I'm the webmaster for a small social network and have noticed that images uploaded by users are taking a big portion of the capacity available. These are mostly JPEGs.
What solutions could I apply to reduce storage needs? Is there a way to reduce the size of images without affecting quality too much? Is there a service out there that could be used to store static files at a cheaper price (< 1GB/0.04 eurocents)?
Edit: Updated the question.