The answer ultimately comes down to what your current development practices are like, what your performance needs are, and the level of additional effort you're willing to go to to gain the performance you want.
Chip H.
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The best practice is to have your code centralized and separate according to use. Separate SQL with app code. You get better performance output from both your app server and database server since each will be used natively to their level. You gain scalability by doing so.
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