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SQL Database Example
Let's say we have a SQL Server with the name of SQLEXPRESS. We have to create a database in this server in order to use it for data binding. One way to do it is by using SQL Management Studio.
Let's create a database called myFirstDB:

Now we can connect to it and use it for data-driven testing.
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Load the Create New DataSource menu.

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Choose Database.
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For Provider, select SqlClient Data Provider.
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Here's an example for Connection String:
Data Source=MACHINENAME\SQLEXPRESS; Initial Catalog=myFirstDB; Integrated Security=true;
- Data Source is the name of the SQL Server.
- Initial Catalog is the named of the Database.
It is possible to use different connection strings. See here for more examples.
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Customize the Friendly Name as desired.
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Click on Create button and the new data source should appear in the Data Sources list.