Snapshot and re-creating a server from it

Say, I created a droplet and installed plenty of software to it. When I take a shapshot of it and delete a droplet, the next time I want to re-create the same kind of server with the same environment and software installed, will snapshot help me do that and withing a short period of time? Say, it took me hours to setup and install all that, will it take me about 10 seconds to re-create a server from scratch with the snapshot?

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That’s exactly how they work. A snapshot is a copy of your droplet’s disk. The only difference between your original droplet and the droplet you create from it’s snapshot should be it’s assigned IP address.