I want to create Wcf service for SharePoint 2010. I strictly want to use server object model. I have gone through two articles http://www.dotnetcurry.com/ShowArticle.aspx?ID=760
I want to know if we are using sharepoint 2010 server object model then is it mandatory that custom wcf must reside on the same machine on which sharepoint is installed (as decribed in second link) ?
If you want to use the server object model you have to host your WCF service on the same server as your SharePoint is installed on.
If the WCF service has to be on a different server you can use the client object model or the SharePoint webservices to communicate to SharePoint.
(link to a question about using server object model on different server