If we look at all the FIM features we are about to install, we need to understand that in theory, we might be able to put them all in one box. But, that is not practical, and in some cases is not even supported by Microsoft.
The example setup I use in this book, for The Company, can be used as a starting point.
As you will see, you will need quite a few databases. Depending on load and other factors, you can choose to install the databases locally on each box hosting a FIM feature or choose to have them all in a central Microsoft SQL server. Or, you can even mix the two approaches.
If you find that your initial approach was not optimal, don't be alarmed. Moving the databases is fully supported. In this book I will use so-called SQL aliases when referencing the databases; one reason for this is that it will make moving the databases simpler.
The System Center Service Manager Data Warehouse, required by the FIM Reporting feature, is usually using a separate SQL server...