Small Business Website Speed: Hosting Factors That Make a Difference

Introduction

For small business owners, website speed isn’t merely a technical consideration—it’s a critical business factor directly impacting customer experience, conversion rates, and search engine visibility. While design elements and content optimization play important roles in website performance, the underlying hosting infrastructure forms the foundation upon which all performance improvements must build.

According to Google research, as page loading time increases from one to three seconds, the probability of visitor bounce increases by 32%. This visitor abandonment directly translates to lost opportunities—potential customers who leave before even experiencing your business offering. For small businesses with limited marketing budgets, maximizing the value of each website visitor becomes particularly crucial.

This guide examines the specific hosting factors that meaningfully impact small business website performance, helping you distinguish between technical features that genuinely improve customer experience and marketing claims with limited practical benefit. By understanding these critical elements, you can make informed hosting decisions that align with your business objectives and customer expectations. Additionally, exploring various small business hosting solutions will allow you to identify those that cater specifically to the unique needs of your operations. Comparing factors such as uptime reliability, customer support, and scalability can help you pinpoint the best options that will grow along with your customer base. Armed with this knowledge, you can enhance your online presence and ensure a seamless experience for your users.

Why Website Speed Matters for Small Businesses

Before examining specific hosting factors, it’s important to understand the business implications of website speed for smaller organizations competing against larger entities with greater resources.

The Customer Experience Connection

Website performance creates immediate impressions that influence customer perception of your business credibility and professionalism. According to consumer behavior research, 88% of online consumers are less likely to return to a site after a poor experience, with slow loading speed cited as the primary complaint.

For small businesses without established brand recognition, these initial impressions carry particular weight. While customers might tolerate performance issues from familiar major brands, they typically show less patience with unknown small businesses. According to user experience studies, visitors form initial impressions of business credibility within 50 milliseconds of page loading, with design elements and performance playing equal roles in this assessment.

The mobile experience compounds these effects, with 53% of mobile visitors abandoning sites that take longer than three seconds to load. With mobile traffic now representing 54.8% of global website traffic (2023 data), optimizing for mobile performance has shifted from optional to mandatory for business competitiveness.

The Conversion Rate Impact

Performance improvements directly translate to business outcomes through enhanced conversion rates across all website objectives. According to Cloudflare research, every 100ms improvement in website speed increases conversion rates by approximately 7% for e-commerce operations. This relationship extends beyond direct sales to all conversion goals—lead generation, email signups, and information requests all show similar sensitivity to performance.

The financial implications become particularly significant when quantified. For a small business generating $100,000 annually through their website, a modest 20% improvement in website speed could potentially increase revenue by $14,000 annually through conversion improvements alone—an ROI far exceeding typical performance optimization costs.

The Search Visibility Effect

Since Google’s Page Experience Update fully implemented Core Web Vitals as ranking factors, website performance has gained direct search engine optimization implications. Google explicitly considers loading performance, interactivity, and visual stability in ranking determinations, with measurements captured from actual user interactions rather than controlled tests.

According to SEO performance analysis, websites meeting Google’s Core Web Vitals thresholds typically achieve 10-30% higher organic traffic compared to similar sites with poor performance metrics. For small businesses with limited SEO budgets, hosting-level performance optimizations provide among the highest returns on investment for improving search visibility.

Critical Hosting Factors Affecting Performance

With the business impact established, let’s examine the specific hosting elements that meaningfully influence website speed, particularly for small business applications.

Server Hardware: The Foundation of Performance

The physical infrastructure supporting your website creates the base level upon which all other optimizations build. Several specific hardware elements contribute to measurable performance differences:

Storage Technology: The transition from traditional Hard Disk Drives (HDD) to Solid State Drives (SSD) represents perhaps the most significant hardware advancement for website performance. According to comparative benchmarks, SSD-based hosting delivers:

• 20x faster data access speeds
• 3x lower latency for database operations
• 40-80% faster page generation for database-driven websites

These improvements directly impact user experience, with identical websites typically loading 30-50% faster on SSD hosting compared to HDD equivalents. For content management systems like WordPress (powering approximately 43% of small business websites), this improvement becomes particularly pronounced when navigating between pages or performing search functions.

CPU Quality and Allocation: Processing power directly impacts how quickly your server can execute code and assemble page content. While technical specifications like clock speed and generation matter, the practical measure for small businesses comes through CPU allocation—how much processing capacity your account receives compared to others sharing the infrastructure.

According to performance analysis, websites on hosting plans with defined CPU allocation (typically expressed as dedicated vCores or guaranteed CPU percentage) demonstrate 2-3x better consistency in response times compared to plans with unrestricted sharing. This consistency particularly benefits conversion-sensitive operations like checkout processes where performance variability directly impacts abandonment rates.

RAM Availability: Memory allocation determines how much information your website can process simultaneously without resorting to slower disk-based operations. According to resource utilization studies, WordPress websites typically require at least 2GB RAM for optimal performance, with WooCommerce or membership sites needing 4GB+ to maintain responsiveness during peak usage.

The performance impact becomes particularly evident during traffic spikes—websites with adequate memory maintain consistent performance at 5-10x their average traffic levels, while memory-constrained sites show significant degradation under identical conditions. For small businesses with seasonal traffic patterns or marketing promotions, this resilience directly affects revenue during critical high-volume periods.

Server Location: The Physical Reality of Digital Speed

The geographic positioning of servers relative to your target audience creates unavoidable physics-based performance implications. According to network analysis, each 1,000 miles of distance between servers and visitors adds approximately 15-30ms of latency regardless of internet connection quality.

This latency effect compounds with each server request required to render a page. For websites requiring 30-50 requests to fully load (typical for small business sites), distant servers can add 0.5-1.5 seconds of loading time compared to geographically optimized hosting. This difference creates a significant competitive disadvantage for businesses using hosting physically distant from their primary customer base.

The practical impact varies based on business model and target audience:

• Local Service Businesses: Benefit substantially from hosting in the same geographic region as their service area, gaining 30-50% faster loading for local customers compared to distant hosting.
• Regional E-commerce: Should prioritize hosting in their primary sales region, as conversion data shows 15-25% higher completion rates when server location aligns with customer concentration.
• International Audiences: Require different solutions like Content Delivery Networks (discussed later) to overcome the limitations of single-location hosting.

For most small businesses with geographically concentrated customer bases, selecting hosting with data centers in their primary market provides among the most cost-effective performance improvements available, often delivering greater real-world speed improvements than more expensive hosting with distant premium infrastructure.

Resource Allocation Models: Shared vs. Dedicated Resources

The method by which hosting providers allocate server resources among customers creates perhaps the most significant performance variable within similar price tiers. Understanding these allocation models helps small businesses identify hosting likely to deliver consistent performance rather than occasional speed.

Oversold Shared Hosting: The traditional economic model of budget hosting places many websites on a single server with no guaranteed resource allocation. This approach leads to what industry professionals call the “noisy neighbor problem,” where resource-intensive websites negatively impact all others sharing the infrastructure. According to hosting analysis, websites on heavily oversold platforms typically experience 200-400% performance variation throughout the day based on the activities of unrelated websites sharing their server.

Resource-Guaranteed Hosting: More performance-focused providers implement guaranteed minimums for critical resources (CPU, RAM, concurrent connections) regardless of neighboring activity. According to comparative testing, hosting with defined resource allocations delivers 70-85% more consistent performance compared to unlimited plans at similar price points. This consistency particularly benefits conversion-sensitive websites where performance predictability directly impacts business results.

Container-Based Isolation: Modern hosting architectures using containerization technologies like Docker provide enhanced isolation between accounts while maintaining economic efficiency. According to performance consistency testing, container-based hosting typically delivers 40-60% better performance stability compared to traditional shared hosting while offering 90-95% of the consistency benefits of dedicated resources at lower price points.

For small business applications, the practical performance implications of resource allocation often outweigh raw specification differences when comparing hosting options. A modest server with guaranteed resources typically delivers better real-world performance than a theoretically more powerful platform with unpredictable resource availability.

Advanced Technologies Making Meaningful Differences

Beyond basic infrastructure considerations, several specific technologies provide substantial performance improvements particularly relevant for small business websites.

Content Delivery Networks (CDNs)

CDN technology addresses the geographic limitations of traditional hosting by distributing website content across global server networks, delivering resources from locations closest to each visitor. According to performance analysis across diverse business websites, CDN implementation typically delivers:

• 40-60% faster loading for visitors geographically distant from your origin server
• 70-80% reduction in image loading time across all visitors
• 65-95% mitigation of traffic spike impacts during high-demand periods

The business impact extends beyond simple speed improvements to include enhanced reliability during traffic surges—precisely when performance matters most for promotional activities or media mentions. According to traffic handling analysis, websites with CDN integration typically maintain 95%+ uptime during traffic spikes that would cause 60-80% availability reduction for non-CDN equivalents.

For small businesses, CDN technology has transitioned from luxury to practical necessity as:

1. Integration has simplified dramatically through one-click enablement in quality hosting platforms
2. Costs have decreased substantially, with many business-focused hosting plans including CDN services
3. Customer expectations for consistent performance have increased regardless of their location

According to implementation analysis, CDN technology now represents one of the highest ROI performance investments available to small businesses, particularly those serving customers beyond their immediate geographic region.

Caching Technologies and Optimization

Modern caching systems dramatically reduce the processing requirements for website delivery by storing pre-generated content rather than creating it on-demand for each visitor. Several specific caching approaches offer particular benefits for small business websites:

Server-Level Caching: Technologies like Redis, Memcached, or Varnish implemented at the hosting level significantly reduce database load and PHP processing requirements. According to performance benchmarks, properly implemented server caching typically improves page generation time by 70-85% for dynamic websites like WordPress, particularly benefiting pages requiring complex database queries like e-commerce product catalogs or membership directories.

Object Caching: More granular caching systems store individual components rather than entire pages, providing performance benefits even for dynamic or personalized content. According to implementation analysis, object caching typically reduces database queries by 80-95% while maintaining full functionality for user-specific content like shopping carts or account information.

Browser Caching Directives: Proper configuration of expiration headers and cache-control directives determines how effectively visitors’ browsers store website components between visits. According to user session analysis, optimized browser caching typically reduces page load times by 30-50% for returning visitors, who represent the highest-converting segment for most small businesses.

The performance impact of these caching technologies becomes particularly significant for content management systems like WordPress, WooCommerce, or similar platforms commonly used by small businesses. According to comparative testing, identical WordPress sites with and without proper caching typically show 300-500% differences in loading time and server resource requirements during normal operations.

For small businesses, the most significant development in caching technology has been its integration into quality hosting platforms as standard features rather than requiring technical implementation. Hosts offering integrated caching solutions typically deliver 2-3x better real-world performance compared to similar-specification hosts requiring manual caching configuration.

PHP Optimization and Alternative Technologies

For the approximately 79% of small business websites running PHP-based applications (including WordPress, WooCommerce, and most common CMS platforms), PHP configuration and optimization create substantial performance implications:

PHP Version Impact: Each major PHP version release delivers significant performance improvements, with PHP 8.x executing 30-45% faster than PHP 7.2 and 100-200% faster than PHP 5.x still used on budget hosting. According to compatibility analysis, approximately 95% of small business websites can utilize current PHP versions without modification, making this among the simplest yet most impactful optimizations available.

PHP Process Management: The method used to handle PHP execution significantly impacts performance under various traffic conditions. PHP-FPM (FastCGI Process Manager) delivers 40-70% better performance and concurrency handling compared to older mod_php implementations, particularly benefiting websites experiencing traffic spikes or sustained moderate traffic.

OpCache Configuration: Proper optimization of PHP’s operation code cache dramatically reduces processing requirements for repeated page generation. According to performance testing, properly configured OpCache typically reduces PHP execution time by 40-60% while reducing server CPU load by similar percentages.

Alternative Execution Models: Some hosting providers offer alternative execution technologies like LiteSpeed Web Server with LSAPI or HHVM that provide performance advantages for specific applications. According to benchmark testing, LiteSpeed typically delivers 2-4x better WordPress performance compared to standard Apache/PHP configurations, particularly for concurrent connections and uncached content.

For small business websites, these PHP optimizations often deliver more meaningful real-world performance improvements than hardware upgrades at similar price points. According to cost-efficiency analysis, PHP optimization typically delivers 3-5x greater performance improvement per dollar compared to hardware scaling for typical WordPress-based business websites.

Making Informed Hosting Decisions

With these technical factors explained, let’s examine practical approaches for small business owners to evaluate and select performance-optimized hosting aligned with their specific needs.

