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VCenter installation

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We just got VMWare vSphere 5.1 ESXi and our license includes vCenter Server. Our current environment is very small with 1 host running 4 VMs but we will have a second host off-site as a failover/replica server hosting the same number of VMs. I believe to use any of the tools (replication, hot migration, etc..) you need to go through vCenter and not through vSphere Client. When I go through vSphere client I only see three options under the Home tab.

 

Once we get the download for vCenter Server, where is the best location to install it? I can't install it as an addition VM right? Does it need to be installed on its own dedicated physical box?

 

thanks

Ken


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