> Is DSML used a lot ?

It is used in some Java application servers usually around workflow
procedures or engines since those are very XML oriented.  I've not seen
it in-the-wild anywhere else.

> Does it tend to replace LDIF, or do they have different purpose ?

You could replace LDIF with DSML if all your tools supported it.
Personally I think it would be really nice as LDIF (like iCal, vCard,
etc..) is yet-another-stupid-file-format that needs to be parsed and
diddled with.  Whereas DSML, being XML, you can just use XPath / XSLT to
do/extract whatever you want.  But in reality we are stuck with LDIF.


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