This episode dissects Veeam's architecture: the Veeam Backup Server as the brain, Backup Proxies as the data transport workers, and Repositories as the home for backups. You will also learn about transport modes (SAN/NBD/HotAdd), WAN Accelerator, Tape Server, and Veeam Backup Enterprise Manager for multi-server environments.

After understanding why Veeam exists in episode 1, now we dissect how it works. Veeam's architecture is like a logistics company: a headquarters that coordinates (Backup Server), a truck fleet that moves goods (Backup Proxies), and warehouses where goods are stored (Repositories). Understanding who does what will save you from confusion when a job fails or performance drops.
In episode 2 we map out Veeam's core components, the transport modes that determine the data path, and supporting components such as the WAN Accelerator, Tape Server, and Enterprise Manager.
The Veeam Backup Server is a Windows server that runs all management services: job scheduling, backup cataloging, authentication, and control of other components. It stores metadata (catalog) but does not (by default) move backup data — that is the proxy's job. This is an important distinction: moving data through the management server is a common architectural mistake in other backup products; Veeam separates the two by design.
The Backup Proxy is the component responsible for moving data between the hypervisor/storage and the repository. VM data is read from the source, processed (dedup & compression — episode 6), then sent to the repository. A single job can use one or many proxies in parallel. Proxies can be Windows or Linux, and can be placed close to the source or close to the repository for efficiency.
Check registered proxies from PowerShell:
Get-VBRBackupProxy | Select-Object Name,HostName,Status | Format-Table -AutoSizeThe Backup Repository is the storage destination: a Windows/Linux folder, an SMB/NFS share, or S3 object storage. This is where .vbk, .vib, and .vbm files are stored — we dig into storage details in episode 6, including Scale-Out Backup Repository (SOBR) in episode 18.
Hypervisor (VMware/Hyper-V/Proxmox)
│ VM data read via API / snapshot
▼
Backup Proxy ── process (dedup + compression) ──▶ Backup Repository
▲
│ job commands & metadata
Veeam Backup Server (management + catalog)The proxy must read VM data from the hypervisor. How it reads determines performance and network design:
The proxy reads VMs directly from a SAN LUN (block storage) without going through the production network — the fastest path and the least disruptive to production. The requirement is that the proxy has access to the same LUN (iSCSI/FC zoning). Suitable for ESXi.
Data is read from the hypervisor over the network using the NBD protocol. Most flexible (no storage access required), but consumes network bandwidth. Suitable for ESXi without SAN access or when the proxy cannot do HotAdd.
The proxy is a VM running on the same hypervisor. The proxy's disk is hot-added to the source VM while the backup runs — leveraging the virtual storage path without touching the production network. Most common in vSphere environments.
Tip
Choosing a transport mode is not about "the best for everyone", but "the most suitable for your topology". Rule of thumb: SAN for environments with shareable LUNs, HotAdd for virtual proxies, NBD as a universal fallback. Veeam can also combine multiple modes within a single job.
The WAN Accelerator speeds up cross-site backup copies and replication over slow WAN connections using deduplication-aware and compression techniques. It works in pairs: one at the source site, one at the target site. We use it when building off-site copies in episode 7 and DR in episode 9.
The Tape Server is the bridge to tape libraries (LTO) — still vital in industries that demand long-term archive or compliance. Veeam supports tape-out from repositories and direct backup to tape jobs. We touch on this in episode 19.
Enterprise Manager is a web portal for managing many VBR servers from one place: running restores, viewing reports, and centrally managing licensing. For organizations with multiple backup servers, EM is the unified entry point — we discuss it in episode 20.
In a lab, a single Windows server can run everything at once (server + proxy + repository). In production, separate the roles: a management server, distributed proxies, dedicated repositories. We break down scaling and hardening in episodes 13 and 18.
Key takeaways:
In the next episode, episode 3, we will install VBR and its components — preparing Windows Server and SQL (built-in Express/single instance), deploying VBR v13, automatically adding proxy and repository, installing per-workload licenses, and preparing credentials and a scale-out repository. The first time you open the Veeam console!