For a small installation with less than a few dozen forwarders, your main Splunk instance can run the deployment server without any issue. For more than a few dozen forwarders, a separate instance of Splunk makes sense.
Ideally, this instance would run on its own machine. The requirements for this machine are not large, perhaps 4 gigabytes of RAM and two processors, or possibly less. A virtual machine would be fine.
Define a DNS entry for your deployment server, if at all possible. This will make moving your deployment server later, much simpler.
If you do not have access to another machine, you could run another copy of Splunk on the same machine that is running some other part of your ...