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Databricks vs Snowflake: Which one is better in 2025?

Written by
Greg Hinc

A few years ago, choosing a data platform was about storage limits and running reports. In 2025, the game has changed. Data speed is now business speed, and the platform running your analytics and AI determines how fast you can innovate, control Snowflake costs, and outpace competitors. Databricks and Snowflake are the two biggest names in this space, each offering a different path to turning data into a competitive edge. The real challenge is deciding which one fits your strategy better and how it fits into a modern implementation.

Picking between Databricks and Snowflake is less about comparing features and more about deciding how your business will compete. This guide shows you which platform can give you the advantage and where expert Snowflake consulting can help you in your data projects.

What is Databricks?

Created by the team behind Apache Spark, Databricks unifies data engineering, data science, and machine learning in a single “lakehouse” platform. It handles structured and unstructured data at scale, excelling in complex pipelines, streaming analytics, and AI/ML workloads. By 2025, new features like Agent Bricks for domain-specific AI agents, Lakebase for AI-native applications, and expanded Unity Catalog governance have turned it into a full data intelligence platform for both technical and business users.

What is Snowflake?

Snowflake redefined cloud data warehousing with its separate compute and storage architecture, making it easy to scale and manage. Originally built for SQL analytics, it has evolved into an AI Data Cloud supporting BI and advanced AI applications. In 2025, enhancements like Cortex AISQL, the Arctic LLM, document AI, and improved Python integration extend its reach to data scientists, while keeping its automation and strong data governance.

Databricks vs Snowflake: similarities

Both platforms have matured significantly by 2025, converging on several key capabilities that make them viable options for modern data architectures. Both offer:

  • Cloud-native architecture with automatic scaling and multi-cloud deployment options
  • Enterprise-grade security including encryption, compliance certifications, and granular access controls
  • Data sharing capabilities for secure collaboration across teams and organizations
  • Support for both structured and unstructured data with varying degrees of optimization
  • Integration ecosystems connecting to popular BI tools, data orchestration platforms, and cloud services
  • Pay-as-you-consume pricing models with cost optimization features
  • Streaming data ingestion for real-time analytics and decision-making
  • Machine learning capabilities though with different approaches and levels of sophistication

Databricks vs Snowflake: differences

While these platforms share similarities, their design and intended uses provide each with advantages in specific scenarios.

Performance

Snowflake is built for fast, predictable SQL at high concurrency. Multi-cluster warehouses and automatic optimization keep dashboards responsive. In June 2025, Snowflake introduced Adaptive Compute and Gen2 warehouses to further boost price-performance for interactive analytics.

Databricks is strongest on heavy transformations, ML, and streaming; Photon closes much of the SQL gap but still benefits from tuning.

Aspect Snowflake Databricks
Typical workloads Interactive SQL, BI, dashboards Complex ETL, ML, real-time streaming
Notable features Multi-cluster warehouses, automatic optimization Photon engine, Structured Streaming
Trade-offs Less control over low-level tuning More tuning to hit top SQL speed

Winner: Snowflake for interactive SQL/BI and concurrent users; Databricks for heavy data processing, ML, and low-latency streaming.

Scalability

Snowflake scales with virtual warehouses and multi-cluster warehouses that add or remove clusters automatically, suspend when idle, and resume on demand, which makes high-concurrency BI straightforward with little operational overhead. It is simple to run for many concurrent users and to hand over to a dedicated platform team as a service when internal capacity is limited.

Databricks scales massive distributed jobs and offers autoscaling and serverless options across jobs, SQL, and pipelines.

“Snowflake had great performance consistency and easier scaling… Databricks gave us the best bang for buck on large-scale transformations and streaming.”
Aspect Snowflake Databricks
Concurrency Scales out automatically for many users Requires plan per workload pattern
Long jobs Pays for bursts, easy to pause Efficient for sustained large pipelines
Ops effort Low Higher, with more control

Winner: Snowflake for easy, high-concurrency analytics; Databricks for large-scale data processing and ML.

Ease of Use

Snowflake is SQL-first with a clean web UI, so analysts can start fast, and most tuning is automatic.

