Hello waynec1970, To manage your MD3200 all you need is a windows-based system to install MDSM on.  You can install it on either.  Most customers that I have worked with install MDSM on a different system then their host.  Since you are using 2016 what you will need to do is to install MPIO from your server first then you will need to install MDSM.  Please let us know if you have any other questions.
I'm have setup my MD3200 direct to my Hyper-V Host Server 2016. I have a Virtual File Server 2016 with direct pass through setup to the MD3200. My questions are:  Should I use the Virtual Host a the Management Server or should I use the virtual file server?Also, the the Host server is showing four drive and not two. The virtual server is showing two drives but the wrong LUN's. We received the MD3200 from our parent company. I have already setup shared drives and data on this and cannot have it down for to long as our other NAS has died. Any help would be great as I am new to this. Thanks, 
MD3200 on Hyper-V Server 2016 server SAS 6Gbs dual port