+1 for dedicated physical repo (hardened one

.. I dont see much of a problem with MSA storage as a repo. Yes 2040 is a bit of the old HW.
We are not aware of your detailed backup scenario, budget etc.... Generally technically speaking MSA2040 is good piece of storage. If we speak about Apollo - nice machine at all, but price of this beast might be very different comparing to MSA.
Anyway - there is one rule I would follow generally (just repeating what Andreas already said) - Keep in mind that storing your backups on virtual machine (even with connected dedicated physical storage) dramatically increases your RTO in case of HW failure of that production HW.
Try to store your backups as simple as possible and as isolated as possible, also try to have as much copies as possible.
Unfortunatelly I see a lot of companies saves money when it comes to backup or generally non-prod solutions. Anyway even with that aproach there are some ways to do it with less pain after all

If there is a bunch of old servers/storage or even NAS (I hope not at all

). One can recycle these machines and use them as backup components.
With that scenario is more then ever very important to have multiple (same) copies of backup data.
In case you lose your production environment - these machines can save your day. Even the old ones
I can imagine that MSA 2040 can do much of music when it comes to instant vm recovery. All you just need is some piece of ESXi to run those IVMR VMs on AND a Backup Server/Mount Server with valid backups somewhere --- And this is the culprit - if this guys were VMs on that crashed ESXi host, you will spend some time with installing / configuring blah blah of those.
So divide these two worlds - production for production and backup for backup and RESTORE.