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Do I really need a Veeam proxy?

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I have a small network with two identically speced Dell R720XD ESXi 5.5 hosts.  Host A is processing all 12 production VMs on its local storage and is located in Building A.

Host B is my DR host and is located in Building B.  This host will only have one VM running Veeam Backup and Replication.

Host A and B are connected via 1Gb ethernet link.

It was suggested that I have a Veeam Proxy running on a dedicated VM on Host A where all of the production VMs are at.  The recommendation is that this VM is given "4x4" cpu setup (4 sockets and 4 cores).

Is this really necessary?  I'd rather not dedicate a Windows server license just for a proxy agent, but if it will drastically speed up jobs, then I suppose I can.


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