This paper provides general information for using Data Domain deduplication storage systems to backup virtual machines deployed with VMware Infrastructure 3 (VI3). Topics include an overview of VI3 components and various methods of backing up data in VMDK images and Guest OS files for discrete recovery – either locally or remotely in a DR site. But the central focus is on which backup approach is best using specific criteria, and by extension, how can Data Domain deduplication storage systems be leveraged to assist in online restore and replication to a DR site.