Data deduplication and compression are two examples of data reduction technologies. Storage vendor Quantum says that using deduplication, "Customers report an average 125 percent increase in backup performance, 87 percent fewer failed backup jobs, and typical disk capacity reductions of 90 percent or more—95 percent in virtual environments."

The "reductions of 90 percent" means a 10:1 deduplication ratio. For example a 1 terabyte system can effectively store 10 terabytes. These are high efficiencies that can change the way an enterprise backs up its data. Tape backup can be retired or reduced. Off-site backups can be updated over the Internet instead of depending on couriered magnetic tapes.

Examples of hardware and software solutions include EMC (Data Domain DDX, Global Deduplication Array, Avamar, Networker), Quantum DXi, Nexsan DeDupe SG, ExaGrid, Sepaton, Symantec (Backup Exec, NetBackup), CommVault, FalconStor, Permabit, NetApp, HP, Sun and IBM (Diligent, TSM Tivoli Storage Manager).

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