Can Veeam replicate a local VM?

I plan on having 2 HostServers, each running vsphere 5.1.

On HostServerA:
Windows Server2012r2 VM-a
Windows Server2008r2 VM-b (with Veeam)

On HostServerB:
VM-a  Replica (created and maintained using Veeam replication running on VM-b
VM-b  A file-system copy of VM-b from ServerA

Will this work?  Can I use Veeam to replicate a VM on the same HostServer as itself?

Who is Participating?
Andrew Hancock (VMware vExpert / EE MVE^2)Connect With a Mentor VMware and Virtualization ConsultantCommented:
The same Host can be selected as a Destination for the Replica copy. (so replicating to the same Host Server).
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