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I'm in an environment where profile space is a premium, and most users have "frozen" machines, meaning that on restart, the C: drive is returned to its original state. Cached Exchange Mode sounds interesting to me, but I'm wondering if we can take advantage of it without causing other issues.

Where in the file system does the cached data get stored? Is it in the profile? A temp folder? Is the cached file secured in some way to keep others from seeing it?

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Where in the file system does the cached data get stored? Is it in the profile? A temp folder?

In outlook 2000/2003 and 2007 it was in the user profile. I suspect 2010 does the same.

Is the cached file secured in some way to keep others from seeing it?

It is stored in the user profile of the user. This means only the user and an administrator can access it. Unless you give your users administrative rights this should not be a problem.

If the computer gets stolen and you have no disk encryption then the thief can access the ost file. There are tools to convert .ost (cached exchange mode) files to .pst files, which then can be opened. This might get blocked if the outlook user decided to prevent access with a password. (I have no idea how good that encryption is. It might be trivial to break it).

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