Performance Benchmarking Approaches

Moving beyond marketing claims requires objective measurement of actual hosting performance relevant to small business applications:

Real-World Testing Methodology: Rather than relying on synthetic benchmarks, evaluate hosting performance using actual business websites with realistic content. According to comparative analysis, testing with a standard WordPress installation and imported content from your actual website provides 3-4x more accurate performance predictions than synthetic speed tests or provider claims.

Key Metrics to Prioritize:

1. Time to First Byte (TTFB): Measures server response speed independent of page complexity, with 200-300ms representing good performance for small business applications. According to correlation analysis, TTFB shows 70-80% predictive value for overall page performance.
2. Load Testing Behavior: How performance changes under concurrent visitors reveals resource allocation reality beyond single-user tests. According to scalability testing, quality business hosting should maintain consistent performance up to at least 50 concurrent connections before showing significant degradation.
3. Geographic Performance Variation: Testing from multiple locations reveals how consistently hosting performs across your target market. According to user distribution analysis, most small businesses receive visitors from a significantly wider geographic area than anticipated, making regional performance consistency important even for seemingly local businesses.
4. Cached vs. Uncached Performance: The performance difference between first visit and subsequent page views reveals caching effectiveness. According to user behavior studies, excessive first-visit delays impact conversion rates almost as significantly as overall average speed due to abandonment before caching benefits apply.

Testing Tools and Resources:

• GTmetrix and WebPageTest provide comprehensive performance analysis from multiple geographic locations
• KeyCDN’s performance test specifically measures TTFB from global perspectives
• Load Impact and K6 offer accessible load testing for evaluating concurrent visitor handling
• Chrome DevTools includes network throttling to simulate mobile connection performance

Budget Allocation Effectiveness

For small businesses with constrained technology budgets, understanding the relative impact of different performance investments helps maximize return on limited resources:

Highest-Impact Investments (Based on performance improvement per dollar):

1. Appropriate Geographic Hosting: Selecting hosting physically located in your primary market typically delivers 30-50% performance improvement for local visitors with minimal or zero additional cost compared to distant alternatives.
2. SSD-Based Hosting: The transition from HDD to SSD storage typically delivers 30-50% overall performance improvement for 10-20% price premium, representing exceptional value for small business websites.
3. Integrated Caching Solutions: Hosting with pre-configured caching typically delivers 200-300% performance improvement compared to uncached alternatives for 20-40% price premium, offering among the highest ROI of any performance optimization.
4. Current PHP Versions: Hosting supporting current PHP versions (8.x) typically delivers 30-45% performance improvement with zero additional cost compared to outdated alternatives, representing pure performance gain without investment.

Lower-Impact Investments (Context-dependent value):

1. Extreme Hardware Specifications: CPU and RAM allocations beyond baseline business requirements (2-4 CPU cores, 4-8GB RAM) typically show diminishing returns for standard small business websites, with each doubling of resources delivering progressively smaller performance improvements.
2. Premium Domain Name Servers: While DNS response time affects initial connection speed, its overall contribution to total page load typically represents less than 5% of user-perceived performance for most business websites.
3. Specialty Server Software: Custom server configurations may deliver benchmark improvements but often require technical expertise to maintain and troubleshoot, potentially increasing total cost of ownership despite performance benefits.

According to cost-efficiency analysis across diverse small business websites, allocating 60-70% of available hosting budget to the highest-impact factors typically delivers 80-90% of potential performance improvements, making these priorities particularly valuable for budget-constrained organizations.

Business-Specific Considerations

Different small business models have distinct performance priorities that should inform hosting selection:

E-commerce Operations:

Database performance typically represents the primary bottleneck for online stores, with product catalog search and checkout processes placing particular demands on database systems. According to e-commerce performance analysis, dedicated database resources or optimization (either through VPS/dedicated hosting or specialized e-commerce platforms) typically deliver 2-3x better catalog and checkout performance compared to standard shared hosting.

Cart abandonment data shows product pages and checkout processes have dramatically different performance sensitivity thresholds:

• Product pages: Each 1-second improvement reduces abandonment by approximately 7%
• Checkout process: Each 1-second improvement reduces abandonment by approximately 15-20%

This differential sensitivity makes performance investment in checkout processing particularly valuable for e-commerce businesses.

