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In theory, on a reasonably fast PC, the processor is mostly idle during hard drive access.

A compressed file takes up less physical space, so the hard drive (being the slowest part in the system) has to read less physical data.

One could argue that the small additional amount of work for the processor to uncompress the data on the fly will not result in slowdown of the read operation, so hence my question:

If I activate drive compression on a Windows machine, can I positively affect data throughput at the expense of a somewhat higher CPU usage?

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good question, the answer is that it depends! Depends on the data being compressed mostly, if its highly compressible then compressing may speed things up, "may" because there are other factores like is this data transactional etc.. – user33788 Jun 25 '10 at 16:53
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Some discussion on the subject here

http://ask.metafilter.com/51652/Could-turning-on-disk-compression-actually-speed-up-disk-access

and here

http://arstechnica.com/civis/viewtopic.php?f=17&t=801882

too many variables for a direct answer.

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Well, obviously the topic is moot. I was hoping for somebody who had actually measured it instead of theorizing about it, but then again I acknowledge that this is something where you can't make absolute statements. – Tomalak Jul 2 '10 at 17:11
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One would think that the processor overhead would be less than the drive access overhead and that compressed partitions would be faster. However, my experience suggests that it's almost always slower compressed...

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