This is an in-place upgrade of a Microsoft Dynamics CRM 4.0 to 2011.
The CRM 4 is a multi-server deployment on:
- Dedicated SQL 2008 R2 Database Server (2-node cluster)
- Dedicated SQL 2008 R2 Reporting Services Server
- 2 Load balanced CRM Web Servers (Microsoft NLB, Windows 2008 R2)
Please note that an in-place is the riskiest upgrade, if something went wrong there is no going back! You will have to resort to DR and restore everything again. But also it is the simplest and least-costly upgrade.
If you have a heavily customized CRM and prefer a safer downtime-free approach, you can install CRM 2011 on a new server then use the deployment manager to upgrade a copy of your CRM 4 database via the "Import Organization" wizard. That way you can keep your CRM 4 up and untouched during the whole upgrade process, then switch to the new CRM 2011 installation once you have tested and became happy with it.