One of the main benefits of the backup proxy is enabling LAN-free data transfer. By deploying it on a virtual machine with access to the VM disks, the proxy can retrieve data directly from the datastore in hot-add mode, bypassing the LAN. This setup enables efficient VMware backup. If hot-add isn’t possible, the proxy can still transfer data over the network.
Watch this video for detailed information: How to Add a Backup Proxy and Assign it to VMware Backup Job