Hi cra2323,
if we already have a SQL database for SEPM 12.1 stored on our SQL server, if we replicate the SEPM 12.1 server, it will create another SQL database for the new server correct?
--> Yes it would create another database for the new server.
Should we setup the new server as using an embedded database instead before we replicate this way it does not create another database or am I off track here?
--> Yes it won't create another SQL database. It would create only embedded database on SEPM installed machine.
Check this article as well
Hot to move SEPM from one server to another server.
https://www-secure.symantec.com/connect/articles/hot-move-sepm-one-server-another-server
Helpful other articles:
Best Practices guide for moving the Symantec Endpoint Protection Manager SQL Server database from one drive to another on the same machine
http://www.symantec.com/docs/TECH106213
Best Practices guide to moving the Symantec Endpoint Protection Manager SQL Server database from an existing SQL Server database to a new SQL Server database
http://www.symantec.com/docs/TECH104723
Best Practices guide to moving the Symantec Endpoint Protection Manager SQL Server database from an existing SQL Server database to a new SQL Server database
http://www.symantec.com/docs/TECH167300