Data deduplication is a technique to reduce storage needs by eliminating redundant data in your backup environment. Only one copy of the data is retained on storage media, and redundant data is replaced with a pointer to the unique data copy.
The goal is to store more data in less space by segmenting files into small variable-sized chunks (32–128 KB), identifying duplicate chunks, and maintaining a single copy of each chunk. Redundant copies of the chunk are replaced by a reference to the single copy. The chunks are compressed and then organized into special container files in the System Volume Information folder.