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If you constantly need to run large models, increasing RAM size is always a safe bet in my opinion. BTW, Algor 2012 has noticeable performance improvement that may meet you 25% expection for many models.
I agree that additional memory is likely to be the best option.
A faster disk drive may help as well, especially if running MES or any other time-dependent analysis. Similarly, striping disks (additional disk drive with additional disk controller) will also help with these types of analyses.
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