Thankq very much for your suggestions, In our environment we are running with 25GB DB remotely on a VM. But we are frequently receiving performance issues with VC and its going down very frequently. When VMware analyzed the logs they could see some connectivity loss issues with DB, also verified from networking end and there was no issues.
Finally we decided to run DB locally from VC server, please let me know if may have to pay for this decision in future or it could run very smoothly ?