The document discusses data compression in Hadoop. There are several benefits to compressing data in Hadoop including reduced storage needs, faster data transfers, and less disk I/O. However, compression increases CPU usage. There are different compression algorithms and file formats that can be used including gzip, bzip2, LZO, LZ4, zlib, snappy, Avro, SequenceFiles, RCFiles, ORC, and Parquet. The best options depend on factors like the data, query needs, support in Hadoop distributions, and whether the data schema may evolve. Columnar formats like Parquet provide better query performance but slower write speeds.