Because putting a network between an application and the data it needs will probably slow performance, consider these items when deciding where to put data.
If an application involves transactions that run frequently or that send or receive a lot of data, you should try to keep it in the same location as the data. For example, an application that runs many times a second or that receives hundreds of rows of data at a time will have better performance if the application and data are on the same server. Conversely, consider placing data in a different location than the application that needs it if the application includes low-use transactions or transactions that send or receive only moderate amounts of data at a time.