This struck me as a very odd claim. I've worked with Pure and Dell/EMC arrays and for VMWare workloads they normally got at least 3:1 dedupe/compression savings. Only storing one copy of the base VM image works extremely well. Dedupe/compression works really well on syslog servers where I've seen 6:1 savings.
The effectiveness of dedupe is strongly affected by the size of the blocks being hashed, with the smaller the better. As the blocks get smaller the odds of having a matching block grow rapidly. In my experience 4KB is my preferred block size.