Yahoo! is one of the most-visited web sites in the world. It runs one of the largest private cloud infrastructures, one that operates on petabytes of data every day. Being able to store and manage that data well is essential to the efficient functioning of Yahoo!`s Hadoop clusters. A key component that enables this efficient operation is data compression. With regard to compression algorithms, there is an underlying tension between compression ratio and compression performance. Consequently, Hadoop provides support for several compression algorithms, including gzip, bzip2, Snappy, LZ4 and others. This plethora of options can make it difficult for users to select appropriate codecs for their MapReduce jobs. This paper attempts to provide guidance in that regard. Performance results with Gridmix and with several corpuses of data are presented. The paper also describes enhancements we have made to the bzip2 codec that improve its performance. This will be of particular interest to the increasing number of users operating on “Big Data” who require the best possible ratios. The impact of using the Intel IPP libraries is also investigated; these have the potential to improve performance significantly. Finally, a few proposals for future enhancements to Hadoop in this area are outlined.