It might make sense in your environment to install a DPM Server inside a Virtual Machine. While it is supported by Microsoft, there are a few limitations you need to be aware of.
- The Hyper-V role cannot be installed on the DPM server when it has been virtualized. This prevents you doing item level restores from inside Hyper-V virtual machines.
- You are unable to use hardware tape libraries inside the Virtual Machine. You are still able to use iSCSI or Virtual Tape libraries though.
Further to this, it is also recommend that you use iSCSI or Pass-Through disks if you are going to be using DPM inside a Virtual Machine. Using VHD’s in the storage pool is going to give you poor performance.