Local mode vs. connected mode reports in the Report Viewer
Applies to: 
SQL Server Reporting Services (2016)
SharePoint ❌ Power BI Report Server
For content related to previous versions of SQL Server Reporting Services (SSRS), see What is SQL Server Reporting Services?
Reporting Services reports can be configured to run in either local mode or connected mode, which uses a Reporting Services report server. Instead, you can use the Report Viewer to directly render reports from SharePoint when the data extension supports local mode reporting. This approach is called local mode. In previous versions of Reporting Services, the SharePoint farm was required to be connected to a Reporting Services report server configured in SharePoint mode so the Report Viewer control could render reports. This approach is called remote mode or connected mode.
Note
Reporting Services integration with SharePoint is no longer available after SQL Server 2016.
In local mode, there's no Reporting Services report server. You must install the Reporting Services add-in for SharePoint products, but no Reporting Services report server is required. With Local mode, users can view reports, but they don't have access to server side features such as subscriptions and data alerts.
Local mode vs connected mode and supported extensions
Local mode: When you have a data extension that supports local mode, the Report Viewer directly renders reports from SharePoint. In local mode, there's no Reporting Services report server. You must install the Reporting Services add-in for SharePoint products, but no Reporting Services report server is required. With Local mode, users can view reports but do not have access to server side features such as subscriptions and data alerts.
Connected mode, also called remote mode requires a Reporting Services report server in SharePoint mode, connected to the SharePoint farm so the Report Viewer control could render reports.
The following list has the data processing extensions that support local mode reporting:
Microsoft Access 2010 reporting extension. For more information on Access Services, see Use Access Services with SQL Reporting Services: Installing SQL Server 2008 R2 Reporting Services Add-In (SharePoint Server 2010).
The Reporting Services SharePoint list data extension. For more information on the SharePoint List Data Extension, see Data Sources Supported by Reporting Services (SSRS).
Custom data processing extensions can also be developed to support local mode. For more information, see Implementing a Data Processing Extension.
Local mode supports rendering reports that have an embedded data source or a shared data source from an .rsds file. However, you can't manage the report or its associated data source. If you try to manage the report or its associated data source, you receive an error that your action isn't supported in local mode. Managing data sources in the SharePoint site is supported in only connected mode.
Note
As with previous versions, you cannot embed user names and passwords in the .rsds file.
Configure local mode and access services with SharePoint 2013
You can configure your SharePoint 2013 farm to support existing Access 2010 web databases and Reporting Services local mode. For more information, see Set up and configure Access Services 2010 for web databases in SharePoint Server 2013.
It isn't possible to create new Access web databases for SharePoint 2013. Access 2013 uses a new type of database, Access web app that you build in Access, then use and share with others as a SharePoint app in a web browser.
For more information, see the following articles:
What's new in Access 2013 (https://office.microsoft.com/access-help/what-s-new-in-access-2013-HA102809500.aspx)
Basic tasks for an Access app (https://office.microsoft.com/access-help/basic-tasks-for-an-access-app-HA102840210.aspx?CTT=5&origin=HA102809500)
Configure local mode reporting with SharePoint 2010
Local mode requires ASP.NET session state. The installation of Access services enables ASP.Net sessions state. You can also enable using PowerShell.
Open the SharePoint 2010 Management Shell.
Enter the following command:
- Enable-SPSessionStateServiceWhen prompted, enter the name of your database.
Perform an IIS reset.
For more information, see Use Access Services with SQL Reporting Services: Installing SQL Server 2008 R2 Reporting Services Add-In (SharePoint Server 2010) and Enable-SPSessionStateService.
Connected mode
For the latest information on using ADS extension with Reporting Services connected mode, see Access Services Report in SharePoint Site shows error in data extension 'ADS'.