Caching Location of Analysis for Office reports stored on BIP 4.2 Sp 07

Hello All,

With the BIP upgrade to 4.2 SP 07, we have an option of enabling a Caching for Analysis for office reports from CMC--Go to Central Management Console -> Applications -> Analysis Office Runtime -> Properties -> Caching

Can you please let me know where does this caching gets stored? Is it on the application server of the BIP platform? If yes, we need to consider the space utilized and how frequently it needs to be cleared.

Thanks!

Regards,

Hetal