Data deduplication -- the process of detecting and removing duplicate data from a storage medium or file system -- is one of those simple ideas that gets complex in the implementation. Duplicate data may be detected at the file, bit, or block level, and the deduplication may be done at the client (source deduplication) or on the storage device itself (target deduplication).
Source: http://www.infoworld.com/t/storage/data-deduplication-197656?source=rss_storage
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