An architect is discussing the design of a vSphere solution with a customer.

AES-NI BIOS setting:

Encryption, especially VM Encryption in vSphere, is CPU-intensive because it requires the processing power to encrypt and decrypt data. By enabling AES-NI (Advanced Encryption Standard New Instructions) in the BIOS, ESXi hosts can take advantage of hardware-based acceleration for encryption tasks. This reduces the load on the CPU, thus improving the performance of encryption operations and lowering CPU utilization.

De-duplication effectiveness:

When data is encrypted at the ESXi host level (via VM Encryption), the deduplication process on the storage system becomes less effective. This is because encrypted data is presented as random data, meaning that even identical data blocks will appear different due to encryption. Therefore, deduplication technologies that rely on identifying duplicate data blocks will not be able to achieve the same level of efficiency when the data is encrypted at rest.