In many cases, XML may not impact bandwidth as much as it does other layers of processing during a message exchange....
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The most common bottlenecks I've encountered occur during the pre- and post-processing of a message upon transmission or receipt. Message handlers, parsers, transformation processors all may be involved in processing message contents, prior to the data being sent or prior to the data being received in a form understandable by the recipient software program. To improve performance, these are the areas many organizations need to focus on by either increasing the capacity of servers and/or purchasing enterprise-level processors (and maybe even specialized hardware accelerators).
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