Virtual Datacenters w/o Smart Management

Hello,

I noticed a good discussion about Smart Management as an add-on:
https://access.redhat.com/discussions/689233

... but I would like a little more clarification about a particular scenario.

I have noticed one can add the Virtual Datacenters subscription to a Satellite manifest and an entitlement to a registered VM. This is also allowing that VM to be patched from Satellite.

Is it required to have the Smart Management add-on applied to that ESXi host as well, despite having the ability to deploy patching down to the VM? That is the primary purpose for utilizing Satellite in this environment.