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Recently we have had a few questions regarding if any version of Microsoft Dynamics GP is supported with Transparent Data Encryption. At this time Transparent Data Encryption is not supported on any version of Microsoft Dynamics GP. If you are interested in trying TDE on your own we highly recommend doing so in a test environment to uncover any possible issues. One of the possible concerns is packet loss between client machines and the SQL server. For this reason we would recommend extensive user testing if you are looking at testing TDE.
If you would like more information on TDE here is are a few great articles:
Transparent Data Encryption (TDE)
Implementing Transparent Data Encryption (TDE) in SQL Server
I don't believe packet loss becomes an issue if you are using the right version of SQL Server Native Client. It's important to note that although TDE encrypts the stored data, it doesn't encrypt the communications link between the server and the Microsoft Dynamics GP client. If you need to encrypt the data connection between the application and the server, you need to turn on SSL.
The one major concern I have is performance. If OLTP volumes are high, then chances are that data will be in a permanent state of encryption/decryption. Another thing to look out for is transaction logs since these are completely wiped out to prevent storing any clear text, so backup procedures using transaction log backups need to be revisited.
Mariano Gomez, MVP
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