I appreciate all the comments and discussion.

@cdiebolt .. The question was a bit tricky with the language. However the backup/restore operations are not affected as per the performance of the sql server. However I agree that the size of the backup/restore is altered.

@hugo Kornelis.. Thanks fot the detailed explanation on all the options. Though I have some argument on the

log shipping part that you mentioned. It's definitely true that the log of the compressed database does not have compressed information and hence does not have any size compression. On the other hand the backup/restore has compressed size because of the compressed database. Another thing about the log compression that you mentioned is actually exploited in the Mirroring in SQL Server 2008 refer this link http://msdn.microsoft.com/en-us/library/cc645581.aspx

@CirquedeSQLeil.. Didnt get much of what you intended to say but logs are not affected by database compression.