Working with VM replication sets (Windows) : About VM replication : Offline VM replication
 
Offline VM replication
Offline VM replication is intended to reduce transmission time between the source DS-Client and destination DS-Client, especially for the replication of large virtual machines.
In offline VM replication, the source DS-Client saves replication data of the source virtual machine onto a local disk location in a folder as an Initial VMR Set. You then copy that folder to a local disk of the destination DS-Client machine and specify the location to import the data. The destination DS-Client places the replicated snapshot/checkpoint into the replication target virtual machine on the destination server. The snapshot/checkpoint is then ready to be used for failover.
To configure a VM replication set to perform offline replication, select Initial backup in the Specify replication set options screen.
NOTE:  The Initial backup option for replication sets behaves differently from the Initial backup option for backup sets.