
There's a lightweight IDE, which in the Beta1 seems very easy to use (although quite limited in functionality at this stage), and the whole package weighs in at about 15MB (assuming you already have. The file size limit is 4GB at the moment, but Microsoft are looking to increase that. WebMatrix also includes tools so that upgrading CE to SQL Server Express or higher is pretty much a button click.
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CE has a number of limitations compared to its grown up cousins, but those limitations are not likely to prevent WebMatrix causing the death of Access as the most popular viable free, easy to install web database. The new version has been evolved to support medium trust and can be deployed easily in a shared hosting environment. When you build your site within WebMatrix, the database engine is deployed within the bin directory, with the sdf data file residing in the App_Data folder. The default database for WebMatrix sites will be the new SQL Server Compact Edition (CE) 4.0, and the really great thing about this is that you do not need to negotiate with your web host to deploy it so long as they have. The Web Pages framework includes the new Razor View engine and programming syntax as well as many new helper functions. Alongside that is Web Pages - a totally new framework, which builds on top of ASP.NET. In its place is the cut down version of the next generation IIS.

Gone is Cassini - the lightweight development server that came bundled with the old Web Matrix, and which is still available as the development server within Visual Studio. However, the only thing that the new WebMatrix shares with its predecessor is the name.
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If you think you have already heard of WebMatrix, you are probably right: the forerunner to Visual Web Developer Express 2005 was called Web Matrix and provided an entry level free IDE for developing ASP.NET 1.1. It's totally free, and is designed to provide easier entry into ASP.NET development - especially for those used to scripting technologies like PHP and classic ASP or those completely new to dynamic web development.

WebMatrix is a collection of tools which includes IIS Express, an IDE, Sql Server Compact Edition, Razor, and a new programming Framework - Web Pages.
