Architecture question - On or Off Host Proxy

[tjdoc]

Hi,
I'm new to Veeam and am currently designing a new Hybrid Cloud setup to backup our on-premise VM's and data to a local repo with offload to Azure. (SOBR)
We do not have a huge workload to backup - 40 servers, about 40-45TB backup data (in-use disk space, not total disk space) but what we are backing up are critical database servers for our business.
We use Hyper-V with CSV.
The virtual infrastructure disks run on fibre attached SANs.

My question is: do we need a dedicated "Off-Host" physical proxy, allowing us to use storage integrated snapshots, or will it be sufficient to specify "On-Host" as the proxy type in each backup job?
How do you go about working out what the performance impact will be on the Hyper-V hosts if you use "On-Host"?

Many thanks for any guidance...

[PetrM]

Hi Tim,

In on-host mode, the source Data Mover is running directly on the source host and performs data reading, compression, and checksum computing. Obviously, it creates additional load on the Hyper-V host, especially from CPU perspective. I would try to minimize CPU load on the source host to avoid a negative performance impact on your business-critical services that are connected with the databases mentioned above. I recommend shifting data processing from the source Hyper-V host to a dedicated machine: to deploy an off-host proxy.

On the other hand, there are various methods to decrease intensity of backup operations in the on-host mode as well: a lower compression algorithm, I/O control, network traffic throttling. But all of these methods are not ideal because you'll get larger backup files and lower backup job performance.

Thanks!

[tjdoc]

Many thanks Petr, I'll be doing some PoC testing using on-host and monitoring the host performance impact to help decide the way forward.
Appreciate the guidance