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It is not recommended that you install Veeam Backup & Replication and its components on mission-critical machines in the production environment such as VMware vCenter Server, Domain Controller, Microsoft Exchange Server, Small Business Server/ Windows Server Essentials and so on. If possible, install Veeam Backup & Replication and its components on dedicated machines. Backup infrastructure component roles can be co-installed.
Data encryption has a negative effect on the deduplication ratio if you use a deduplicating storage appliance as a target. Veeam Backup & Replication uses different encryption keys for every job session. For this reason, encrypted data blocks sent to the deduplicating storage appliances appear as different though they may contain duplicate data. If you want to achieve a higher deduplication ratio, you can disable data encryption.
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