Before you can protect a vSphere machine with Backup and Recovery protection, you must first deploy a proxy.
The proxy can be deployed across the entire vCenter, at Datacenter or Cluster level, or (for larger Enterprise style deployments) at Host level.
To do this, follow these steps:
Navigate to Options → Hypervisor settings from the main dashboard
Click the “Deploy proxy” button and follow the wizard
Select the contract you’re going to use to licence the vSphere host machines (ESXi), the proxy deployment level (don’t know what to pick? See here) and your environment’s DHCP configuration. Then select the vSphere hypervisor you wish to deploy the proxy to.
Once all the options have been selected click deploy proxy to begin deployment. Deployment will then begin and can be monitored from the alerts pane at the bottom of the user interface.