Service Businesses:

Lead generation websites typically show highest performance sensitivity in form submission processes, where delays directly impact completion rates. According to conversion optimization research, improving form submission speed by 1 second typically increases completion rates by 10-15%, making this interaction point particularly important.

Mobile performance carries heightened importance for service businesses, as 60-70% of service inquiries now originate from mobile devices. According to mobile conversion analysis, service businesses meeting Google’s mobile performance standards typically achieve 20-30% higher lead generation rates compared to those failing these thresholds.

Content-Focused Businesses:

For blogs, publications, and content-monetization businesses, consistent performance across all content pages influences both reader retention and advertising revenue. According to publishing performance analysis, improving average page load time from 4 seconds to 2 seconds typically increases pages-per-visit by 25-35% and ad viewability rates by 15-25%, directly impacting advertising revenue.

Content-heavy businesses particularly benefit from CDN implementation, with media-optimized content delivery typically reducing bounce rates by 15-20% compared to origin-only delivery, especially for image and video-rich content most common in these business models.

Implementation Strategies for Small Businesses

Understanding hosting performance factors represents only the first step—implementing this knowledge requires practical approaches accessible to small business owners with varying technical capabilities. By focusing on understanding web hosting basics, entrepreneurs can make informed decisions that align with their business goals. Resources such as user-friendly guides, online courses, and community forums can empower even the least tech-savvy owners to optimize their hosting choices. This knowledge enables them to enhance their website performance, improve user experience, and ultimately drive growth.

Evaluating Your Current Hosting Performance

Before considering changes, establish objective measurements of your existing hosting performance to identify specific improvement opportunities:

Baseline Performance Assessment:

1. Conduct comprehensive speed testing using services like GTmetrix, PageSpeed Insights, and WebPageTest from multiple geographic locations relevant to your customer base. According to testing methodology analysis, multiple tools provide complementary insights that create more actionable improvement roadmaps than single-tool testing.
2. Identify specific performance bottlenecks by examining waterfall charts showing individual resource loading sequences. According to performance optimization research, approximately 80% of loading delays typically stem from 20% of resources or configuration issues, making targeted improvement highly effective.
3. Compare mobile and desktop performance metrics separately, as they often reveal different optimization priorities. According to device-specific analysis, mobile performance typically lags desktop by 30-50% even on well-optimized sites, creating different threshold requirements for satisfactory performance.
4. Benchmark your website against direct competitors using identical testing methodologies and locations. According to competitive analysis, performance advantages of 20-30% typically create measurable competitive differentiation in user behavior and conversion rates.

Performance Gap Analysis:

With baseline measurements established, identify specific hosting-related factors limiting your current performance:

1. Server Response Time Issues: TTFB consistently exceeding 600ms indicates fundamental hosting performance limitations rather than optimization problems. According to bottleneck analysis, approximately 40% of small business websites suffer primarily from inadequate hosting response time rather than content optimization issues.
2. Geographic Performance Variation: Loading time differences exceeding 50% between geographic regions suggest server location mismatch with target audience. According to audience analysis, approximately 35% of small businesses serve customers from significantly wider geographic regions than their hosting infrastructure optimally supports.
3. Inconsistent Performance Patterns: Variations exceeding 100% in page load time between tests at different times suggest resource contention issues on shared infrastructure. According to reliability analysis, performance consistency often influences customer experience more significantly than average speed, particularly for repeat visitors.
4. Scalability Limitations: Significant performance degradation under moderate load testing (10-20 concurrent users) indicates fundamental capacity constraints. According to stress testing results, approximately 60% of small business websites experience critical performance degradation at traffic levels they occasionally encounter during promotions or media mentions.

Migration vs. Optimization Decision Framework

Based on performance assessment, determine whether optimization of existing hosting or migration to new infrastructure better serves your business needs:

Optimization Pathway Appropriate When:

1. Server response times (TTFB) remain under 400-500ms for your primary geographic market
2. Performance issues concentrate in specific content elements rather than fundamental response
3. Your current hosting offers unused configuration options or upgrades addressing identified limitations
4. Business continuity requirements make migration timing challenging

According to improvement pathway analysis, approximately 30-40% of small business performance issues can be resolved through optimization of existing hosting without migration, typically delivering 40-60% performance improvement through configuration changes.

