IIS 7.5 provides the following compression options:
Compression of dynamic application responses can affect CPU resources because IIS doesn't cache compressed versions of dynamic output. If compression is enabled for dynamic responses and IIS receives a request for a file that contains dynamic content, the response that IIS sends is compressed every time it is requested. Because dynamic compression consumes significant CPU time and memory resources, it should be used only on servers that have slow network connections and have CPU time to spare. Unlike dynamic response, compressed static responses can be cached without degrading CPU resources.
Static Compression is installed out-of-the-box. To use dynamic compression the user needs to install it first:

4. Add desired role (Web Server > Performance > Dynamic Content Compression)

5. Next, Install, Wait ... Done!
Enable Compression:
