What happens to "new" data that a Steelhead appliance has not seen before?

Drop the new data

Create a tunnel to optimize the data

Scalable Data Referencing creates and sends new reference pointers to the peer Steelhead appliance

Compress the data using Lempel-Ziv and sends it to the peer Steelhead appliance

Sends only the references for the data to the counterpart Steelhead appliance