Veeam Recommendations

Hi everyone. I'm about to set up Veeam and just wanted to get a couple pointers. From your experience, is it best to use a dedicated physical machine to run the Veeam software? Or can it be a VM?

For offsite backups, I plan to use a machine in a colo as the target. Can that target be my other ESXi host? Or does it have to be another form of storage?

Thanks!