Since you are using Essential Plus you may want to use VMware Data Recovery, which is included (http://www.vmware.com/products/datacenter-virtualization/vsphere/small-business/essentials-kits.html)

If you don't like it you could use:

Veeam Backup & Replication (http://www.veeam.com/vm-backup-recovery-replication-software.html?ad=menu)

Acronis (http://www.acronis.com/enterprise/products/vmprotect/)

Sam

How should I go about the current setup? Should I put some virtuals on one server and some on the other and do backup to nas? or will the data recovery feature allow me to backup to the second server? I will look at the data recovery feature you mentioned. Thanks for your help.

VMware Data Recovery (VDR) is a virtual Appliance which has to be deployed by vCenter. Once installed you have to specify a storage for backup and retention.

This storage could be VMDK, RAW DISK, CIFS.

After storage configuration you can setup jobs.

VDR does not perform replication on a second ESX for DR purpose. The backup output has to be restored if you need to use it. If you need replication and backup I'd suggest Veeam software.

for you conveninece: VDR documentation: http://www.vmware.com/support/pubs/vdr_pubs.html