does the incremental rsync algorithm save on storage?

[Noah Leaman]

>From what I understand, the incremental rsync algorithm saves on network bandwidth, but does rsync then just merge that delta data to end up with the new version and full sized file on the destination filesystem? 

I have these Microsoft Entourage databases files that modified often and can be a few gigs in size...  I want to back them up with rsync, but if the whole file is backed-up each time it takes a lot of space up (...multiplied by many users). I want to just store the initial file then only the deltas for each backup after that. 

So my concern is not so much for bandwidth conservation, but storage conservation.

-- 
Noah