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I just had a similar experience myself.
I wanted to use a newer version of TERR with Spotfire and downloaded a Spotfire patch that contains the TERR update. I tried applying the patch to Spotfire Server, but got a database error. I didn't want to investigate the error right away since it'll hold me up from what I want to do on TERR and Spotfire. As a result, I downloaded and installed the latest version of TERR separately. It turns out that for Spotfire to use the new version of TERR I installed separately, I have to replace the "engine" folder of the TERR module that came with Spotfire with the one in the new TERR install. I feel the whole process should be easier.
I also wish for an option to not have to go to Spotfire Server to apply a patch, although I do see the reason for doing this through a centralized admin server.
Sometimes it is easier to upgrade the TERR engine locally before upgrading Spotfire for enterprises that takes time to upgrade. Instead of going to IT for an upgrade, it will be easier for end users to simply have another TERR installation and point it directly from Client - They use data connection to SQL for data
There are other use cases where providing flexibility to upgrade TERR would make sense especially for enterprises who take time to upgrade
Why would you want to do that?