One embodiment of the present invention provides a system that systematically monitors and records performance information in a computer system. During operation, the system periodically measures a number of performance parameters in the computer system. The system then stores data representing values for the measured performance parameters in a long-term storage space. Next, the system recurrently compresses data stored in the long-term storage space, thereby allowing additional data representing newly collected performance information to be stored in the long-term storage space.