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Step 4. Select Deployment Model

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At the Deployment Model step of the wizard, select a Microsoft Azure deployment model that you want to use to deploy the Azure proxy.

Select Azure Resource Manager to use the newest Microsoft Azure deployment model. Veeam Backup & Replication will employ Microsoft Azure Resource Manager API to deploy the Azure proxy.
Select Classic to use the classic Microsoft Azure deployment model. Veeam Backup & Replication will employ Microsoft Windows Azure Service Management API to deploy the Azure proxy.

The Azure Resource Manager option is preferable. Microsoft Azure recommends that you deploy all new workloads using the Resource Manager model.