When to build a separate reporting database?

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We're building an application that has a database (yeah, pretty exciting huh :). The database is mainly transactional (to support the app) and also does a bit of "reporting" as part of the app - but nothing too strenuous.

Above and beyond that we have some reporting requirements - but they're pretty vague and high-level at the moment. We have a standard reporting tool that we-use in-house which we'll use to do the "heavier" reporting as the requirements solidify.

My question is: how do you know when a separate database for reporting is required?

What sort of questions need to be asked? What sort of things would make you decide a separate reporting database was necessary?

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