SLT Installation

We have two servers, CRM and CEI. We want to run SLT replication from CRM to CEI. From what I read my options are:

1. install SLT on the CRM server
2. install SLT on a stand-alone server

I have read nothing saying we can install SLT on the target server (CEI).

My Basis person has installed SLT on the target server and it appears to work (partly). It this a valid architecture? What are the reasons for it not being listed in the training material?

Thanks

Cliff