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How to keep Canadian and US customers database separate in their country

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We have a need to keep MS SQL server data of users in their country, USA and Canada. We have servers in both country. We have a single web application that need to manage data for both and it has to be seamless. I don't want users to direct to separate country specific sub domains like http://ca.mysite.com and http://us.mysite.com. What would it take to achieve this? My front end web application is hosted in USA.What technologies do I need to know so that I can explore more? Is it something related to distributed transaction concept or some other useful features/tools are available in MS SQL server? Also, do you know if having VPN between 2 servers will help with the performance of the application when data is fetched from 2 servers?Chris

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