Yes, the backup is likely compressed. According to the Azure Backup documentation, data backed up from Azure Backup Agent, DPM, and Azure Backup Server is compressed and encrypted before being transferred. This means that the size of the data in the vault is typically 30-40% smaller than the original data selected for backup. Therefore, if your C: drive has 165 GB of data and the backup to the external SSD is 79 GB, it suggests that compression has occurred during the backup process.
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