An apparatus and method improving effective system throughput for replication of data over a network in a storage computing environment by using software components to perform data compression is disclosed. Software compression support is determined between applications in a data storage computing environment. If supported, compression parameters are negotiated for a communication session between storage systems over a network. Effective system throughput is improved since the size of a compressed lost data packet is less than the size of an uncompressed data packet when a lost packet needs to be retransmitted in a transmission window.