Data compression is the reduction of the number of bits which need to be saved or transmitted and the process is really important in the internet hosting field as data located on hard disk drives is generally compressed to take less space. You can find different algorithms for compressing information and they have different effectiveness based upon the content. Many of them remove just the redundant bits, so no data will be lost, while others erase unneeded bits, which leads to worse quality when the particular data is uncompressed. This process requires plenty of processing time, so a hosting server should be powerful enough so as to be able to compress and uncompress data right away. An illustration how binary code could be compressed is by "remembering" that there're five consecutive 1s, for example, rather than storing all five 1s.
