Managing access to SQL Server and the database objects controls who gets to the data on the server, but what about while it is being sent across the network? For sensitive data, you might have a need to encrypt the data during network transmissions. The Multiprotocol Net-Library supports encryption between the server and client; however, this is provided for backward compatibility only. Windows 2000 has introduced better methods of implementing network security.
Internet Protocol Security, or IPSec, is incorporated into Windows 2000 and allows secure network communication. If SQL Server has been issued a certificate from a Certificate Authority (CA), it can use Secure Sockets Layer (SSL) to encrypt data transmissions. See the Windows 2000 documentation or speak to your network administrators to see which of these options is best for your site.