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Max Server Memory in SQL Server refers to the maximum amount of memory that the SQL Server Database Engine can consume. It is a crucial setting as it determines the upper limit of memory usage by SQL Server, preventing it from consuming excessive system resources and potentially causing performance issues or even system instability.
Setting an appropriate Max Server Memory value is vital to ensure optimal performance of SQL Server. If this value is too low, SQL Server may experience memory pressure, leading to slow query performance. On the other hand, if set too high, it can compete with the operating system for memory, causing resource contention.