Release of SQL Server 7.0 (with MSDE)

SQL Server 7.0 included the Microsoft Data Engine (MSDE), a free, redistributable version of SQL Server. While technically a precursor to Express, MSDE's limited tooling and complex installation often frustrated developers.

Significance

MSDE laid the groundwork for a free SQL Server offering but highlighted the need for a more user-friendly and feature-complete 'express' version.