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We have 2 offices, one in Europe and the other in South East Asia sharing a common Microsoft AX database (MSSQL). The database server is in Europe and any query done is unbearably slow. I think one major cause is the network bandwidth at 10mbps downlink and 768kbps uplink. But I don't think upgrading bandwidth is the only solution.

May I know what do MNCs do to tackle this issue? What are the technical terms i can google for more information on this?

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The term you're looking for is replication - you end up with multiple database servers sharing the same content. – Andrew Feb 11 '11 at 1:30
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What you are thinking of is called database replication; here is a MSDN link for SQL 2008R2 on how to set it up.

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