When protecting your Virtual Machines through backup protection (as opposed to Hot Standby/Failover) you need to create one or more proxies. These are deployed by the VA upon demand and then are maintained without need for you to administer them. The proxy facilities ensure the backups to NFS or CIFS shares are efficiently located and spread network traffic for maximum performance.
So how do you know which of the four deployment options is for you? The following diagrams may help you and your choice should be guided by the size of Hypervisor estate you are protecting. We will start from the smallest and progress to the solution for the largest estates: