Unable to preview report designs

I’m currently working with AX 2012 and Visual Studio 2010 to create new SRSS reports. I’m currently unable to preview the designs as it tells me I need the Business Intelligence Development Studio. The link the error message gives states that this is only compatible with Visual Studio 2008. Is there no tool available to preview reports in Visual Studio 2010?

Looking further into this it looks like I need report services installed however what I’m unsure of is if I’m meant to have visual studio installed on whatever computer I’m developing on or do I need to have it installed on the SQL server to develop SRS reports.