Character based data types, especially the var types varchar and nvarchar allow to declare a really big amount and just use a tiny bit and it doesn’t even hurt in SQL Server. However, it may in the application. Today I was working with a customer for the implementation of some third party software that would be doing analysis on the data. It would load the really over-dimensioned (n)varchar types in something like a (n)char.... you get the picture, huge amounts of wasted space. So from the databases side, a bit of restructuring was desirable. To see how much we can actually save, I created query to report on the character usage;
Be aware that varchar(max) and nvarchar(max) will give a max_length of –1 and that actual_max_length is –1 if no rows exist in the table or the column only contains NULLs (refer to the row_count and not_null_count to determine the situation).