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Server side processing

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I've been asked to spec a pair of servers for a web based application - one server to run the SQL database and one to run the application and IIS. It's not really my area, and it's highlight a question that I hadn't really thought about before.

I understand the general concept of client side and server side processing, but in the above scenario, where does the processing occur if it's 'server side'. I appreciate it will possibly depend on a few factors, but in a basic example, if the web application needs to run a query on the SQL data, where is the processing done - on the SQL server or on the IIS server?


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