Jazz is a wide and diverse range of music, and a person who likes one style of jazz music may hate another.
Remember Jazz started not long after the 1900s and has changed and evolved right up to the present day.
Louis Armstrong made some great Jazz in the 1920s that changed the face of Jazz (Hot 5 and Hot 7 recordings) and he may like that, but your friend may like big band jazz from the 1930s or 1940s, or modern Jazz from the 1950s and 1960s. Or current Jazz.
Unless you know his taste in Jazz I would not buy him a CD as it may sit unplayed in his collection.
The term 'jazz' covers such a wide variety of music that it's almost impossible to make a recommendation, unless you specify what kind of jazz your friend likes. I am not a fan of jazz in general, so my suggestions might seem more 'impartial' than those of a die-hard fan of any particular type of jazz.
"Time Out" is certainly a great album, along with "Kind of Blue" and "Sketches of Spain" by Miles Davis. For something more recent, how about something by Jacques Loussier or Spyro Gyra? When I bought my computer it had some music by The Deardorf Peterson Group already installed ... I'd never heard of them before, but the music was quite good.