Depends how the VMs are configured. Are they file-backed, or do you export a block device via a volume manager? If file-backed, is it one large file as the "virtual harddrive"? If so, you can't to live backups outside the VM, unless you "pause" the VM first.
We're looking at using rsync from within our VMs to back them up. And plain dd to image the VMs while they are not running.
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