I'll take a stab at this, but if I am wrong I hope someone corrects me :)
The example I will use is OST with a DataDomain.
My understanding is that when using a DataDomain, the block (of data) must be sent from the client to the OST device (DataDomain) before it can be determined if the block is identical to one already stored on the DataDomain from a previous backup. If the block is indentical, it basically stores a pointer, if not, it saves the data.
Now Puredisk I believe can do this, because you can install a PureDisk client on the client your backing up. The client determines what needs to get sent across the wire, and thus if a previous backup sent that block, it does not send it this time around.
Regards,
Benjamin Schmaus