Concept of localhost

 In computer networking, “localhost” refers to the computer that a particular program is running on. For example, if you’re running a program on your own computer (like a web browser or local web development environment), then your computer is the “localhost.” On the other hand, if you’re talking about a MySQL database that sits on your host’s web server, then your host’s web server is the “localhost” in that scenario.

In the most simple terms, you can essentially think of localhost as meaning “this computer.” Just remember that “this computer” applies to the program, not necessarily to the computer that you’re physically using.


The concept of hosting is very simply that you’re using someone else’s hardware to run your instance of SQL Server.


SQL Server Instance is the actual service process you make connection with. Typical SQL Server installation consists of multiple named instances (test and production environment).

SQL Server database is the actual file (or files) hooked (attached) on one of these instances. Database files holds your tables, views, stored procedures and so on.

Your client makes queries for data in the database through connection with an instance.

In another words,
Instances are for logical and functional division of operations on the server level - security and performance reasons. Databases can be seen as containers for data which are hosted on those instances.


An SQL Server instance is a complete SQL server and you can install many instances on a machine but you can have only 1 default instance.

An SQL Server instance has its own copy of the server files, databases and security credentials.


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