You can upgrade the VMware Identity Manager connector virtual appliance online or offline.
Supported Upgrade Paths
The following upgrade paths are supported:
Version 2016.11.1.0 and later to 2017.7.1.1
By default, the connector uses the VMware Web site for the upgrade procedure, which requires the connector appliance to have Internet connectivity. You must also configure proxy server settings for the connector appliance, if applicable.
If your connector instance does not have an Internet connection, you can perform the upgrade offline. For an offline upgrade, you download the upgrade package and set up a local Web server to host the upgrade file.