Drive Space
DriveSpace (initially known as DoubleSpace) is a disk compression utility supplied with MS-DOS starting from version 6.0. The purpose of DriveSpace is to increase the amount of data the user could store on disks, by transparently compressing and decompressing data on-the-fly. It is primarily intended for use with hard drives, but use for floppy disks is also supported. There have even been people who claim to have compressed USB flash drives and other removable media.
Read more about Drive Space: Overview, Reception and Incompatibilities, Bugs and Data Loss, Add-ons, Compression For Other Common Windows File Systems, Support Outside Microsoft
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