Thanks for the validation that things look as expected. As for sending the physical copy of the files as the initial seed, it was a thought but we wanted to see how the link would work first and these were the first couple jobs. I wanted to be sure we weren't doing anything stupid on our end that may have been causing the slow network speeds. I was messing around with the proxy selection last night and was forcing it to use the server that was performing the replication and not sure it helped but things did speed up slightly.
11/24/2016 6:24:11 AM :: Load: Source 32% > Proxy 32% > Network 74% > Target 21% (processing rate of 25MB/s)
11/24/2016 7:35:40 AM :: Load: Source 13% > Proxy 27% > Network 92% > Target 13% (processing rate of 21MB/s)
I figured the initial seed would be the most painful part and the incrementals would be a quick job. At this rate we should be able to get through the remaining VM's over the weekend.
oliverL - to your question, this is strictly for a DRaaS event. We have always put backups on LTO tapes, but trying to improve our DR stance. We will still continue to do local backups to our fiber channel SAN which as you can imagine goes quite a bit faster.
Thanks everyone for the thoughts/help.