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Do SEM and BW have to be on the same server?

We currently have mySAP CRM and R/3 FI implemented at our organization. We are looking to install SEM. Do we have to have SEM and BW on the same server or can BW be stand alone? The reason we would like it on a separate server is so the performance of the SEM instance would not be affected once other modules began to use the BW.
SEM is an add-on tool on top of BW, and you should have a BW system with your SEM system. For performance concerns, you have to perform a comprehensive hardware sizing and based on the results you should select your BW-SEM server. Another option is that, you can install another BW system just for reporting purposes, but SEM requires its own BW and relevant data, in this approach you will need more hardware and transfer data from standalone BW into SEM-BW and vice versa.

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