With SDk you can use the same libraries cognos 8 uses. So in general you can build a new reporting envirnoment if you like. But with the cognos 8 libraries you can also build additional functionallity such as memberships of a user, permissions of a user on all objects in the contentstore.
Hello, you'll learn the hard way that the SDK and the C8 functionality are not 100% the same. The SDK and C8 itself do not use the same libraries. I found this out after working on a Cognos SDK project for 3 years and having 2 Cognos 'performance' consultants come onsite, and by generating 30 Support Calls.
The negatives aside, you can do all of the main high level functionality that the C8 toolset does such as executing reports, batching, user security, automating deployment packages, publishing cubes, etc...
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