Why Data Warehousing with Snowflake is Gaining Popularity (2024)


Snowflake is a cloud data platform that stores your valuable enterprise data assets in a data warehouse or data lake, making it easier to retrieve for business intelligence (BI) and analytics.


Since the company’s initial public offering (IPO) in September 2020, Snowflake has attracted a great deal of interest from investors and potential customers alike. So what’s going on with Snowflake right now, and why is Snowflake such a popular data warehouse solution?

The Rise of the Snowflake Data Warehouse

When Snowflake went public in September 2020, the company raised $3.9 billion in capital, enough to make it the fifth-largest technology IPO in history—bigger than the IPOs of other tech giants such as Airbnb, Lyft, and Twitter. Even Warren Buffett’s conglomerate Berkshire Hathaway got in on the action, buying hundreds of millions of dollars in Snowflake stock.

This feeding frenzy helped drive Snowflake share prices higher and higher. Initially estimated to go public at a price of $75 to $85 per share, Snowflake then decided to price its IPO at $120 per share. In the days following Snowflake’s IPO, prices (and enthusiasm) soared even higher: the stock finished the week at $240, double what it had initially gone for.

By November 2021, Snowflake’s Market Cap topped $100B and the company is still generating a great deal of interest from both investors and users. According to the marketing intelligence firm Slintel, Snowflake has grabbed a 17.4 percent market share in the category of data warehousing solutions, second behind only Amazon Redshift.

Even more surprising is that Snowflake has achieved this meteoric rise in just a few years—and as an independent company. Major competitors to Snowflake include Redshift, BigQuery, Azure SQL Data Warehouse, and Db2, all of which are backed by major technology firms: Amazon, Google, Microsoft, and IBM, respectively.

Of course, savvy tech industry professionals were well aware of Snowflake before its IPO. In 2019, Forbes placed Snowflake among the top five companies in its “Cloud 100” rankings, which it calls “the best, brightest, most valuable private companies in the cloud.” Some analysts even say that Snowflake single-handedly “revived the data warehouse industry by building (and perfecting) a cloud-based data platform.”

Why Data Warehousing with Snowflake is Gaining Popularity (2024)

FAQs

Why Data Warehousing with Snowflake is Gaining Popularity? ›

Speed up analytics on the most advanced data and AI platform. On Snowflake, data warehousing just works, with automatic performance improvements, optimal total cost of ownership (TCO), and AI and ML easy enough for everyone to use.

Why is the Snowflake data warehouse so popular? ›

companies chose Snowflake's cloud-built data warehouse. Customers reduced query times from hours to seconds; pushed their cloud data warehouse to all business users; accessed all of their structured and semi-structured data; and do so quickly and more affordably than other data analytics platform.

Why is Snowflake so successful? ›

The Snowflake architecture relies on a single elastic performance engine that offers high speed and scalability. Snowflake can also support a high number of concurrent users and workloads, both interactive and batch. This can be attributed to its multi-cluster resource isolation feature.

Why is data warehouse popular? ›

Data warehousing improves the speed and efficiency of accessing different data sets and makes it easier for corporate decision-makers to derive insights that will guide the business and marketing strategies that set them apart from their competitors. Improve their bottom line.

Why is Snowflake better than competitors? ›

Snowflake excels in scalability with its separate compute and storage resources, allowing organizations to scale both independently. It outperforms competitors like Amazon Redshift and Cloudera Data Warehouse in this aspect.

Why do customers choose Snowflake? ›

Snowflake's single platform eliminates data silos and simplifies architectures to help customers across the globe get more value from their data.

Why Snowflake is better than other databases? ›

Snowflake enables data storage, processing, and analytic solutions that are faster, easier to use, and far more flexible than traditional offerings. The Snowflake data platform is not built on any existing database technology or “big data” software platforms such as Hadoop.

How is Snowflake different from other data warehouses? ›

Snowflake: A different data warehouse architecture

Designed with a patented new architecture to handle all aspects of data and analytics, it combines high performance, high concurrency, simplicity, and affordability at levels not possible with other data warehouses.

What is the purpose of a warehouse in Snowflake? ›

A warehouse provides the required resources, such as CPU, memory, and temporary storage, to perform the following operations in a Snowflake session: Executing SQL SELECT statements that require compute resources (e.g. retrieving rows from tables and views).

Why are snowflakes so special? ›

When several ice crystals stick together, they form a snowflake. As snowflakes tumble through the air, swirling and spiraling, they each take a different path to the ground. Each snowflake falls and floats through clouds with different temperatures and moisture levels. This shapes each snowflake differently.

What is Snowflake famous for? ›

Snowflake's founders started from scratch and built a data platform that would harness the immense power of the cloud. But their vision didn't stop there. They engineered Snowflake to power the Data Cloud, where thousands of organizations have seamless access to explore, share, and unlock the true value of their data.

What are some key successes of Snowflake? ›

With its versatile, scalable, and effective software-as-a-service solution, organizations may save time and money on their data analysis. Snowflake offers various services through the platform such as data engineering, data lake, data warehouse, data science, data applications, and data sharing.

What is a major benefit to data warehousing? ›

The advantage of a data warehouse is that it converts data from multiple sources into a consistent framework. This leads to more accurate data influencing solid decisions. And when the data from across the business is standardized, each department can produce consistent results.

When did data warehouses become popular? ›

1988 – Barry Devlin and Paul Murphy publish the article "An architecture for a business and information system" where they introduce the term "business data warehouse". 1990 – Red Brick Systems, founded by Ralph Kimball, introduces Red Brick Warehouse, a database management system specifically for data warehousing.

What is so great about snowflakes? ›

Snowflake enables data storage, processing, and analytic solutions that are faster, easier to use, and far more flexible than traditional offerings. The Snowflake data platform is not built on any existing database technology or “big data” software platforms such as Hadoop.

Why choose Snowflake over AWS? ›

Snowflake is the apparent winner compared to AWS Redshift in terms of maintenance because its separate storage and compute architecture makes it easier to scale up and down. You can change a warehouse's size or increase the number of clusters.

Why Snowflake is better than SQL? ›

Snowflake handles read-heavy analytical queries well, thanks to advanced compression techniques and columnar storage. It also optimizes queries and data storage automatically, minimizing the need for manual fine-tuning. SQL Server needs more manual optimizations than Snowflake.

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