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We are looking at hosting our client's data on our own system and using the MS Sync Framework to replicate data with a SQL Server instance on each client's site. Each client might have on average about 500MB of data and there could be up to 1,000 client sites, se we would have about 500GB of data overall. Data changes will need to be replicated in both directions.

Has anyone attempted a distributed system with this number of clients? Is there a practical limit?