elREG writes to mention that Sun's ZFS now has built-in deduplication utilizing a master hash function to map duplicate blocks of data to a single block instead of storing multiples. "File-level deduplication has the lowest processing overhead but is the least efficient method. Block-level dedupe requires more processing power, and is said to be good for virtual machine images. Byte-range dedupe uses the most processing power and is ideal for small pieces of data that may be replicated and are not block-aligned, such as e-mail attachments. Sun reckons such deduplication is best done at the application level since an app would know about the data. ZFS provides block-level deduplication, using SHA256 hashing, and it maps naturally to ZFS's 256-bit block checksums. The deduplication is done inline, with ZFS assuming it's running with a multi-threaded operating system and on a server with lots of processing power. A multi-core server, in other words."