I have a small web application in (created in VS2010) that connects to
a sql server and provides the user with information like first name,
last name and so on for tracking assets, some queries, lookups and so
on. There is no information inputed it is tracking only so the user
does not have to enter or edit any data.

The data updates every 24hours, so it is not like there is a need for
real time data.

Is there any advantage or disadvantage to converting the data on the
server to XML files?