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Visual Studio Team System is an umbrella term that essentially represents 6 products for SDLC teams. The “System” part of the term represents that many other products that can be hooked-in to the system via clients they already use like MS Project, Excel, SharePoint, Browser or third-part product. The component of VS Team System that manages all aspects of the project (source code, work-items, reporting, build, etc) is Team Foundation Server.
*Note that recently we merged VS Developer Edition and VS Database Edition. If you license someone with one they get the other at no cost. They will be 1 product in VS2010.
