1) The backup proxy sends a request to the ESX(i) host to locate the necessary VM on the datastore.
2) The ESX(i) host locates the VM.
3) Veeam Backup & Replication triggers VMware vSphere to create a VM snapshot.
4) VM disks are attached (hot-added) to the backup proxy.
5) Veeam Backup & Replication reads data directly from disks attached to the backup proxy.
6) When the VM processing is complete, VM disks are detached from the backup proxy and the VM snapshot is deleted.