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I am looking at creating a PostgreSQL database image (to run on Amazon EC2) and I have heard good things about XFS.

However, since ultimately you are running in a VM, the gain of XFS on EC2 might not be as great as on a barebone system.

Am I going to see a significant improvement with XFS on EC2?

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No, I do not think so.

You will not loose anything with XFS, but you will not gain much with it as you are much likely constrained by EC2. (This is more of an opinion than a fact.)

OTOH: I use XFS everywhere I can.

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