Report builder is a report authoring tool that is specifically given for business users who are familiar with ribbon-based interface of Microsoft Office. It is the primary tool that addresses all self-service reporting scenario and a user-friendly tool.
Report builder has two versions, functionally equal but the way we open it for business user is different. Once version comes as Click-Once application which can be opened using Report Manager and other one comes as a stand-alone application which can be downloaded from Microsoft Download Center. When you open the Report Manager, the shown button can be clicked for downloading the Report Builder to the client machine.
Now, what if you want to disable this facility and make sure users cannot download the Report Builder from Report Manager? What you have to do is, connect with Reporting Services using Management Studio and get Advanced Properties opened. It has a property called EnableReportDesignClientDownload which can be used for enabling and disabling it.
Once it is set as false, the button Report Builder will no longer be appeared.