Mechanisms are provided for maintaining variable size deduplication segments using fixed size extents. Variable size segments are identified and maintained in a datastore suitcase. Duplicate segments need not be maintained redundantly but can be managed by updating reference counts associated with the segments in the datastore suitcase. Segments are maintained using fixed size extents. A minor increase in storage overhead removes the need for inefficient recompaction when a segment is removed from the datastore suitcase. Fixed size extents can be reallocated for storage of new segments.