake - Microsoft SQL Server 2005 Workgroup Edition. This part comes included with the Premium Edition of SBS R2 and has been received by the SBS community with more criticism than fanfare. Personally, I've had to DBA SQL 2000 and I'm happy to see 2005. I like the SQL Server Studio. I like the ability to upgrade to the new SQL Server 2005 and just run it in a separate instance while I move my databases over and I like the fact that I can take my time but leaving databases in SQL Server 2000 compatibility mode without having to switch everything today. Many consider the Microsoft SQL 2005 WG to be "gutted" in terms of features when compared with Microsoft SQL 2005 Standard and look at this move as a step back because SBS 2003 included the Standard Edition of SQL Server 2000. However, Looking at the features of SQL Server 2005 Workgroup Edition compared to SQL Server 2000 Standard Edition there really is more functionality in what is coming with SBS R2.

Secondary Oppportunities with R2 Licensing

Licensing, licensing, licensing. Perpetual opportunity or something that will land you in jail at the next audit? Hopefully I can start to demystify the opportunity here by saying that it all depends on your timing and your needs.

In terms of timing there are really two opportunities to get into SBS R2 for less or nothing at all. First of all, if you are covered by SBS 2003 Software Assurance you'll get this upgrade free of charge. Remember that SBS 2003 R2 is not out yet but if you bought it after March 1st, 2006 you are covered by the "Technology Guarantee Plan" - you'll get it for free as well. This is a pretty nice move by Microsoft because it doesn't make people upgrade to R2 just a few months after getting SBS 2003.

Finally there is the matter of Expanded CAL rights. What expanded CAL rights allow you to do is bring in an _additional_  (that means one more than the one you have on your SBS) Exchange Server or SQL Server or both into the SBS 2003 network without having to purchase additional CALs. You will still need to purchase an additional license for the Windows 2003 Server and Exchange/SQL but the CALs are covered by R2.

Many Many more details on this in the blog on licensing and Expanded CAL rights.

Conclusion

Microsoft SBS 2003 R2 is a midlife release of Microsoft SBS 2003 that gives you some more features, latest security, latest servers and some licensing incentives. Above all it is still the first server opportunity that SBS has been marketed as for years.

As for when it will come out and how much it will cost - your guess is as good as mine. I've got $5 that it comes out on 7/10/2006 at the Microsoft World Wide Partner Conference Small Business Symposium. This is a big Microsoft event that they announced Small Business Specialist accreditation last year and I've heard Guy Haycock say WWPC about three times so my money is on that. On the other hand, if you're making business purchasing decisions on my $5 bet you need far more help than you realize.

So, excited about R2? Keep this in mind: It's not out yet. It's not free. It will not be 64bit. It is not viewed as a major release. It is not built on top of Windows Server 2003 R2. It is primarily for brand new SBS 2003 deployments and special needs.

Thats all. Keep an eye on this, next up WSUS in SBS R2.

Note: Based on public information from here, here, here and here . 

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