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Hi Bsacco,
I'm wondering the same thing. I've been doing some research on this question, but I've not found an answer to this.
One of the big factors may be whether you use a shared host or a dedicated server. On a shared host, the efficiency of your site is at least partially dependent on how efficiently the host manages their server resources (and their server configurations). If you can afford it, you are better off on a dedicated server, since you are not competing with others for resources.
Unfortunately, I cannot afford a dedicated server at this time, which is why I'm trying to find out how XOOPS performs in high traffic on shared hosting (and which shared hosting plans work the best).
Another factor is how graphics intensive your site is. The more graphics/downloads/uploads, the more load on the server being used. This may not be a major factor on a high capacity dedicated server, but may be a significant factor on a shared host.
As for how XOOPS can handle high traffic in an optimal operating environment, I would imagine that it works fine (unless there are bugs in the code that cause problems during high traffic). From what I read, PHP and MySQL can handle a lot (and this is what XOOPS is based upon).
Anyway, I'm pretty much rambling here, since I really don't know how XOOPS will perform at various traffic levels, and on various types of hosting/servers. I wish there were some documented guidelines available on this.
I'm planning a huge move for one of my old web sites, from static to CMS with Xoops. I would hate for the site to not work right or not work at all under heavy traffic. This is why I'm trying to find some information on how XOOPS performs under various conditions, before I completely commit to making this big move to Xoops.
Dave