I think Sage advises having SQL on the same machine as Sage 100. The main thing with SQL is having enough RAM for SQL to keep data in memory, and putting a limit on it so that you lave a little RAM left over for the OS and Sage 100. How much depends on the size of the database(s). Also putting the SQL logs on a separate physical drive (different partitions on same physical drive is actually worse due to increased head travel) from the main database files.