Yes, any VM you remove from a backup job would then exclude it from any of the Job’s settings, including Retention. It would also, if it is set, invoke the Deleted Items setting in the Storage section > Advanced button > Maintainance tab, and delete the VM server after the days set here.

How were you planning on moving the VM data to your 2nd, long-term DD Repo?

I was just going to remove the server from the job - then use the console GUI, right click the server under “Disk” and select move...but that only moves to another job.  I expect I would need to setup a CIFs and do a manual copy.

Sorry for my confusion...I would use the “Copy Backup” selection when right-clicking the server.  ( I knew it was in there somewhere!)

Yes, that is the option to move the backups between repositories.

Another option would be to simply take a VeeamZIP of the VM (before you delete it) and target whatever repository you want to target for long term storage and set it to expire after 7 years. 

That would take a backup of the VM from the current point in time and keep it until it expires out. You can also set encryption on that backup if you should so choose.

VeeamZIP was going to be my suggestion as well...a one-time backup that’s not subject to the normal retention policies.

Yep...that’s what you could do. 

Others have mentioned performing a VeeamZIP operation as well. So, you have a couple options you could do.

VeeamZip would work for most cases and is probably the best and easiest solution.  This customer however will need to archive backups of Physical machines - so the best solution for them is the extra repository.  Thanks everyone for you responses!