Starting with Microsoft System Center 2016 DPM, Microsoft introduced a new feature called Modern Backup Storage (MBS). MBS is supported when DPM is installed on Windows Server 2016 or later. MBS helps to reduce the overall backup storage space, and Microsoft claims this is by a factor of around 50%. It also reduces the amount of I/O and the load placed on the backup server by using Resilient File System (ReFS) technology, which is available in Windows Server 2016 and Windows Server 2019.
To be able to configure Modern Backup Storage, you will need to have some primordial storage (unallocated storage capacity) available and connected to the DPM server that you are currently managing.