The Mongo database can be on any machine: Meteor will use the
MONGO_URL environment variable to locate the database. The "meteor
mongo" command will open a mongo shell to the DB (in production or
development), or will provide you the login credentials if you want to
use your own client.
The question of DB scale very much depends on the application: how
many clients are connected, how much data each is subscribing to, and
how often that data changes. These are probably best discussed on
meteor-talk -- this list is more for coordinating development of the
meteor core packages.
cheers,
matt
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