When a VM is restored from a local backup, the chunked data in backup storage is merged and imported into data storage. On non-distributed storage, the restored data is retained as a disk chain. On distributed storage, the disk chain is merged into a single disk file. For a new recovery, the restored disk data serves as an image cache from which a new VM is created. For an overwrite recovery, the restored disk path replaces the current path in the VM database record, after which the old VM files are deleted.
See Figure 1 for an illustration.Figure 1. Data Recovery