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We have Windows Server 2003 R2 with SQL Server 2005 on it. We want to create a VM with Windows Server 2008 R2 with SQL Server 2008 R2. Now we want to move about 700GB worth of Data to the New Server. The biggest issue is we want to decommission the old server but keep the same hostname and IP address. What is my best route?

I had an idea but I don't know if it will work. I want to create the new VM and install SQL Server 2008 on it but keep it in a workgroup (don't join the domain) but name it as the same host. Then restore everything from the old SQL Server 2005 to the new Server. When the restore is complete just take old SQL Server 2005 offline and off the domain. Then bring this new SQL Server on the Network by joining the domain. What are your thoughts on this?

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Your solution would work if you don't use any windows authentication for permissions. Really, there's nothing wrong with joining the new server to the domain, setting everything up, and then un-joining the original server, and then changing the name and IP address of the new server.

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