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In a production environment I always install SQL on a separate VM. I don't want to build a monster VM. I want to ensure that SQL processes do not overtake any vCenter processes.
I know this article is a little old, but the points that are made are still valid -
http://rodos.haywood.org/2009/02/vcenter-server-database.html
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Thanks,
Marc Crawford
CCNA, MCSE, MCTS, A+, Net+, Sec +, VCA-WM, VCA-DCV, VCA-Cloud, VCA-NV, VCP-NV, VCP-DCV, VCP, VCAP5-DCA
http://gplus.to/marccrawford
http://blog.marccrawford.com
@uber_tech_geek