While reading SQL Server documentation I came across the following statement:
EXEC sp_addlinkedserver
@server=N'S1_instance1',
@srvproduct=N'',
@provider=N'SQLNCLI',
@datasrc=N'S1\instance1';
What is the “N” before the string arguments? It seems to be optional as, without them, the statement works well.
From here
Some more information from stack exchange is here