This is with reference to:
http://googlecode.blogspot.com/2011/01/go-daddy-makes-web-faster-by-enabling.html
But I still don't know how it works the in background to dynamically optimize pages.
One more thing I could NOT understand why "Cached subsequent requests are slow" ?
PageSpeed mod_pagespeed is a module for Apache server which is just like a plug in, and since Apache is different from IIS, it cannot be installed on IIS servers.
As for what it does, it does multiple things:
So this module is pretty cool. It can really speed up the performance of the sites. One downside however is that it uses much more CPU resources on the servers.
Hope this helps.
According to your graph, left picture does not represent loading times of cached requests. It's the number of requests! And, as it's supposed to be, the number of requests to the server goes down and number of cached requests go down.
However I don't see the loading times change. According to this recent research "What is PageSpeed Module?", loading times can be decreased by up to 90%!
Additionally, their numbers on numbers I get from Your pictures match pretty exact: - around 50% cut in number of requests ; - around 80% cut in payload size.
The idea of how it works is described by the gentleman in the answer above, for more info you can check Google Documentation or the link to Boost Business Friday guys.