A system for managing de-duplication of data in a virtualization environment, that includes a plurality of nodes, wherein the plurality of nodes implements a virtualization environment, a plurality of primary storage devices that are accessed by virtual machines in the virtualization environment, and wherein data undergoes de-duplication in the virtualization environment such that an instruction to store a data item that is issued by a virtual machine is not duplicatively stored if the data item is already stored in the plurality of the primary storage devices.