MS SQL is a component required by the ConfigMgr server. This prerequisite must be met regardless regardless of the server type. ConfigMgr requirements for MS SQL are not that demanding. Even when planning to support a few thousands of clients, installing MS SQL Server with default settings should be fair enough. There is no need for SQL to be placed on a separate disk array. There is no need for splitting the roles of ConfigMgr and SQL on two separate machines.
An important thing when installing SQL Server is collation. The ConfigMgr server supports SQL_Latin1_General_CP1_CI_AS collation. Having a different collation won't allow the ConfigMgr database to be installed.
ConfigMgr 1706 can use the SQL installed, starting ...
