@olivierlambert Sorry I didn't make this clear. I have multiple servers and one of them will not be used for production VMs. That's the server that happens to have a large amount of storage. I would not store backups on the same hardware as production work and this will not be my only backup of the production data. This server just has more storage than I have a use for so I thought it would be nice to use it for storing backups for the production servers since backups with history need a lot of space.
I do have an older server that I was considering using for backups but it just doesn't have nearly the storage as the one I'm talking about. 8TB as opposed to 90TB and it can't be easily expanded storage-wise. That one would be easier to convert to TrueNAS on bare metal.
It occurred to me last night that I could create 2TB drives for the XO VM on that server and backup to local storage in the VM. Actually one of my instances of XO is running on bare metal, instead of a VM, on that 8TB server so I could use that to backup to local storage if I didn't want to go with TrueNAS but TrueNAS has some other advantages, like providing an ISO share separate from my XCP-ng servers so it likely makes sense to go that route.