A data de-duplication application de-duplicates redundant data in the pooled storage capacity of a virtualized storage environment. The virtualized storage environment includes a plurality of storage devices and a virtualization or abstraction layer that aggregates all or a portion of the storage capacity of each storage device into a single pool of storage capacity, all or portions of which can be allocated to one or more host systems. For each host system, the virtualization layer presents a representation of at least a portion of the pooled storage capacity wherein the corresponding host system can read and write data. The data de-duplication application identifies redundant data in the pooled storage capacity and replaces it with one or more pointers pointing to a single instance of the data. The de-duplication application can operate on fixed or variable size blocks of data and can de-duplicate data either post-process or in-line.