@milan gzip only does individual files. Tar does multiple files but doesn't do compression. That's how we invented the gzipped tarball. (tar has a gzip flag)
tar zcf name.tar.gz directory/
z: gzip-compress the output
c: create archive (versus x:extract, t:test)
f: write to the named file instead of stdout
@milan I should clarify, when I say "tar doesn't do compression" I'm referring to the tar format; the tar tool DOES do compression, but only by gzipping the actual tar file. .tar.gz is a very common format for distributing source code in Linux.