I will give high level details of my requirement. We have one web application which accesses the database through SYBASE. The following technologies being used. Visual Studio 2010 .NET frame work 4.5 and for reporting Crystal Report. These are housed on windows server 2008. And for Database we use different servers. We are thinking of moving to SQL Server to be able to utilize the reporting features. My question is does SQL Server can be part of Windows Server 2008 R2 or we needed to have additional server for SQL?