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I am trying to move SharePoint Services 3.0 installed on one Windows server to another. The old and new servers both have different copies of SQL Server 2005 installed. After moving to the new server, I want to uninstall the old SharePoint services, IIS and old SQL Server.

My question is, will the backup and restore available under Central Administration be able to move everything ? or would i have to migrate the data in sql server separately?

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Moving your SharePoint installation from one server to another is not a trivial task and it depends on many things (customizations you made, 3rd party apps, configuration settings, hardware, OS platform etc.) I would advise you to carefully read this guide and to carefully plan your approach.

It's hard to say what's the best approach for your scenario as I do not have enough information, but I would install a new farm and then move content databases one-by-one.

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