Gearset seamlessly handles the comparison and deployment of metadata and CPQ configuration in source control, allowing you to manage the migration of all your changes in a single unified process.

Pre-requisite: Before starting you should have the Gearset external ID set up on your Salesforce org using the CPQ setup wizard.

Should I create a separate repo?

You could use a separate repo, but it's not required.

How do I get my CPQ configuration into source control to start with?

To seed the repo with your CPQ configuration, choose the source CPQ org and a target repository where the CPQ data will live alongside your Salesforce metadata. Go through the comparison process, choosing the CPQ configuration you wish to source control as well as any updates to related metadata and commit your selections to the repository.

What folder structure should I expect?

The initial commit will create a folder in the repo called configdata/ with a file named gearset-config-data-project.json and a folder for each object type, which will contain a .gs.json file for each record. After the initial commit you can rename/move the folder. Gearset will look for the gearset-config-data-project.json file and use that as the directory to commit new config data files.

Can the files live alongside the current metadata folders?

Yes.

Can I include CPQ as part of a CI job?

Yes, CPQ is supported in Gearset Pipelines and CI jobs.
For more information, check: How to Deploy CPQ with Gearset Pipelines

Is this going to eventually remove the need for the Gearset External Ids?

No, this builds on top of the Gearset External Ids.