ADO .NET - SQL Client

I'm fairly new to ADO .NET concepts.
I understand that the framework gives a Data.SqlClient namespace with its collection of classes. I installed SQL Server on my machine, but not the SQL Client. And connect the database using from C# using these provider classes.

I deployed my application on other machines as well to connect to the database on my machine. I did not install the SQL Client that comes with SQL Server on any of the machines.

My question is - for a production envionment is there a necessity for SQL Client licensing for various users? Is mere installing SQL Server on a network server not sufficient?
How does this licensing - sql client installation - server set up work?
I tried to read a number of sites but I could not get a straight answer to my question.

I greatly appreciate response.


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