How can we optimally trade extra computing power to reduce the communication load in distributed computing? We answer this question by characterizing a fundamental tradeoff between computation and communication in distributed computing, i.e., the two are inversely proportional to each other. More specifically, a general distributed computing framework, motivated by commonly used structures like MapReduce, is considered, where the overall computation is decomposed into computing a set of "Map" and "Reduce" functions distributedly across multiple computing nodes. A coded scheme, named "Coded Distributed Computing" (CDC), is proposed to demonstrate that increasing the computation load of the Map functions by a factor of $r$ (i.e., evaluating each function at $r$ carefully chosen nodes) can create novel coding opportunities that reduce the communication load by the same factor. An information-theoretic lower bound on the communication load is also provided, which matches the communication load achieved by the CDC scheme. As a result, the optimal computation-communication tradeoff in distributed computing is exactly characterized. Finally, the coding techniques of CDC is applied to the Hadoop TeraSort benchmark to develop a novel CodedTeraSort algorithm, which is empirically demonstrated to speed up the overall job execution by $1.97\times$ - $3.39\times$, for typical settings of interest.