Replication Data Compression

You can configure
vSphere Replication
to compress the data that it transfers through the network.
Compressing the replication data that is transferred through the network saves network bandwidth and might help reduce the amount of buffer memory used on the
vSphere Replication
server. However, compressing and decompressing data requires more CPU resources on both the source site and the server that manages the target datastore.
The
ESXi
host on the source site compresses the data, and the
vSphere Replication
server on the target site passes off the data to the
ESXi
host, where the host decompresses the data, and writes it to disk.