Deduplication saves space on a hard drive by only keeping one copy of any files that may be identical. For example, a large bunch of staff might all receive an email with an attachment and then all save that attachment to a network drive on a server - all to different folder locations like into their own home drive. The Deduplication will recognise files that are the same and only keep one and link all instances to that one file - resulting in saving space.
I have in a test environment, 6 files VHDX "parent disks" hosted on a 60 gb SSD hard drive used for Hyper-V role. This saves about 68% of total storage space. I think it's one of the conditions recommended because files VHDX "parent disks" are read-only and the SSD drive has no other reason to be written by other processes. Thus, the deduplication process is fully optimized.
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