After creating the backup directory in step 1, we save the current guest definition to disk in step 3. In step 4, after stopping the virtual machine, we copy its image file to the backup directory. In step 5, we create a bzip2 compressed data file which we transfer to a remote server in step 6.
On the remote server, we extract the archive in step 7 and copy the raw image file to where the XML definition of the instance is expecting it, then define the instance in step 8.
Note that in order to preserve the consistency and integrity of the data while copying the image file to the backup directory, we had to first stop the KVM guest.