both are possible, in the former, your db will run very slow though as the server>db traffic is around 20x the server>client traffic. it's best to connect the clients to a server which has DAS or Tier1 connection to the data.
In the latter, you can replicate out pretty easily, it's back which is the problem unless you set yourself up in a proper fragmented architecture.
Our configuration is with two servers.
Server1 with db on local disk
Server2 with smb access to server1
I can confirm the significant slowness of access over the network, but it works for us if there is a service failure or something along those lines.
I have the MEE server setup and installed in one location. I would like to install the MEE mananger at another site, but use the same database I have existing. I installed the software on the 2nd system, but don't see an option to point to another location, only to create a new one.
Bad idea, performance will suffer greatly and could cause other problems too. Always use other servers in "the same site". But if you want to experience this yourself.....
Copy SDMCFG.INI from another server (or even from client) and use remote database (IP or name) to connect to.
You will then manage database server from other location.
just reinstall EEM on your 2nd machine, but when it trys to create a db, hit cancel.
then, you'll get the usual login box, you can go and create a new remote connection back to your original EEM Server. DONT use a local connection and a UNC, that will pull things down to their knees indeed.
performance will depend on how latent your network is between the two.