Databricks is notebook- and code-centric, great for engineers and data scientists, but it asks more from the team. Across the data community, the pattern is consistent:

“Snowflake seems so much easier to manage … the fastest way to deliver stakeholder value,” while Databricks earns favour with teams that have deep technical know-how.
Aspect Snowflake Databricks
Onboarding Hours for analysts Days to weeks depending on setup
Primary users BI and data analysts Data engineers and data scientists
Admin workload Light Moderate to heavy

Winner: Snowflake for business users and quick deployment; Databricks for technical teams requiring flexibility

Security

Snowflake ships enterprise controls out of the box, including RBAC, dynamic masking, row access, encryption, and detailed usage history. In 2025, updates added Trust Centre email alerts for policy violations, and Access History plus built-in lineage views support auditing. These map closely to the control models used in Snowflake AI & data governance.

Databricks centralises security and lineage in Unity Catalog with fine-grained policies and customer-managed keys, now including attribute-based access control (ABAC) policies.

Aspect Snowflake Databricks
Defaults Strong, turnkey governance Strong, more setup
Policy model RBAC, masking, row policies Unity Catalog, fine-grained and ABAC options
Keys and encryption Managed, always-on Managed and customer-managed keys

Winner: Snowflake for turnkey, compliance-ready governance; Databricks for flexible, policy-rich control across data and AI when you have the engineering depth.

Integration

Snowflake connects cleanly to the BI stack and runs data and native apps inside the platform. Its Marketplace and Native App Framework let vendors ship apps that run inside Snowflake, and 2025 updates expanded in-market apps and data products. These patterns are common in enterprise Snowflake implementations where BI is the primary interface.

Databricks, on the other hand, leans on open formats and APIs, integrating broadly with Spark tools, ML frameworks, and engines that read Delta or Iceberg (and even Snowflake for reads).

Aspect Snowflake Databricks
BI tools Native connectors for Tableau, Power BI, Looker Works, but BI is not the core
Data apps Marketplace and Native Apps Open APIs, broad OSS ecosystem
Open formats Growing Iceberg support Delta Lake and Iceberg first-class

Winner: Snowflake for BI and in-platform apps; Databricks for ML/AI ecosystem depth and open, cross-engine interoperability.

AI

Snowflake integrates AI directly into the platform, allowing teams to call large language models (LLMs) directly from SQL through Cortex AISQL. It also offers its own Arctic LLM family and, starting in 2025, supports running Snowflake ML models within Native Apps.

Meanwhile, Databricks focuses on end-to-end AI application development. Its Mosaic AI Agent Framework enables retrieval-augmented generation (RAG) and agent workflows, and it recently launched DBRX, an open LLM designed for enterprise customisation.

Aspect Snowflake Databricks
Primary approach AI inside analytics and SQL Full AI app development and MLOps
Core tools Cortex AISQL, Document AI, Arctic LLMs, ML in Native Apps Mosaic AI Agent Framework, Vector Search, Model Serving, DBRX
Governance & ops Built into the Data Cloud, usage metered in-platform Integrated with Unity Catalog and platform security
Best fit AI-augmented BI, governed NLQ, document extraction Custom models, agents, large-scale RAG and real-time AI

Winner: Snowflake for AI in analytics with governance and low MLOps overhead. Databricks for custom AI apps, agents, and RAG at scale.

Cost

Snowflake charges per-second compute with auto-suspend and clear usage views, which makes BI spend predictable when set up well. Cost visibility is built in through Snowsight dashboards, usage views, resource monitors, and new cost-anomaly detection, and Cortex AI features are metered by tokens with documented credit rates and guardrails like the 10% cloud-services threshold. Many teams add a layer of Snowflake FinOps and the Snowflake Savings Calculator to keep spend under tight control.

Databricks uses DBUs that vary by workload and tier; it can be cheaper for large, long-running pipelines if you actively tune and monitor. The company is phasing out the Standard tier on AWS and GCP with Premium becoming the base on October 1, 2025, which makes governance features standard but still requires active monitoring and optimisation for steady costs.

As one user said:

“DBU pricing is confusing; you need active monitoring to understand what work maps to which cost.”
Aspect Snowflake Databricks
Billing model Per-second compute, separate storage DBUs by workload and tier
Cost control Auto-suspend, usage views, resource monitors Needs active optimization and tracking
Where it saves Short, spiky BI workloads Sustained ETL and ML at scale

Winner: Snowflake for clearer, more predictable analytics spend and native cost controls; Databricks for cost efficiency on large, long-running data engineering and ML when tuned well.

So, which one is better in 2025?

