It depends entirely on how are you planning to send the data as the compression should be done before sending the data to Elasticsearch.
If you are going to use Logstash or Filebeat then there is no issue, both tools support compression with the Elasticsearch output, it is not enabled per default but is pretty easy to configure.
If you are going to use other tool or a custom application, then you will need to check how to send a compressed http request to Elasticsearch on each case.
Yes, if you set this option to true, logstash will send compressed data to Elasticsearch and Elasticsearch will decompress the data when it received the requests, no other change is needed.
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