If you are planning out your NetVault Backup (NVBU) domain and plan to utilize NetVault SmartDisk (NVSD), you may be inclined to run NVSD on the NVBU server. However, deduplication is a CPU intensive process and can have a detrimental effect on your backups, NVBU Server stability and cause significant overall sluggishness when accessing the NVBU application. Additionally, running a deduplicated NVSD instance on a NVBU Client machine would have the same effect on the applications you are running. At the same time, the competition for CPU resources will degrade the performance of NVSD and it's ability to deduplicate the data you're storing.
Do not set up deduplicated instances of NetVault SmartDisk on a NetVault Backup server or client machine. All deduplicated NVSD instances MUST reside on their own separate dedicated server in order to ensure the best possible performance.