In an incremental backup, only modified files will be uploaded to the Backup Server. On the other hand, In-File Delta is applicable to the physical files to be uploaded to the Backup Server, does not matter whether it is a MS SQL database file, MS Exchange transaction log file or any normal file in a FileBackupSet. Specifically, only the changed blocks in comparison to the original file on the Backup Server (delta file) will be uploaded.
For each modified file, AZDS software would determine whether the entire file or only delta file should be uploaded. If the entire file is to be uploaded, the old version of the file will be moved to the Retention area. Else if only the delta file is to be uploaded, the previous delta files will be moved to the Retention area and the Data area should contain the original full backup file, checksum file and the latest delta file of this file.