IQService does not run on the Virtual Appliance (VA). It is a separate service that must be installed on a Windows Server within the environment that has access to the target system, particularly for Active Directory and other Windows-based systems. IQService acts as a proxy between the IdentityNow tenant and these target systems, allowing operations such as password management and account provisioning to be executed on systems that do not support native connectors on the VA. It communicates with the VA but is not hosted on it.

SailPoint IdentityNow IQService Installation Guide.

SailPoint IdentityNow Target Connector Architecture.