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SSRS 2008 R2 allows us to execute reports in 3 modes

:
1. On Demand.
2. From Cache
3. From Snapshots
On demand:
This is normal approach that we follow, by hitting a report server URL. Each ti
me a report is run, data is returned from the database server and rendered to th
e report.
This approach ensures that our report is update and fresh.
The downside of this approach is that, if n users open up this report on their b
rowsers, queries on the report are executed n times.
Thus this approach at times might slow down the server.
Cache
One of the performance enhancements techniques is to cache a report when it is i
nitially run.
This means that if another user requests for the report, the same report is serv
ed to the user from the cache
This avoids people querying the database server from each report rendering.
To make sure that people do not receive too much stale data, we can set a time t
o invalidate a cache.
This is a good performance enhancement technique for slow running reports.
Snapshots:
Report snapshots are created at a particular schedule for certain parameters.
Please note that parameters cannot be changes on snapshot reports.
SSRS 2008 R2 allows to schedule the snapshot creation times.
Users can directly render a report from a snapshot. However please note that not
all reports can have snapshots, especially the ones that prompt users for crede
ntials.