Processor License
With this licensing mode each processor whether they are physical or virtual that the SQL server uses for SQL must have a license. It does not require a Device or User Client access license (CAL) each of which will be explained below.
Device CAL
This licensing mode requires a license for each of the Network Operating Systems (NOS) where the NOS is running a SQL instance rather it is a named instance or the default instance. It also requires you to have a CAL for each client machine that accesses the SQL server.
User CAL
With this licensing mode a license is needed for each NOS that is running a SQL instance rather it is a named instance or the default instance in addition to a CAL for each user that accesses the SQL server.
Note: If you are running SQL 2005 reporting services (SSRS) and it is installed along with SQL 2005 on the same server you do not need to buy any additional license.
It is also important to note here that the Processor license is the licensing mode most often selected for SQL 2005 server. The Standard edition processor retail license is about $5,999 USD per processor and the 5 User CAL license pack is about $1,849 USD. For the Enterprise edition the Processor license is more costly at about $24,999 USD per processor and for a 25 user CALL license pack it is about $13,969 USD. The Workgroup edition comes in at the cheapest where the Processor license is about $3,899 USD per processor and for a 5 Workgroup CAL license pack it is about $739 USD.