Thank you for the response.
I am trying to add the backup to disk device after installing the media agent. The steps I am following are:
1. Right click Devices and add device.
2. Device Name - Testbackup, Device Type - backup to disk, Interface type - StoreOnce software deduplication...Next
Server2 was populated in the gateway dropdown menu. So I chose it as a gateway. However, in the "Store" field Server2 is not listed as Deduplication System. It listes the Cell Manager in the drop down menu. Since Server1 would be responsible for deduplication, I chose Server1 there.
But I want to dump the backup data to the storage on Server2, and not sure how to specify the location? Creating a store with Server1 as the Deduplication System will create the store locally in Server1.