All about SSP in MOSS 2007
An SSP host the services that will be used ( consumed ) by any associated Web applications. These services include : Profiles Audiences Business Data Catalog Connections Search and Indexing Single Sign On Excel Services Usage Reporting A Web Application is a web site in IIS that hosts the Site Collections. When this Web application is associated with an SSP all the sites that belong to this Web application will now use the services listed above that are configured on the SSP. A Web application is also used to host the actual SSP. So you first create a web application - then create your first SSP - Then create anther web application - then create your first Top Level Site Collection to use this new Web Application. By default this new Web application and site collection will be associated automatically with your SSP. Prior to creating your Site Collections you should configure your SSP services as much as you can to ensure all is well just in case you need to...
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