Use case Snowflake Databricks
Enterprise BI & reporting ✅ Fast SQL, concurrency, near-zero ops ✔️ Works, but not its sweet spot
Self-service analytics for business users ✅ Simple UI, governed access, AISQL ✔️ Notebooks require more expertise
Data sharing & collaboration ✅ Native Data Marketplace and sharing ✔️ Delta Sharing available
Governed analytics at scale ✅ Strong RBAC, masking, turnkey governance ✔️ Unity Catalog strong, more setup
Highly regulated environments ✅ Compliance-first, tight governance ✔️ Capable with more configuration
Cost predictability for BI ✅ Per-second warehouse billing, easy to model ✔️ Can be efficient with tuning
Custom ML / deep learning ✔️ Possible via Snowpark/Python, Cortex ✅ Native ML/AI stack with Spark/MLflow
AI agents and GenAI apps ✔️ AISQL, Arctic, Document AI streamline AI-in-analytics ✅ Mosaic AI Agent Framework, Vector Search, eval tooling
Large-scale data engineering (ETL/ELT) ✔️ Good for SQL ELT ✅ Spark/Delta excel at heavy pipelines
Streaming & real-time pipelines ✔️ Integrates via connectors ✅ Built-in streaming with Spark/Delta Live Tables
Unstructured data processing ✔️ Improving with Cortex & Document AI ✅ Strong with lakehouse and AI tooling
Open table formats (Iceberg/Delta) ✔️ Interop improving; strong for SQL workloads ✅ Native Delta; expanding Iceberg support
Lake modernization ✅ If goal is SQL-first analytics with governance ✅ If goal is open formats + ML/AI at scale
Hybrid architecture (both platforms) ✅ Great as the governed analytics layer ✅ Great as the engineering/AI layer

The decision between Databricks vs Snowflake ultimately depends on your organization's primary use cases, team composition, and strategic priorities.

Choose Snowflake if:

  • Your primary focus is business intelligence, reporting, and governed analytics.
  • You have mixed technical teams, including business analysts who need self-service capabilities on a managed Snowflake platform.
  • You prioritise ease of use, quick deployment, and minimal maintenance overhead.
  • Data governance, compliance, and security are top priorities with limited dedicated resources, making AI & data governance a core requirement.
  • You need predictable, transparent pricing for analytical workloads with clear FinOps guardrails.
  • Your AI initiatives involve augmenting existing analytics rather than building custom models from scratch.

Consider a hybrid approach if:

  • You have both heavy ML/data science workloads AND extensive BI requirements
  • Different teams have varying technical capabilities and use case requirements
  • You're transitioning between platforms and need time to migrate workloads, often via staged migrations & integrations.
  • Specific regulatory or data residency requirements dictate platform choice by region

Need expert guidance for your data platform decision?

Your data platform is not an IT purchase. It is a strategy decision. Our Snowflake consultants help data leaders design, build, and run modern platforms with a core focus on Snowflake and the surrounding stack. We handle migrations, performance tuning, FinOps, AI readiness and governance so your team spends smarter and stays compliant. We use the same delivery patterns proven in our success stories.

Let’s align your Snowflake platform to your strategy.

Talk to our Snowflake consultants

Databricks vs Snowflake FAQs

FAQs

Absolutely. A common architecture uses Databricks for ETL and AI workloads, then loads into Snowflake for SQL analytics and business-level insights.

Neither platform is always cheaper; Databricks can be more cost-efficient for long-running, well-tuned pipelines, while Snowflake often wins on short, spiky BI workloads where auto-suspend and clear warehouse sizing keep spend predictable. Real costs come from platform spend + engineering time.

The FinOps Savings Calculator for Snowflake and FinOps services break your bill into compute, storage, and services, then surface concrete optimization opportunities before you consider a re-platform.

Start from your use cases, team, and risk profile. If most value comes from governed reporting, self-service analytics, and finance-grade dashboards, Snowflake as the primary platform (sometimes plus Databricks for specialist workloads) is usually the safer bet.

If your roadmap is dominated by advanced ML, streaming, and data-science-heavy products, Databricks often plays a bigger role. Our consulting services are designed exactly for this decision: we audit your current stack and model costs. When you’re ready, you can book a consultation to walk through options with a senior Snowflake architect consultant.

Migrating between Databricks and Snowflake is technically feasible, but the real challenge is cost and disruption. Teams usually switch from Databricks to Snowflake for simpler SQL analytics, stronger governance, and easier day-to-day operations.

Our Snowflake consultants help companies with platform migration by first modelling the business case through Snowflake consulting & advisory , then, if a move to Snowflake is justified, running a structured, low-risk migration using our migrations & integrations playbooks and proven timelines from real Snowflake case studies .

