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SOMETHING THAT IS KEY IS BOTH THE SERVER AND YOUR USERS MUST HAVE THIS DRIVER INSTALLED, OR THE CONNECTION WILL FAIL.
Once you have saved your connection you need to share it with users so it is 'permissioned' to the right private studios/users.
This can be done by editing the data connection and navigating to the 'Users and Studios' tabs.
In order to use this connection from within designer, first of all, the users must have permission to access it.
They must also have a 'logged in' session to your Alteryx Gallery (which you can do by either 'Open Workflow' > 'My Gallery' > 'Login' or through 'Save As' > 'My Gallery' > 'Login' and then close.
Your users can then go to the 'manage data connections' window which is available by going to 'Options' > 'Advanced Options' and then once you navigate to the 'manage data connections' window they should hit sync. If you find this doesn't make the connection available then I would restart Alteryx Designer.
Your users should then be able to make use of these connections via the 'Saved Database Connections' option within the input tool.
It turns out that I had to install the ODBC driver on all the machines anyway (which is why it was working for me but not my colleagues) it was just as easy to add the database to their system while I did the install rather than use Alteryx to distribute the details. We've also since broken up access to the database by user, so each user would need to have their own shared connection, it's just as easy to hard code it for them.
I appreciate everyone's help, things like this are obviously not too bad to get 90% of the way, but that last 10% is **bleep** mired in the teeny details.