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Yes that possible to install all modules in a single server with database.
But there is possibility to suffer from weak performance when number of modules or number of monitor elements and node increase.
So for scalability purpose its better in deployment phase you separate database and application in two different server.
Also its better to install your database on a physical server.
Also for better performance you should install additional pollers and additional website for delegation of authority for specific rules to this servers.
It's actually in the requirements to install the SQL DB onto another server and as saeron stated you will suffer from performance issues down the road.
The Orion server and the SolarWinds Orion database must use separate servers.
If you install on a virtual machine, you must maintain your SQL Server database on a separate, physical drive.
Dont install on the same box!!!
I have SAM & WPM running on a virtual machine and on the initial stages of implementing SolarWinds into our infrastructure i ignored the recommendations and went with SQL and App all on 1 server.
Trust me, you'll spend more time on plans to move SQL to another server than actually installing SQL & SolarWinds on the same box.
I suffered from huge performance problems when using SolarWinds when i had it all on one server, have your SolarWinds Database on a dedicated SQL Server.
It works well with a virtual machine platform just make sure the boxes have enough juice. I guess it depends on your storage backbone too.
EMC VNX storage on Gold Tier disks (SSD & SAS)
10 vCPU (it uses around 70-80% of this, 90+% on heavy loads)
SAM/WPM/Orion Additional Poller:
8 vCPU (Uses around 50-60% on average)
26GB vRAM - 22GB allocated to SQL Server Instance
See below image for amount of elements being monitored;
Hopefully my info will give you a clearer idea on what resources to allocated to the servers you will host your SolarWinds install on.
I actually ran for years this way, it was 2017 when i separated. It all just depends on the size of your site and nodes.