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Hello I am new to supporting servers with IFS installed and wanted to know if it is ok to install SQL updates regularly on the database server that hosts the IFS database? 

Yes, it is best practice to install security patches on SQL Server database servers.  Minor patches to same major version are generally OK.  I assume you are on-premise?  I would not install SQL Server upgrades to a new major version without checking in the FSM On Premise Installation Guide to verify the version is supported.   Check PSO separately.