The described technology is generally directed towards reducing the amount of data stored in a sequence of data blocks by combining deduplication and compression. According to an embodiment, a system can comprise a memory that can store computer executable components, and a processor that can execute the components stored in the memory. The components can comprise a data block identifier that can identify, for a sequence of data blocks, a first data block that corresponds to a first data, resulting in a first identified data block, and a deduplication component that can identify a second data block that corresponds to the first data, resulting in a second identified data block, wherein the deduplication component can replace the second identified data block with a key value corresponding to the first identified data block. Further, a compression component can compress the first identified data block, resulting in a compressed data block.