We do not support backing up remote SQL Server instances. The agent needs to be installed locally to facilitate the movement of data to the cloud. Having said that, we've had requests to support remote servers. I'll add your name to the list in case we implement that support in the future.
You'll have to install the product locally on the OS where SQL Server is installed.
Thank you for the explanation! Yeah, it would be great if that feature is available just like in other enterprise backup such as R1Soft and Veeam. Any idea how soon it will be added?