Identity is the best and most scalable solution, BUT, if you need a sequence that is not an incrementing int, like 00A, 00B, 00C, or some special sequence, there is a second-best method. If implemented correctly, it scales OK, but if implemented badly, it scales badly. I hesitate to recommend it, but what you do is:
- You have to store the "next value" in a table. The table can be a simple, one row, one column table with just that value. If you have several sequences, they can share the table, but you might get less contention by having separate tables for each.
- You need to write a single update statement that will increment that value by 1 interval. You can put the update in a stored proc to make it simple to use and prevent repeating it in code in different places.
- Using the sequence correctly, so that it will scale reasonably (no, not as well as Identitiy :-) requires two things: a. the update statement has a special syntax made for this exact problem that will both increment and return the value in a single statement; b. you have to fetch the value from the custom sequence BEFORE the start of a transaction and outside the transaction scope. That is one reason Identity scales -- it returns a new value irrespective of transaction scope, for any attempted insert, but does not roll back on failure. That means that it won't block, and also means you'll have gaps for failed transactions.
The special update syntax varies a little by version, but the gist is that you do an assignment to a variable and the update in the same statement. For 2008, Itzik Ben-Gan has this neat solution: http://www.sqlmag.com/Articles/ArticleID/101339/101339.html?Ad=1
The old-school 2000 and later method looks like this:
UPDATE SequenceTable SET @localVar = value = value + 5
-- change the tail end to your increment logic
This will both increment and return you the next value.
If you absolutely cannot have gaps (resist that requirement :-) then it is technically possible to put that update or proc in side the rest of your trnsaction, but you take a BIG concurrency hit as every insert waits for the prior one to commit.
I can't take credit on this; I learned it all from Itzik.