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The benefit of compression in file systems primarily lies in its ability to reduce the amount of disk space used by files. When files are compressed, the system uses algorithms to encode the data in a more efficient manner, which takes up less space on the storage medium. This is particularly important in environments where storage capacity is limited or costly, as it allows users to store more data without requiring additional physical storage resources.

This space-saving feature is crucial for managing large volumes of data effectively. For example, organizations can optimize their storage usage, leading to cost savings and more efficient management of storage resources. Moreover, compressed files can help improve the overall system performance by reducing the data volume processed during file transfers, even though compression itself might require some additional processing time when files are accessed. However, the primary and most immediate benefit of compression is indeed the significant reduction in disk space usage.

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