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What is the difference between Sharepoint Server & Foundation. To what I know, Sharepoint foundation is one of the editions other being Standard & Enterprise (as seen here http://sharepoint.microsoft.com/en-us/buy/pages/editions-comparison.aspx).

I also know that Sharepoint Foundation is a free tool with basic features as being its limitations with Server being a full feature paid versions. Correct me if I'm wrong or missing something.

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Features missing in Foundation:

  • Business Intelligence
  • Audience Targeting
  • Improved Governance
  • Secure Store Service
  • Web Analytics
  • Enterprise Wikis
  • Tag Clouds & Profiles

for a detailed comparison check this helpful link.

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You may want to list out the requirements of your applications and then look into the numerous features of the SharePoint 2010 editions here - Foundation/Standard/Enterprise.

The Foundation edition is not "free" - it is added onto a Windows Server or Win7/Vista (all OS are paid for). SharePoint deployment on Win7/Vista is for development purposes only (not for production deployment). More on it here - Setting Up the Development Environment for SharePoint 2010 on Windows Vista, Windows 7, and Windows Server 2008. All editions have an additional hardware requirement of 64-bit operating systems (& SQL Server).

Technically, the primary differences between the editions are with the various service applications & their available features, for e.g., Business Connectivity Services, Managed Metadata, Search, User Profile, Office applications, PerformancePoint (BI) and others. See this diagram for more details regarding - SharePoint Services (top right corner table lists services features & editions).

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Here is the nice edition comparision matrix :

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