Correct me if I misunderstood your question. What we mean by objects can be: Everything, Folder, Host Group, SCVMM, Cluster, Host or Virtual machine within Hyper-V. What you have been doing is perfect. No need to do something specific. What Niels above says is if you want to take advantage of application aware processing giving you item-level recovery for many workloads (SQL/ AD/ Exchange/ ...). Before you can do that, you need to tell the job that holds those servers that it needs to do application aware processing which is in this step: https://helpcenter.veeam.com/docs/backu ... tml?ver=95
But as said, selecting VMs is a perfect method, we just use objects as a name and not VMs because you can choose differently. And when that VM is a sql server, it will be protected no matter what, and with AAIP you will even have additional item-level restore options
Did I understand it correctly?