SQL Server – Requirements for Installing Service Broker External Activator on Remote Machine

I have implemented Service Broker on one of my databases, and have successfully processed messages with my own c# application by following this tutorial.
http://devkimchi.com/811/service-broker-external-activator-for-sql-server-step-by-step-1/

I was able to successfully install the SSBEA on my development Sql Server, it runs as advertised. However, from reading the documentation it appears I can run SSBEA on a different server other than by database server.

How can I accomplish this? I have a 2nd Windows 2012 machine, and I installed SSBEA along with my application service, everything is the same in the config file

note the EAService.config file below, So on my SqlDev Windows 2012 server, everything works fine, on my CloudDev Windows 2012 server, the SSBEA service fails to start, both are running with the same "admin" account. I chose Admin to ensure things would work. and they do on SqlDev, but they do not on CloudDev.

Any advise is helpful to me, do I need to install sql server client tools on CloudDev?

  <NotificationServiceList>
   <!-- Event Notification Name from Sql Server -->
    <NotificationService name="myNotificationService" id="100" enabled="true">

      <Description>My Notification Service</Description>
      <ConnectionString>
        <!-- All connection string parameters except User Id and Password should be specificed here -->
        <Unencrypted>server=sqldev;database=CloudDev;Application Name=AppServiceBroker;Integrated Security=true;</Unencrypted>
      </ConnectionString>
    </NotificationService>
  </NotificationServiceList>
  <ApplicationServiceList>
    <ApplicationService name="AppServiceBroker" enabled="true">
      <OnNotification>
        <ServerName>sqldev</ServerName>
        <DatabaseName>CloudDev</DatabaseName>
        <SchemaName>dbo</SchemaName>
        <QueueName>myRequestQueue</QueueName>
      </OnNotification>
      <LaunchInfo>
        <ImagePath>C:\appSB\AppServiceBroker.exe</ImagePath>
        <CmdLineArgs></CmdLineArgs>
        <WorkDir>C:\appSB</WorkDir>
      </LaunchInfo>
      <Concurrency min="1" max="1" />
    </ApplicationService>
  </ApplicationServiceList>

*EDIT: as requested, the only Error Message shows up in the System Log for the SSBEA not starting:

Log Name:      System
Source:        Service Control Manager
Date:          3/24/2016 2:29:33 PM
Event ID:      7000
Task Category: None
Level:         Error
Keywords:      Classic
User:          N/A
Computer:      CLOUDDEV.mynet.local
Description:
The Service Broker External Activator service failed to start due to the following error: 
The service did not respond to the start or control request in a timely fashion.
Event Xml:
<Event xmlns="http://schemas.microsoft.com/win/2004/08/events/event">
  <System>
    <Provider Name="Service Control Manager" Guid="{555908d1-a6d7-4695-8e1e-26931d2012f4}" EventSourceName="Service Control Manager" />
    <EventID Qualifiers="49152">7000</EventID>
    <Version>0</Version>
    <Level>2</Level>
    <Task>0</Task>
    <Opcode>0</Opcode>
    <Keywords>0x8080000000000000</Keywords>
    <TimeCreated SystemTime="2016-03-24T21:29:33.445869600Z" />
    <EventRecordID>23653</EventRecordID>
    <Correlation />
    <Execution ProcessID="556" ThreadID="5736" />
    <Channel>System</Channel>
    <Computer>CLOUDDEV.mynet.local</Computer>
    <Security />
  </System>
  <EventData>
    <Data Name="param1">Service Broker External Activator</Data>
    <Data Name="param2">%%1053</Data>
    <Binary>530053004200450078007400650072006E0061006C0041006300740069007600610074006F0072000000</Binary>
  </EventData>
</Event>

I also took the liberty of installing the Sql Server Client Tools but there has been no change, the service still fails to start.