I am not understanding the backing up of vm's to the cloud with out backing up the data there also, these vendors are proposing vmware in the cloud on the fly, does that make sense without the san being backed up
closed as not a real question by Wesley, John Gardeniers, Tim Brigham, Khaled, Dave M Apr 19 '12 at 12:32
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You always have two choices... you can snapshot and replicate the quiesced storage that hosts the virtual machines (the VM's are largely unaware of this) or you can use utilities the smartly synchronize the VM's into a remote storage. The latter can be done a number of ways, by hooking into the host servers, by using a proxy type server.
I can recommend that you take a look at either VRanger, or Veeam.