I think we can consider this one resolved now.

** Changed in: nova
       Status: Confirmed => Invalid

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https://bugs.launchpad.net/bugs/745985

Title:
  Support compressed raw images

Status in OpenStack Compute (Nova):
  Invalid

Bug description:
  We should support images that are compressed.  In particular, this is
  useful for raw images, which be 8G but mostly zeroes, and compress
  down to e.g. 250MB.

  Qcow is sparse, but isn't compressed I believe.

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