SQL connection can be used when you want to build for instance a connection on a SQL database.
Select the SQL connection type and click Build.

New SQL Connection
For creating the connection indicate the server name of the SQL server, the name of the database and the authentication.

Configure SQL connection
The connection string is displayed in the window of the connection string. The connection string of a SQL connection includes the parameters Data Source / Initial Catalog / User / Password. With Test you can verify the configured SQL connection.

SQL -Connection String
You can find more information about creating Connection Strings at http://www.connectionstrings.com/.
Attention: If you use the storage type ST_Geometry for your SDE FeatureClass, you probably get an error message when querying the data with select * ("DataReader.GetFieldType(26) returned 'null' "). The reason for the error message is that the geometry type cannot be interpreted. The client application can only handle the ST_Geomtry field if you install the FeauturePack for the SQL Server specific version. The FeaturePack is called "SQLSysClrTypes.msi", has to be an 32bit msi and has to be installed on the client where the ePaper is running.