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It has a little bit different performance impact. The knock on target-based
data deduplication is that you aren't really reducing the amount of data you are sending over the network. So you are still sending the full amount of data over the network every time you do a
backup. You are reducing the amount of data that you store, but there is always going to be that performance hit with target-based deduplication.
Check out the entire Data Deduplication FAQ.