A. SMSE is a server license that allows the use of System Center Operations Manager (SCOM) 2007, System Center Configuration Manager (SCCM) 2007, System Center Data Protection Manager (SCDPM) 2007 and System Center Virtual Machine Manager (SCVMM) 2008 and becomes a good license choice when you are using virtualization because you purchase the license for the physical virtualization server and then you don't have to purchase separate licenses for the virtual machines (known as operating system environments--OSEs--in licensing speak) running on the virtual server, which can all run the SCCM, SCOM, SCDPM and SCVMM agents. The SCVMM 2008 Management Server is also included. Full details on the licensing can be found at http://www.microsoft.com/systemcenter/en/us/management-suites.aspx.