Fragmentation takes place when operating system cannot or will not allocate enough free space to store a complete file as one whole unit, but instead writes parts of it in gaps between other files. These gaps exist as they already held a file that operating system has marked as deleted or because operating system allocated excess space for file in the first place. Larger files and greater amount of files also influence on fragmentation and result in constant performance loss. Defragmentation is to solve these problems.
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Windows Server 2008