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I am evaluating SharePoint Foundation 2010 (free edition) for a prospect with 50 users. Does Foundation 2010 limit the number of users somehow? Thank you!

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No it doesn't; SharePoint Foundation is Free to use. Only the SharePoint Server (Standard & Enterprise) uses the Client Access License (CAL) model which is limited by CAL licenses per user.

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In addition, this CAL model does not technically limit your usage of SP. But, for legal purposes you must ensure you have the right amount of CAL for your scenario.

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