When you create an online recovery point, the DPM server will start creating a backup and store it on the disk first (on-premises) and then transfer it immediately to Azure. Always keep in mind that network bandwidth is very important for online backup. You can verify your network performance from on-premises to Azure via your Internet Service Provider (ISP), or you can use a tool available from Microsoft (http://www.azurespeed.com/) to verify your network latency from your IP location to Azure data centers around the world.