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Gzip is allright it works great for text but not all that great images and graphics so you dont really save much bandwidth.
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Your right there are other ways to get a good compresion. however the fact that this is free, and that there is tons of support on the opensource network means that this will most likely be the best solution.
Also, he said 150K HTML not 150K html and images.
Take galleryfreak.com for example. its a Thumb TGP. The html alone is 76K using mod_gzip you would most likely see results of compresion down to 8-16K, 8 if its cached.
the use of compresion on this would result in substantial savings in bandwidth costs. assuming of course you have more than one user.
a test of 1000 users would be:
standared: 76 * 1000 = 76,000 KB
mod_gzip: 16 * 1000 = 16,000 KB
potential savings of 60,000kb per 1000 users or 58MB. Now times that by hundreds of thousands of users.
Thats a decent savings.