By default Magento comes with enabled caching thus avoiding repetition of some of the heaviest operations. However, this is not always enough for Magento to run fast.
Speeding up Magento is not always an easy task and commercial extensions for this purpose are expensive. That's why we will offer you two easy to follow steps which can significantly increase Magento Performance:
1. Enable the compiler which comes with Magento by default. You can find it in Magento admin panel, System, Tools, Compilation. Just click on Enable and Run Compilation Process after that.
This option compiles all Magento installation files and creates a single include path. It will speed up pages 25-50% according to the official documentation.
However, enabling the compiler may cause some issues such as reporting missing php files which cannot be included. This may force you to disable the compiler. This can be done similarly to enabling it - go to admin panel, System, Tools, Compilation.
2. If the above improvement is not enough you can use a third party extension for performance optimization available at https://www.magentocommerce.com/magento-connect/utilities/server-performance-caching.html
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