Step 5. Specify Backup Proxy and Repository

At this step of the wizard, specify a backup proxy server that you want to use to process data during a backup job session and a backup repository where you want to keep your backups.

To specify a backup proxy server and backup repository, do the following:

1. From the Backup proxy drop-down list, select a backup proxy server that you want to use to process data during a backup job session.
2. From the Backup repository drop-down list, select a backup repository to which you want to save your data.

You can select a standard backup repository or backup repository that was extended with object storage.

When selecting an extended backup repository, all data will be compressed and backed up directly to object storage; Veeam Backup for Microsoft 365 saves only cache to the extended backup repository.