GD - What is it?
gd is a graphics library. It allows your code to quickly draw images complete with lines, arcs, text, multiple colors, cut and paste from other images, and flood fills, and write out the result as a PNG or JPEG file. This is particularly useful in World Wide Web applications, where PNG and JPEG are two of the formats accepted for inline images by most browsers.
gd is not a paint program. If you are looking for a paint program, you are looking in the wrong place. If you are not a programmer, you are looking in the wrong place, unless you are installing a required library in order to run an application.
gd does not provide for every possible desirable graphics operation. It is not necessary or desirable for gd to become a kitchen-sink graphics package, but version 2.0 does include most frequently requested features, including both truecolor and palette images, resampling (smooth resizing of truecolor images) and so forth.
GD is compiled with PHP. No Gif support. We recommend that you use PNG instead.
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Image Magick - What is it?
ImageMagickTM is a robust collection of tools and libraries offered under a usage license to read, write, and manipulate an image in many image formats (over 87 major formats) including popular formats like TIFF, JPEG, PNG, PDF, PhotoCD, and GIF. With ImageMagick you can create images dynamically, making it suitable for Web applications. You can also resize, rotate, sharpen, color reduce, or add special effects to an image and save your completed work in the same or differing image format. Image processing operations are available from the command line, as well as through C, C++, PERL, or Java programming interfaces.
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