Management cluster

VMM 2016 supports management up to 1000 physical hosts and 25000 VMs. Therefore, the best practice is to have a separate management cluster with running VMM components to manage the production, test, and development clusters.

In addition to this, although you can virtualize the domain controllers with Windows 2016, it is not the best practice to have all the domain controllers running on the management clusters, as the cluster and System Center components highly depend on the domain controllers. If it's possible, place one or more DCs on the physical hosts or VMs in the location or fault domains different from the management cluster.

The following figure shows a two-node hyper-converged management cluster, with System Center 2016 components installed in separate VMs to manage the production cluster. All hosts are running on Windows Server 2016 with enabled Storage Spaces Direct to provide hyper-converged solutions which help to maximize the server's efficiency and reduce overall costs: