Conceptually this should work however the limitations of bandwidth will most likely be the issue. I was thinking of a scenario more for DR purposes, basically sending the data off site to a DR site and storing the data on disk. We currently are using ESX 3.5 and VCB and storing the full VM backups onto tape however the backup windows are growing and in the event of a disaster bringing these VMs online from tape will not meet any recovery time objectives. Moving forward in the future it seems, at least as far as backing up and recovering these ever growing full VMs, that a disk based solution would work best.