sp_serveroption sets the server options timeouts, net password encryption, rpc security model A, and rpc security model B, which affect connections with remote servers. Additionally, if you have set the remote procedure security model to rpc security model B, you can use sp_serveroption to set these additional options: security mechanism, mutual authentication, use message confidentiality, and use message integrity.
The options you specify for sp_serveroption do not affect the communication between Adaptive Server and Backup Server.
The following sections describe timeouts, net password encryption, rpc security model A, and rpc security model B. For information about the additional options you can specify when rpc security model B is on, see “Establishing security for remote procedures”.