What’s common among these websites: Digg, MSN, Orkut, Reddit, Wikipedia, eBay, Blogger and Flickr. Besides being some of the most popular, they are also prone to the excessive bandwidth consumption. And believe it or not, if each one of these web sites was “Gzipped”, then everyone could potentially conserve 65-75% bandwidth. See this example report. That’s a potential bandwidth saving for the web service as well as the end-user.
So what is Gzip? It’s a utility which compresses data. Gzip can also be used for Internet data compression. Gzip is widely available as a filter for both Windows (and this) and Linux web servers; and it is integratable in web programming languages like PHP and ASP.NET (and this, and this).
Never-the-less, Gzipping your website is an ideal practice for small & medium scale web applications.