To run and use the Update Manager server, you must ensure that your environment satisfies certain conditions. You also must ensure that vCenter Server and Update Manager are of compatible versions.
Before you install Update Manager on Windows, you must set up an Oracle or Microsoft SQL Server database. If your deployment is relatively small and contains up to 5 hosts and 50 virtual machines, you can use the bundled Microsoft SQL Server 2012 Express database, which you can select to install from the Update Manager installation wizard.
You can install Update Manager on a physical server or on a virtual machine. You can install the Update Manager server component on the same Windows machine as vCenter Server or on a different machine. After you install the Update Manager server component, to use Update Manager, the Update Manager client is automatically enabled in the vSphere Web Client.
If your vCenter Server system is connected to other vCenter Server systems by a common vCenter Single Sign-On domain, you can install and register Update Manager instances with each vCenter Server system.