Hi Shankar,
SQL Server 2012 Web Edition is a specially licensed version of SQL Server intended for web hosting companies with a specific agreement with Microsoft. You would need to double check with your Microsoft vendor to be completely sure of this, but from what I've read about that edition, it should only be used to support web applications/pages and not any line of business applications.
So, it's not so much a question of compatibility but of your licensing and use agreement with Microsoft for SQL Server.
Hope that helps.
Ansley
