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It saves memory and CPU time, not bandwidth. We have a history of consistently exceeding our allotted memory/CPU limits, so anything which helps mitigate this problem can be considered a good thing (although since our hosting company moved us to a new physical machine a few weeks ago, we have been running very efficiently for the most part).
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"If you think you can, you can. And if you think you can't, you're right."
- Mary Kay Ash
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