@NemanjaJanicic -- the BP Guide and link I provided in your previous post discuss HV On/Off Proxy decision based off pros/cons...did you read it? They generally recommend on-host unless there’s some dire need to have off-host. The Guide also talks about VBR placement , generally to be placed in the main DC alongside the infrastructure backing up.
Choosing between physical vs virtual Proxy depends mostly the transport mode you wanna go with - DirectStorage (SAN/NFS) or hotadd. You can’t go wrong with either tbh.
Hope that helps.
Hello @NemanjaJanicic
It is better to place VBR out of Hyber-V if you have only single host, that is for disaster recovery.
For Off-Host proxy, it should be physical, creating off-host proxy virtual is not a good idea (Hyper-V nested inside another hypervisor), because off-host proxy must be a windows server with Hyper-V role installed.
For Hyper-V I usually recommend to use On-Host backup, because “it just works” Off-Host is great if you want to completely offload operations from your Hyper-V cluster, but in my experience, it’s usually more trouble than it’s worth… there’s a lot of rather strict requirements.
One important difference in Hyper-V, compared to vSphere, it’s that by default *all hosts* of the Hyper-V cluster are used as Data Movers (source proxies)… not the VBR server, not (only) the Hyper-V host it runs on (if it’s a Hyper-V VM, just like your case).
So you also get better / more even load distribution. If your hosts are generally not super loaded CPU-wise, I would definitely recommend using On-Host backup.