[From SQL Server Performance
SQL Server 2008 introduces a new feature called Database Backup Compression. This feature allows DBAs to compress SQL Server 2008 database backups natively rather than taking uncompressed native SQL Server database backups or using a third-party tool. By default, database backup compression is turned off in the SQL Server 2008. At present this feature is only available in the Enterprise Edition of SQL Server 2008. However, all editions of SQL Server 2008 allow the restoration of compressed database backup.
Using the Database Backup Compression feature, a DBA can perform Full, Differential and Transactional log compressed backups. There are two ways to enable Database Backup Compression (DBC). The first being enabling it at the SQL Server Instance Level and secondly by specifying the WITH COMPRESSION clause at the time of backup. This article provides a step by step guide on how to configure and use the Database Backup Compression feature in SQL Server 2008.
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