I have a database of 1.10gb size in Microsoft SQL Server 2005 and when I zipped this database, the file that contains this database will produce the size only 80 Mb.
There was no any free technique available for SQL server 2005 backup compression, database administrator could do it by using 3rd party tools.
See this blog: http://sqlblogcasts.com/blogs/davidwimbush/archive/2009/09/24/backup-compression-on-sql-2005.aspx
& 3rd party tool – SQL safe lite, you can find related information @ http://www.idera.com/Products/SQL-toolbox/SQL-safe-lite/ I have not used this software so try it on your own risk.
Also this: http://www.loudsteve.com/2009/01/21/hack-together-backup-compression-in-sql-2005/
Please note that you must Shrink DB before backup and free unused allocated space.
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