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Edge Delivery Services, where would we place images and assets

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While adding images, mp4 (videos), pdfs, and other documents, how would content authors use the document base authoring to upload images like https://ext-images--franklin-assets-selector--hlxsites.hlx.page/external-images-example?view-doc-sou... and are these saved into the dam?

Our AEM customer has a contract with AEMaaCS for 4 years, and its free to use EDS, just wondering where are the images actually placed.

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