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Kafka brokers and applications on same server

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I have 3 servers available with me on which I am running a 3 node kafka cluster and also the kafka streams applications that consume from kafka and rewrite to kafka. Can this kind of setup where brokers and applications are running on same server have some ill effect on the performance of kafka? The servers are large and what we think are big enough in terms of memory and cpu. Also the application are not file bound so don't require a lot of IOPS

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