In theory it is best to process the data as close as possible to the Tamino server. What this means is that there is as little transmission of data as possible (just think large documents). Next best is the web server - this involves data transfer on the same machine. Worst would be at the client as this typically involves data transfer across an intranet or internet.
So the preferred data transfer ordering would be: in process (Tamino server), out of process (web server), out of machine (client).
Hopefully this makes the possible scenarios slightly clearer.
#webMethods#API-Management#Tamino