In SharePoint mode a report server is installed as part of a SharePoint server farm. The report server processing, rendering, and management features are represented by a SharePoint application server running the Reporting Services SharePoint shared service and one or more Reporting Services service applications. A SharePoint site provides the front-end access to report server content and operations.For more details read the MSDN Article.Procedure for installing SQL Server Reporting Services 2012 in SharePoint Integrated Mode
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