I was looking for the IS to be local to Designer , just like an application server(Tomcat) seen on Eclipse. Now, I realize that its same known IS installation which runs out of the designer as a separate service but both need to be locally installed.
I would wish to have IS server as built-in to Designer.
Thank you Rakesh for the insight  
/Naidu
#Flow-and-Java-services#webMethods#Integration-Server-and-ESB