Migration Pathway Appropriate When:

1. Server response times consistently exceed 500-600ms despite optimization attempts
2. Geographic mismatch exists between server location and primary customer base
3. Current hosting lacks essential technologies (SSD, current PHP versions, etc.)
4. Performance varies dramatically throughout the day regardless of your website traffic

According to hosting transition analysis, websites migrating from performance-limited hosting to optimized environments typically experience 100-200% performance improvement, with corresponding improvements in business metrics including 15-25% conversion rate increases for performance-sensitive operations.

Practical Implementation Approaches

For small businesses implementing hosting performance improvements, several approaches offer accessible paths forward regardless of technical expertise:

Working With Existing Hosting Providers:

1. Request specific performance optimizations identified in your assessment, as many hosts offer configuration adjustments at no cost. According to support response analysis, approximately 60% of hosting providers implement customer-requested optimizations without additional charges when specific improvements are requested.
2. Evaluate available upgrade paths addressing identified limitations, particularly SSD storage, dedicated resource allocation, or geographic location options. According to upgrade analysis, targeted hosting upgrades typically deliver 3-5x better performance improvement per dollar compared to complete migrations when addressing specific identified limitations.
3. Request server-side caching enablement if not currently active, as most hosts offer this capability even if not enabled by default. According to implementation statistics, server-level caching typically delivers 70-80% performance improvement for dynamic websites with minimal configuration requirements.

Selecting New Hosting Environments:

1. Prioritize providers with data centers in your primary market regions, as geographic optimization typically delivers 30-50% performance improvement independent of other factors. According to location analysis, approximately 60% of small businesses select hosting without considering geographic optimization despite its substantial impact.
2. Evaluate resource allocation models rather than raw specifications, prioritizing guaranteed minimums over theoretical maximums. According to performance consistency testing, hosting with defined resource guarantees typically delivers 2-3x better performance under load compared to “unlimited” plans at similar price points.
3. Verify support for essential technologies including SSD storage, current PHP versions (8.x), server-side caching, and CDN integration. According to technology impact analysis, these four factors collectively influence approximately 80% of hosting-related performance outcomes for typical small business websites.
4. Consider business-specific hosting specialization, particularly for e-commerce, membership, or high-traffic content sites with distinct performance requirements. According to specialization analysis, platform-optimized hosting typically delivers 40-60% better performance for specific applications compared to general-purpose hosting at equivalent price points.

Non-Technical Implementation Options:

For small business owners without technical expertise or resources for direct implementation:

1. Utilize managed migration services offered by many quality hosting providers, which typically handle complete performance-optimized transitions for $100-300 depending on website complexity. According to service quality analysis, professionally managed migrations typically achieve 90-95% of potential performance improvements without requiring customer technical involvement.
2. Consider performance-focused website care plans from reputable service providers that include hosting optimization as a standard component. According to service comparison, professionally managed website performance typically costs $50-150 monthly for comprehensive optimization but delivers 30-50% better results than self-implementation for non-technical business owners.
3. Evaluate Website-as-a-Service options bundling optimized hosting with technical management at fixed monthly costs. According to total cost analysis, all-inclusive approaches often provide better value than separate services for small businesses without internal technical resources, typically delivering 20-30% cost savings compared to unbundled services.

Conclusion

For small businesses competing in increasingly demanding digital marketplaces, website performance has transitioned from technical preference to business necessity with direct impact on customer acquisition, conversion, and retention metrics. While numerous factors influence overall website speed, hosting infrastructure creates the foundation upon which all other optimizations build.

The most significant hosting factors impacting small business performance include server hardware (particularly storage technology), geographic location relative to target markets, resource allocation models, and implementation of performance technologies like caching, CDN integration, and PHP optimization. Understanding these elements helps small business owners distinguish between meaningful improvements and marketing claims when evaluating hosting options.

By applying the assessment methodologies and implementation approaches outlined in this guide, small businesses can achieve substantial performance improvements without excessive technical complexity or cost. The business impact of these improvements—typically 15-30% higher conversion rates and corresponding improvements in search visibility—generally delivers return on investment within 3-6 months of implementation through directly improved business outcomes.

As customer expectations and search engine requirements continue evolving toward faster, more responsive experiences, performance-optimized hosting represents one of the most accessible and impactful investments small businesses can make in their digital presence and competitive positioning.

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