Embodiments relate to policy-based, multi-scheme data reduction for a computer memory. An aspect includes receiving a plurality of policy rules by a policy engine of the computer memory, wherein a first policy rule specifies applying a first data reduction scheme to data in the computer memory based on the data matching first characteristics, wherein a second policy rule specifies applying a second data reduction scheme to data in the computer memory based on the data matching second characteristics, wherein the first data reduction scheme is different from the second data reduction scheme. Another aspect includes determining, by the policy engine, that first data in the computer memory matches the first characteristics, and that second data in the computer memory matches the second characteristics. Yet another aspect includes applying the first data reduction scheme to the first data, and applying the second data reduction scheme to the second data.
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