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I have a remote MSSQL server meant to centralize SQL for development projects. I hand out DB's and access to developers as they need it. I do not want to give them access to filesystem in any way (would require RDP access or opening several firewalls).

My question is how can the developers easily copy their local DB to the remote DB as they transit from local databases to remote shared database?

For reference this is how you would do it in MySQL:
mysql -h host -uuser -p db < db.txt

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Use SQL Management Studio Generate SQL scripts function (with Script data=TRUE - optional) on your database to generate SQL script, then run sqlcmd utility with correspondent options to execute sql commands from specified script from local system on remote sql server(s).

To automate database script generation you can download and install Database Publishing Wizard - it can generate scripts for database schema and/or data

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