It is my first experience with the storage snapshots, so please be gentle

My environment:
Veeam B&R V8 Patch1 - installed on a physical box (also target storage).
ESXi/vSphere V5.1
3PAR 7200 with snapshot license (source storage). Snapshot CPG is configured on a test Virtual Volume (LUN).
All 3 devices can see each other through FC and I can see the LUNs in Windows disk manager. I add 3PAR to the Veeam and can manually create storage snapshots, see VMs under the snapshots and run Veeam Explorer and restore data. This part works fine.
Now, I create a backup job and add a VM that is located on my test VV (LUN). "Use storage snapshot" is enabled on the job.
The job kicks out, performance are great, finishes without an error, but I think it is not using the storage snapshots and I can't figure it out.

This is what I see:
:: Getting VM info from vSphere
:: Preparing guest for hot backup
:: Creating snapshot
:: Releasing guest
:: Saving [3par01-SANDBOX1-FC] TEST-DC2008/TEST-DC2008.vmx
:: Saving [3par01-SANDBOX1-FC] TEST-DC2008/TEST-DC2008.vmxf
:: Saving [3par01-SANDBOX1-FC] TEST-DC2008/TEST-DC2008.nvram
:: Using backup proxy Veeam-Proxy.local for disk Hard disk 1 [san]
:: Hard disk 1 (40.0 GB) 38.0 GB read at 214 MB/s [CBT]
:: Removing VM snapshot
:: Finalizing
:: Truncating transaction logs
:: Processing finished at 2015-03-05 2:38:42 PM
My understanding that it should create a VMware snapshot, then create a hardware snapshot, then remove the VMware snapshot and continue using the hardware snapshot. Veeam will display something like "Using hardware snapshot" and I should see the hardware snapshot in the 3PAR console (I don't see it).
What am I missing here?
Thanks,
Daniel