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I am assigned to create a transactional replication with a SQL Server clustered instance for reporting purposes. I'm planning to use the Distributor and the Subscriber on the same box.

Regarding the snapshot folder, is it ok to place it on the same box where the Distributor\Subscriber resides? Will there by any problems?

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As long as you can access that folder from all the nodes of the cluster there shouldn't be any issue.

Just make sure you have a decent nw connection between the cluster nodes and the replication box, otherwise the generation of the snapshots will take a long time.

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