Indeed. Hence my question around the local storage
. Thanks for the response nmdange!
So that indeed means that Veeam will use the hosts as proxies. (It is different with VMware so from there comes the confusion a lot). Don't worry about using on-host proxies. It isn't necessary a bad thing. What can be bad is the fact that onhost proxy will use some of your hyper-v resources to do its job. Which is still not an issue if your hyper-v hosts are sized correctly and you have resources over. (Depending on the person you talk to, and how you are going to do failover, some will say max 60 - 80 percent of the resources for VMs so you have a buffer). If you are running with limited resources left, then you might end up with slower connections to workloads and servers that start to "struggle". So keep that in mind for your design or VM placement.