Well it has actually been about 9 months we have been trying to get it to work

not 3 weeks.
But we have a case with IBM regarding this: TS003656104
I can see in the logs that the value S3ConcurrentTaskLimit=2 is working, the tiering is doing about 50-200MB/s with that setting (throttled in a virtual machine).
Without virtual machine limit it is tiering with 600MB/s and then we are oversubscribing the disks in the COS.
But 200MB/s should not be a problem and vi have 6x10Gbe on the COS. (3 sites 2x10Gbe per site)
We dont need better performance than 200MB/s.
We have a flash tier for disaster recovery and only need to tier older backups.
But it seems like it is the delete operations during repository cleanup that overloads the system.
And once that happens also PUT operations stops working.
But now we wait for IBM to dig in the logs.
But I realise that it probably is some configuration issue or that we are not using the object storage the way its supposed to be.