Hi and welcome to the Community!
Storage VMotion is quite intensive sequential read operation, which in turn requires a lot of CPU power on NetApp. WAFL is fragmented almost 'by definition', which is fine for random workloads. For sequential ones, a complex read-ahead caching algorithm is used.
You can try improving things by checking & possibly reducing fragmentation via reallocate command. Also, if your ONTAP version is lower than 7.3, I recommend upgrading it, as 7.3.x is more efficient with sequential reads.
Finally, FAS2050 CPU is really a slow one, I am afraid:
http://communities.netapp.com/message/62442#62442
Regards,
Radek