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We are a small Microsoft shop with 4 developers. We like the idea to have everything integrated and under the same SQL database but not to deal with too many features or a complexity we don’t need.
The other option would be to use two distinct third party tools. We also wonder if VS2010 version control and bug/issue tracking capabilities are comparable with the best third party tools on the market.
With TFS 2010, there is a TFS Basic version/configuration options. You can use SQL Server Express as the database, the install is simple and quick and you can install it on a client OS. It includes version system, work items and build system (no sharepoint, reporting…). Price should not be high, the target users for TFS Basic are those used to use SourceSafe. Also if you have MSDN, there is a change that it goes with it, so you would not have to pay extra.