Both servers are member servers in the same domain. The software is installed and run on the target system.
The source is running Windows 2008 R2 and the target Windows 2012 R2. If newer Windows versions were used, or if running it on the target, the same settings could be used. The source and the target could be NAS storage solutions as well. CopyRight2 supports NetApp, EMC, Hitachi, Synology and many other storage solutions.
You could also run a clustered DFS server if high availability is a concern, please check the user's manual for more information on how to use a clustered DFS server to maintain the UNC namespace.