the SQL Reporting services can be put any where, a dedicated machine, an ev server or the sql server, its really up to you.
It is just a webservice that connects to a sql instance, whether its locally or remotely doesn't matter, as long as the permissions are correct.
my personal preference is to install it on the EV Server, but some DBA's like to have SQL reporting services be kept with the SQL server.
its all based on where you'd rather connect to, its not resource or network intensive
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