Linked Servers allows to connect other database instances on the same server or on another machine or remote servers.It allows SQL Server to execute SQL scripts against OLE DB data sources on remote servers using OLE DB providers.The remote servers can be SQL Server, Oracle,PostgreSQL etc. which means databases that support OLE DB can be used for linking servers.
Uses and benefits
In many instances, the data represents 2 different logical sets of data; hence, you have 2 databases. The reason for using linked servers over putting both DBs on the same SQL instance would be to spread the workload out over 2 physical servers for scalability and performance. In another word, it brings the Distributed Queries in place.
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