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I think I found the answer when I did the test on lab. It clearly says backup on same volume would reduce performance does not even allow me to choose same partition.
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In a virtual environment, if all the storage is shared storage and you're pulling from one storage source or array, it's a moot point. &nbsp;The OS is unaware that the vdisk is on the same set of pdisks. &nbsp;Backups performed to this disk or a different vdisk on the same storage array will be the exact same speed.
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Yes, it will affect performance.<br />
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Because you are reading and writing to the same virtual disk, on the same LUN.<br />
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But whether it's enough to affect service, depends on the underlying datastore and LUN.<br />
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You will have to check if End users notice.
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I can schedule that after hour so end end user should not noticed that. But I have seen Exchange reacts weird when IO is stressed. I have seen Exchange generating SMTP queue errror, transport error which were all started from VDP IO stress. It may not happen like with windows backup but Exchange does show erratic behavior on IO stress which is completely based on VDP experience on exchange. Specially when I introduce DAG member (cluster) of virtual and physical exchange for redundancy again virtual environment. &nbsp;<br />
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I guess I will do stress test with Windows backup as it should not get confused with physical over virtual, as VDP does not support physical but the database is shared on cluster. Limitation of windows backup is the use of local drive to achieve multiple backups. I will try this weekend so I could reboot if services get interrupted or errors out...<br />
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Thanks for response and suggestions
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I will schedule off the production hour for sure and likely to do first test on Friday to keep more room to fix the SMTP or DAG errors.. Thanks.<br />
Also, I have NFS shared made out of re-purposed server. I will map a share and create a new vmdk on it for backup, instead of using ISCSI from netapps. It has LAG interface of 3 1GB connection which should be good for backup
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Does it compromise the Exchange IP performance, if I schedule Windows based exchange DB backup on the same drive which has database copy. Which in my case is F drive and my VM gets drive from ISCSI lun. I over provisioned the drive and I wanted to use that to keep three DB copy per week and remove after a week.<br />
The network drive backup can only keep one windows backup and VDP backup appliance stresses Exchange.
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Does it compromise the Exchange IP performance, if I schedule Windows based exchange DB backup on the same drive which has database copy. Which in my case is F drive and my VM gets drive from ISCSI lun. I over provisioned the drive and I wanted to use that to keep three DB copy per week and remove after a week.
The network drive backup can only keep one windows backup and VDP backup appliance stresses Exchange.

Exchange 2013 Win backup

Exchange is the server side of a collaborative application product that is part of the Microsoft Server infrastructure. Exchange's major features include email, calendaring, contacts and tasks, support for mobile and web-based access to information, and support for data storage.

Exchange

VMware, a software company founded in 1998,  was one of the first commercially successful companies to offer x86 virtualization. The storage company EMC purchased VMware in 1994. Dell Technologies acquired EMC in 2016. VMware’s parent company is now Dell Technologies.

VMware has many software products that run on desktops, Microsoft Windows, Linux, and macOS, which allows the virtualizing of the x86 architecture.  Its enterprise software hypervisor for servers, VMware vSphere Hypervisor (ESXi), is a bare-metal hypervisor that runs directly on the server hardware and does not require an additional underlying operating system.