Deduplication and Azure Backup

Q. Does Azure Backup deduplicate data across VMs?

A. Azure Backup does not deduplicate across VMs in the Azure Backup vault however Azure Backup works by only sending and storing the modified blocks of protected data which means only the delta change is stored for each backup optimizing space used. If you utilize System Center Data Protection Manager or Azure Backup Server then the deduplication feature of NTFS is utilized for the on-premises backup.