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VMWARE Vcenter 5.5 installation

I need to install vmware 5.5 vcenter server.  It will run on Microsoft windows 2008 r2 platform. It will need to support 7 hosts and 120 vm's.   Should it be physical,  virtual?  Should the sql server be installed on the same machine or on remote server?
If it the sql server on remote machine,  how would you recover vcenter in case of failure?   Is there a best practice document that describes all pro's and con's of each install?

Thank You
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Avatar of Andrew Hancock (VMware vExpert PRO / EE Fellow/British Beekeeper)
Andrew Hancock (VMware vExpert PRO / EE Fellow/British Beekeeper)
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jem1662

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Thank You,   How does Appliance licensed?   Are there limitations of number vm's and host's.
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Thank You.  That's an excellent blog.
The appliance is actually now better than Windows and vCenter for Windows.

Appliance is licensed exactly the same as vCenter for Windows.

So it's your choice, as to do you use vCenter for Windows or Appliance !

Quicker to install, better performance, in the future we will switch to Appliance!
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Thank You all for this invaluable information.