The following describes key provider support for some important vSphere features.
Encrypted vSphere vMotion: Supported by all key provider types. The same key provider must be available on the destination host. See Encrypted vSphere vMotion.
vCenter Server File-based Backup and Restore: Standard key provider and vSphere Native Key Provider support vCenter Server file-based backup and restore. Because most vSphere Trust Authority configuration information is stored on the ESXi hosts, the vCenter Server file-based backup mechanism does not back up this information. To ensure that the configuration information for the vSphere Trust Authority deployment is saved, see Backing Up the vSphere Trust Authority Configuration.