It can, but cannot be combined with local drives. In addition to this, using a network share doesn't support incremental backups, it has to do a full single backup each time.
Yes , Synology NAS can be used as a shared drive and this can included in the Server 2016 built in backup.You can use good backup options built-in on the Synology NAS range for backing the files up in single backup each time.
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