One aspect of the present invention includes a configuration of a storage management system that enables the performance of deduplication activities at both the client (source) and at the server (target) locations. The location of deduplication operations can then be optimized based on system conditions or predefined policies. In one embodiment, seamless switching of deduplication activities between the client and the server is enabled by utilizing uniform deduplication process algorithms and accessing the same deduplication index (containing information on the hashed data chunks). Additionally, any data transformations on the chunks are performed subsequent to identification of the data chunks. Accordingly, with use of this storage configuration, the storage system can find and utilize matching chunks generated with either client- or server-side deduplication.