The function of Caffeine is pretty simple -- when engaged, it keeps your computer awake, screen on, and screen saver off. Basically, it will override your power management and screen saver settings, but only when it is active.
This is a great app for me because I keep my power management settings and screen saver settings pretty ''tight." I have 15" macbook pro so battery life is at a premium. Keeping the screen dark or computer sleeping when not in use is critical for the unit to have a charge when I need it. I also have the screen saver active with a password because I work in various places every week. I don't want to worry about who will see or mess with my data when I'm not around.
Caffeine puts a coffee cup icon in the menu bar of your mac. Clicking the cup toggles the activity of the app on or off. This is great for presentations or when I'm trying to discuss what is on my screen with someone.
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