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Hi Jamal,
These 3 connections can all be used when you are accessing a local machine for your ArcSDE Workgroup/Personal geodatabases.
.\sqlexpress
localhost\sqlexpress
computername\sqlexpress
Alternatively, you can also use the dynamic TCP/IP port number for the SQL Express instance, for example:
computername,8774
We would recommend to use the following format so that it's clear to which machine and which named instance you are going to connect.
computername\sqlexpress
Thanks,
Ben L.