The HotAdd backup proxy must be a virtual machine. HotAdd involves attaching a virtual disk to the backup proxy, like attaching disk to a virtual machine.
The HotAdd proxy must have access to the same datastore as the target virtual machine, and the VMFS version and data block sizes for the target VM must be the same as the datastore where the HotAdd proxy resides.
In some implementations, a different HotAdd proxy backs up Windows versus Linux virtual machines. In other backup implementations, the same type of HotAdd proxy backs up both.
For parallel backup, sites can deploy multiple HotAdd proxies.