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A disk compression software utility increases the amount of information that can be stored on a hard disk drive of given size. Unlike a file compression utility, which compresses only specified files—and which requires the user to designate the files to be compressed—an on-the-fly disk compression utility works automatically through resident software without the user needing to be aware of its existence. On-the-fly disk compression is therefore also known as transparent, real-time or online disk compression.
When information needs to be stored to the hard disk, the utility compresses the information. When information needs to be read, the utility decompresses the information. A disk compression utility overrides the standard operating system routines. Since all software applications access the hard disk using these routines, they continue to work after disk compression has been installed.
Disk compression utilities were popular especially in the early 1990s, when microcomputer hard disks were still relatively small (20 to 80 megabytes). Hard drives were also rather expensive at the time, costing roughly 10 USD per megabyte. For the users who bought disk compression applications, the software proved to be in the short term a more economic means of acquiring more disk space as opposed to replacing their current drive with a larger one. A good disk compression utility could, on average, double the available space with negligible speed loss. Disk compression fell into disuse by the late 1990s, as advances in hard drive technology and manufacturing led to increased capacities and lower prices.
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