Why not use varchar(max)?

My answer to this, isn't about the usage of Max, as much as it is about the reason for VARCHAR(max) vs TEXT.

In my book; first of all, Unless you can be absolutely certain that you'll never encode anything but english text and people won't refer to names of foreign locations, then you should use NVARCHAR or NTEXT.

Secondly, it's what the fields allow you to do.

TEXT is hard to update in comparison to VARCHAR, but you get the advantage of Full Text Indexing and lots of clever things.

On the other hand, VARCHAR(MAX) has some ambiguity, if the size of the cell is < 8000 chars, it will be treated as Row data. If it's greater, it will be treated as a LOB for storage purposes. Because you can't know this without querying RBAR, this may have optimization strategies for places where you need to be sure about your data and how many reads it costs.

Otherwise, if your usage is relatively mundane and you don't expect to have problems with the size of data (IE you're using .Net and therefore don't have to be concerned about the size of your string/char* objects) then using VARCHAR(max) is fine.

There is a blog post about why not to use varchar max here

Edit

The basic difference is where the data is stored. A SQL Data row has a max size of 8000 bytes (or was it 8K). Then a 2GB varchar(max) cannot be stored in the data row. SQL Server stores it "Out of row".

Therefore you could get a performance hit since the data will not be in the same place on disk, see: http://msdn.microsoft.com/en-us/library/ms189087.aspx

If you are working in an OLTP environment, you are all about the performance. From overhead and tuning concerns to indexing limitations and query bottlenecks. Using a varcahr(max) or any other LOB type will most likely contravene most design best practices, so unless there is a specific business need that cannot be handled through the use of some other typing mechanism and only a varchar(max) will fit the bill then why subject your system and applications to the kind of overhead and performance issues inherent in one of the LOB datatypes?

If on the other hand you are working in an OLAP environment or in a Star Schema DW environment with Dimension tables with descriptors fields that naturally need to be verbose then a varchar(max), as long as you are not adding that to an index, may be useful. Still I would recommend even then to use a char(x) varchar(x) As it is always a best practice to only use those resources you absolutely must have to get the job done.