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TFS Express 11 beta installation also includes SQL Express installation for its database. Can I redirect it to a shared SQL 2008 server or was it designed to work with SQL Express exclusively?
You should be able to use it with a normal MS SQL Server as well, there is no Feature that Express has that a normal one does not. It is simply bundled with the Express version since it not necessary to have a normal SQL Server.
Also, why should MS stop you from paying a license for at least one of the two products 😉
UPDATE
Apparently I was wrong, at least in the beta it is NOT possible to use anything else but the SQL Express, the others are explicitly not supported.
See here:
http://blogs.msdn.com/b/bharry/archive/2012/02/23/coming-soon-tfs-express.aspx
http://blogs.msdn.com/b/chaks/archive/2012/03/05/getting-started-with-tfs-11-express-beta.aspx