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When I, for example, do an image backup of a 500Gb drive that is no where near full, I can get it all on a smaller external drive, because Macrium Reflect compresses all the free space and other redundancies. When you look at the spaced used for the image on the external drive, it barely puts a dent in it. I can't vouch for cloning to a different drive, as I haven't tried that yet.