VDO is a Linux device mapper driver that provides data deduplication and compression. It has two kernel modules that work together to provide data efficiency at the block layer and maintain the deduplication index. VDO can increase storage efficiency and reduce costs for applications like Gluster file storage. It works by creating a VDO logical volume on a block device and then creating a file system on the logical volume. Real-world testing of VDO on container images showed a data reduction of over 80%.