This guide provides technical details and considerations about setting up an MECM distribution point.
Microsoft Endpoint Configuration Manager (MECM), formerly SCCM
University of Illinois IT Pros leveraging MECM, hosted by Technology Services' Endpoint Services team
A distribution point can be either physical or virtual so long as the distribution point is accessible to your networks. The goal is to decrease the load on the MECM servers for distributing packages and to quickly deliver packages to users' endpoints in your unit.
If possible, a physical distribution point can be installed on-site near the majority of the group's MECM-managed endpoints. A virtual machine hosted with Tech Services is also sufficient.
For most use-cases, a VM will suffice. However, groups that contain labs or endpoints requiring many applications with large content may benefit from an on-site physical machine or a well-resourced virtual machine, to minimize latency limitations.