Does Hadoop compress files?

[u235sentinel]

I'm starting to evaluate Hadoop.  We are currently running Sensage and 
store a lot of log files in our current environment.  I've been looking 
at the Hadoop forums and googling (of course) but haven't learned if 
Hadoop HDFS does any compression to files we store.

On the average we're storing about 600 gigs a week in log files (more or 
less).  Generally we need to store about 1 1/2 - 2 years of logs.  With 
Sensage compression we can store about 200+ Tb of logs in our current 
environment.

As I said, we're starting to evaluate if Hadoop would be a good 
replacement to our Sensage environment (or at least augment it).

Thanks a bunch!!