Veeam installation on virtual server on an esx host

[quantuml]

Can I install veeam backup on a win2k3 server running on an esx host? or do i need to instal lveeam on a server outside of the esx host and use ms iscsi to connect to the san, thus enableing me to us vcb backups vs network? or am i absolutly screwed up in my meathodology?

here is what i have:
esx 4.0 host server running 4 vm's
3 vms are on the local raid.
1vm is on the iscsi san. using 2 iscsi target.

on the san i have 3 more targets with pleasnt of space. should i use iscsi initiator on the veeam server to connect to the san then use the backup or will that still be a network backup making it slow?

[Gostev]

Yes, you can install Veeam Backup inside VM on ESX host and still be able to do SAN backups by leveraging MS iSCSI initiator inside VM.