File Compression in Windows Server 2003

Windows Server 2003 includes two types of file and folder compression: NTFS-based file system compression and the compressed folders feature, which is equivalent to the various Zip file utilities that have been available from sources other than Microsoft.

Compression allows you to store more files on a volume because a compressed file takes up less space. Typically, files such as text files, documents, spreadsheets, and bitmaps will gain the most benefit from compression, because they generally contain a lot of blank space and redundant data. Other files such as compressed graphics files (JPEG, PNG), video files, or Zip files provide the least benefit because they already use their own form of compression.