In case of Remote database Clients do not need to install SQL instance on machine. You can create a connection with remote server.and make connection string like
Data Source=10.0.0.28;Initial Catalog=omxintranet_DEV;Integrated Security=true
In case of local database ,You need to install SQL Server instance on client Machine.and use that instance to create connection string.
Quote:
what is local database(.sdf) and service based database(.mdf)
.SDF file is for SQL Server Compact edition while .MDF is for SQL Server database engine data file.
See
SQL Express .VS. Compact edition