DRO Best Practices?

We’re preparing to implement DRO in our org and I have a few best practices questions that maybe someone here could answer:

1. Physical or VM?
2. Is it possible to site DRO on the same server as Enterprise Manager?
3. Should be at the DR site, right?

I’m sure I’ll have more questions come up as I read through the official Veeam docs and start poking around at a test implementation. Thanks!