Yes. Snowflake supports unstructured data and handles semi-structured data (JSON, Avro, Parquet) through the VARIANT type. It now supports unstructured data (documents, images, logs, media files) via external volumes, directory tables, and features like Document AI.

For AI workloads in 2025, the answer depends on your specific implementation approach. Snowflake is better for adding AI into analytics. With Cortex AISQL, the Arctic LLM, Document AI, and stronger Python support, it lets teams use AI for insights, governed deployments, and SQL-based applications without deep ML expertise.

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Best practices for protecting your data: Snowflake role hierarchy

One stolen password can bring down an entire enterprise. As businesses move more of their data to the cloud and centralize it on platforms like Snowflake, a critical question emerges: who should have access, and how do you manage it at scale without slowing the business or weakening security?

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One stolen password can bring down an entire enterprise. The 2024 Snowflake breaches revealed how fragile weak access controls are, with 165 organizations and millions of users affected. The breaches were not the result of advanced attacks. They happened because stolen passwords went unchecked, and multi-factor authentication was missing. As businesses move more of their data to the cloud and centralize it on platforms like Snowflake, a critical question emerges: who should have access, and how do you manage it at scale without slowing the business or weakening security?

In this article, we’ll break down the Snowflake Role Hierarchy, explain why it matters, and share best practices for structuring roles that support security, compliance, and day-to-day operations.

What is Snowflake’s role hierarchy?

Snowflake’s role hierarchy is a structured framework that defines how permissions and access controls are organized within the platform. In Snowflake, access to data and operations is governed entirely by roles. Using the Role-Based Access Control (RBAC) model, you grant privileges to roles, and then assign users to those roles, simplifying administration, ensuring consistency, and making audit access easier. RBAC is generally recommended for production environments and enterprise-level governance.

The hierarchy operates on a parent-child relationship model where higher-level roles inherit privileges from subordinate roles, creating a tree-like structure. This structure provides granularity, clarity, and reusability, but it requires thoughtful planning to avoid sprawl or over-permissioned users.

Core components of Snowflake RBAC

  • Roles: The fundamental building blocks that encapsulate specific privileges
  • Privileges: Defined levels of access to securable objects (databases, schemas, tables)
  • Users: Identities that can be assigned roles to access resources
  • Securable Objects: Entities like databases, tables, views, and warehouses that require access control
  • Role Inheritance: The mechanism allowing roles to inherit privileges from other roles

Understanding Snowflake's system-defined roles

Understanding the default role structure is crucial for building secure hierarchies:

ACCOUNTADMIN

SYSADMIN

  • Full control over database objects and users
  • Recommended parent for all custom roles
  • Manages warehouses, databases, and schemas

SECURITYADMIN

  • Manages user and role grants
  • Controls role assignment and privilege distribution
  • Essential for maintaining RBAC governance

Custom roles

  • Created for specific teams or functions within an organization (e.g ANALYST_READ_ONLY, ETL_WRITER).

Best practices for designing a secure Snowflake role hierarchy

A well-structured role hierarchy minimizes risk, supports compliance, and makes onboarding/offboarding easier. Here’s how one should do it right:

1. Follow the Principle of Least Privilege

Grant only the minimum required permissions for each role to perform its function. Avoid blanket grants like GRANT ALL ON DATABASE.

Do this:

  • Specific, targeted grants
  • Avoid cascading access down the role tree unless absolutely needed
  • Regularly audit roles to ensure they align with actual usage
GRANT SELECT ON TABLE SALES_DB.REPORTING.MONTHLY_REVENUE TO ROLE ANALYST_READ;
GRANT USAGE ON SCHEMA SALES_DB.REPORTING TO ROLE ANALYST_READ;
GRANT USAGE ON DATABASE SALES_DB TO ROLE ANALYST_READ;

Not this:

  • Overly broad permissions
GRANT ALL ON DATABASE SALES_DB TO ROLE ANALYST_READ;

Why does it matter?

Least privilege prevents accidental (or malicious) misuse of sensitive data. It also supports data governance and compliance with various regulations like GDPR or HIPAA.

