On Sat, 2007-12-01 at 14:03 -0500, Mark Nielsen wrote:
> I think you'll get the same sort of thing if you gzip the file. I've 
> gzip'd some 20G xen images down to around 2G.

Another nice way to compress disk images is with 'qemu-img convert',
outputting to a compressed qcow.

David


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