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How to upgrade SharePoint 2007 to 2010

A SharePoint solution consists of 2 parts:

  • What is installed in production
  • The solution in Visual Studio

The infrastructure consultants recommend running in the in place upgrade. But then what happens to the solution, and what happens next time you try and deploy the solution.

The dev consultants recommended upgrading the sollution, installing to new production environment and transfering contents.

Question is how to upgrade? Is one of these approaches better, or is there another way?

Thanks

Shiraz