Optimize windows for programs or background services?

This is really a setting for a "quantum" a.k.a the amount of time a thread is permitted to run before it is pre-empted (not a problem for fibers).

If you set it to programs/ applications it is a small value like 2 clock intervals.

If you set it to background services, it is a large value like 12 clock intervals.

The value for background services is larger and meant for server OS because throughput and performance are more important. Shorter quantums would mean more context switching and worse performance.

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