Microsoft XML Core Services (MSXML) 5.0 for Microsoft Office - XML Developer's Guide

Advantages of the XML Format

In some ways, XML is just another data format. However, XML has several advantages over other formats when storing information.

XML isn't appropriate for every situation, however. XML documents tend to be more verbose than the binary formats they replace. They take up more network bandwidth and storage space, or require more processor time for compression. XML parsing can be slower than parsing highly optimized binary formats and can require more memory. However, careful application design can avoid some of these problems.