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SQL Server for Embedded Systems -usage?

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Hi

We are buying a new third party app, which requires a SQL server backend. We are not going to install it on our existing SQL server, going to set up a new Windows 2008R2 VM and buy SQL Server. The vendor has stated we just SQL Server Embedded. Which I had never heard of before! He tells us that we can use embedded, as this SQL server will just be used by their app only, and that we will not be allowed install other databases on it.

I'm fine with the part about not installing other databases. But is it correct you can install embedded SQL this way? Any other limitations or pitfalls of using the Embedded version?

Thanks


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