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I have searched the web for the answer of this question but couldn't find a clear answer. Best answer I found was as follows:

kondemand is a kernel thread that belongs to the ondemand governor of cpufreq subsystem, which changes the p-states of the system, based on the utilization statistics. Thus it’s something that helps in power management.

But still there is uncertainty about the meaning in what way kondemand helps power management or is it really a process/thread concerning with power management?

Can someone please explain it?

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The kondemand process helps conserve power by reducing the CPU-Speed if the CPU isn't needed to run at maximum speed.

Reduced Clock Speed == Reduced power requirements.

Personally, I find that very useful on portable devices (smartphones, netbooks) but I'm not sure about that feature when it comes to Servers.

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