Question:
• Does Sage CRM supported encrypting the database via MS SQL Server encryption?
• Does Sage CRM support SQL Server replication at database level?

Answer:
1: We don’t support columnar encryption, since a key needs to be used with each SQL statement. We have issues with forced encryption (TLS) for the Java stuff, probably due to issues with JTDS, though the eWare DLL will work with it (I’ve been meaning to check this for a while – the writeup is available as KBA 492-15895). I would imagine that it should be possible to get this to work on the latest version – feel free to give it a go. Transparent data encryption (encrypting the data at rest in the MDFs etc) works just fine, since CRM is unaware of what’s happening. There’s a writeup available for the latter as KBA 492-17218.
2: There’s uses for this all right, but it is untested and therefore unsupported. I would guess that it would work fine so long as CRM is updating the master database, with other applications (such as a website or reporting app) consuming data from the slaves. There’s a discussion on it here:
https://community.sagecrm.com/partner_community/f/19/t/10097.aspx