From what I gather and researched, I would agree that log shipping would probably be the way to go.
Currently the backup strategy is just "Daily Full", but implementing custom log shipping in a way that it would be handled by just a few jobs (instead of jobs per database) wouldn't be that difficult.
I'm still not that clear on how it would impact the server having to tlog ship 500+ databases.
Do you have any ideas how to test/calculate/analyze this before-hand?
Thanks,