Hi:
Compilation of a SAS program, followed by execution of the compiled code requires an instance of SAS (or conceptually, a SAS.EXE file or an installation of SAS).
SAS can be installed in several modes:
1) local mode -- a local SAS.EXE instance exists on one machine and you use either Display Manager, or SAS Enterprise Guide to submit programs to SAS on the local machine;
or
2) server mode -- a server copy of SAS exists on one (or more than one) server machine and you use either SAS/CONNECT or SAS Enterprise Guide or a TELNET session to access SAS on the server machine
or
3) SAS Platform servers (also called BI or Enterprise BI servers) -- SAS is installed in the context of the BI Platform and all the client applications on the BI Platform (including SAS Enterprise Guide, Web Report Studio, etc) can submit code to the appropriate instance of SAS, depending on whether they are running tasks, using Information Maps or running stored processes (In this scenario -- the available servers used with the Metadata Server are the Workspace Server and the Stored Process Server)
or
4) using other technologies, such as SAS/IntrNet in which an application broker sits on a web server and sends a request for a SAS program to run using an Application Dispatcher program that uses either a DATA server or a COMPUTE server to handle the request, as just one example.
So, your question requires a bit more clarfication. You could have Enterprise Guide in a Windows environment. That copy of Enterprise Guide might be submitting code to SAS on the same machine; or submitting the code to SAS on a server machine (could be a Unix server, a Windows server or a z/OS server); or submitting code to a Workspace Server or Stored Process server in the context of the BI Platform.
The explanation of how code is compiled/executed depends on the configuration scenario that you are using. For more information about how SAS Foundation Servers could be configured in the context of the BI Platform, refer to the topology scenarios in this paper:
http://www2.sas.com/proceedings/sugi30/217-30.pdf
cynthia