Microsoft SharePoint is software product from Microsoft Corporation providing complex functionality for group work like sharing documents, web publishing, corporate blogging, creating wikis, indexing database data and so on. The version of this solution dedicated for small companies, or company's department is called Microsoft SharePoint Foundation.
Microsoft SharePoint Foundation is lightweight version of Microsoft SharePoint Server designed to simplify corporate web publishing. MS Foundation is integrated and secure product which includes templates of websites, which can be quickly edited and published, tools for indexing data from multiple databases for fast searching, functionality for blogging, writing wikis, content management system, discussion boards, file sharing etc.
MS SharePoint Foundation sites are accessed by web browser. That's one of reason, why is this solution popular. System administrators don't need to install, update or maintain client site software. Ordinary user can simply modify layout of site by self. By reason that sites are powered by Ajax components, user feels like he or she is working on desktop application.
SharePoint Foundation is free to download and install as an add-on of Microsoft Windows Server OS (2003 or 2008), there is also special version for Windows Vista.
Microsoft Office SharePoint Designer is tool for rapid website development by combining predefined web parts (components). These web parts contains various bussiness functionality (graphs, workflows, calendars, contact lists..) and could be combined to the one page, related to needs of specific user.
Official Page
SharePoint Foundation on Wikipedia
Comparsion between free and server version
This post could've used some personal insight because now it sounds like a product description from a sales brochure.
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