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Are back-up files.contiguous?

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Gordon, welcome to these public User Forums.

The answer to your question is really one that would apply to any large files stored on any disk drive, which is that such files can be fragmented if the available free space on the drive forces this to be the case.

ATI will attempt to store the files in contiguous storage is the space is available to allow this, but otherwise, as with any other large files, they will be place in available space spread across the drive.

If you are running Windows 10, then the integrated 'maintenance' tasks will try to maintain an acceptable level of fragmentation on all connected drives.

There is no defragmentation utility just for Acronis backup files, only the tools provided by the OS or third-party applications.  SSD drives do not need to be defragmented!