2. Use a layered role design

Design your roles using a layered and modular approach, often structured like this:

  • Functional Roles (what the user does):
CREATE ROLE ANALYST_READ;
CREATE ROLE ETL_WRITE;
CREATE ROLE DATA_SCIENTIST_ALL;
  • Environment Roles (where the user operates)
CREATE ROLE DEV_READ_WRITE;
CREATE ROLE PROD_READ_ONLY;

Composite or Team Roles (Group users by department or team, assigning multiple functional/environment roles under one umbrella)

CREATE ROLE MARKETING_TEAM_ROLE → includes PROD_READ_ONLY + ANALYST_READ

3. Avoid granting privileges directly to users

Always assign privileges to roles and not users. Then, assign users to those roles.

Why it matters?

This keeps access transparent and auditable. If a user leaves or changes teams, simply revoke or change the role. There’s no need to hunt down granular permissions.

4. Establish consistent naming conventions

Enforce naming conventions as consistent role and object naming makes automation and governance far easier to scale.

Recommended Naming Pattern:

  • Access Roles: {ENV}_{DATABASE}_{ACCESS_LEVEL} (e.g., PROD_SALES_READ)
  • Functional Roles: {FUNCTION}_{TEAM} (e.g., DATA_ANALYST, ETL_ENGINEER)
  • Service Roles: {SERVICE}_{PURPOSE}_ROLE (e.g., FIVETRAN_LOADER_ROLE)

5. Use separate roles for Administration vs. Operations

Split roles that manage infrastructure (e.g., warehouses, roles, users) from roles that access data.

  • Admins: SYSADMIN, SECURITYADMIN
  • Data teams: DATA_ENGINEER_ROLE, ANALYST_ROLE, etc.

Why it matters? This separation of duties limits the potential impact of security incidents and supports audit compliance. Administrators should not have access to sensitive data unless it's absolutely necessary for their role.

6. Secure the top-level roles

Roles like ACCOUNTADMIN and SECURITYADMIN should be assigned to the fewest people possible, protected with MFA, and monitored for any usage.

Implementation Checklist:

  • Limit ACCOUNTADMIN to 2-3 emergency users maximum
  • Enable MFA for all administrative accounts
  • Set up monitoring and alerting for admin role usage
  • Regular access reviews and privilege audits
  • Document and justify all administrative access

Monitoring, auditing & compliance: keeping your Snowflake hierarchy healthy

Even the best-designed role trees can get messy over time. Here’s how to maintain security:

1. Regular access reviews

Implement quarterly access reviews to maintain security hygiene:

  • Role Effectiveness Analysis: Identify unused or over-privileged roles
  • User Access Validation: Verify users have appropriate role assignments
  • Privilege Scope Review: Ensure roles maintain least privilege principles
  • Compliance Mapping: Document role mappings to business functions

2. Logging and monitoring

Enable Access History and Login History in Snowflake to track activity and implement automation tools for role assignments during employee transitions.

3. Onboarding/offboarding automation

Implement automation tools or scripts to efficiently manage role assignments during employee transitions.

4. Object Tagging for enhanced security

Use object tagging to classify sensitive data and control access accordingly.

Measuring RBAC Success: Key Performance Indicators

1. Security Metrics

  • Access Review Coverage: % of roles reviewed quarterly
  • Privilege Violations: Number of excessive privilege grants identified
  • Failed Authentication Attempts: Monitor for unauthorized access patterns
  • Role Utilization Rate: % of active roles vs. total created roles

2. Operational Metrics

  • User Onboarding Time: Average time to provision new user access
  • Role Management Efficiency: Time to modify/update role permissions
  • Audit Response Time: Speed of access review and remediation
  • Automation Coverage: % of role operations automated vs. manual

3. Compliance Metrics

  • SOC 2 Readiness: Role hierarchy documentation completeness
  • GDPR/Data Privacy: Data access control effectiveness
  • Industry Compliance: Sector-specific requirement adherence
  • Change Management: Role modification approval and documentation

Future-Proofing Your RBAC Strategy

The way you manage access today will define how secure and scalable your Snowflake environment is tomorrow. The strength of Snowflake’s RBAC model lies in its flexibility, but that power comes with responsibility. As AI features mature, as multi-cloud deployments become the norm, and as regulators tighten expectations around data privacy, static role hierarchies quickly fall behind. A poorly structured role hierarchy can lead to data leaks, audit failures, higher operational costs, and stalled innovation.

At Snowstack, we specialize in building RBAC strategies that are not only secure today but ready for what’s next. Our team of Snowflake-first engineers has designed role models that scale across continents, safeguard sensitive data for regulated industries, and enable AI without exposing critical assets. We continuously monitor Snowflake’s roadmap and fold new security capabilities into your environment before they become business risks.

Don’t wait for the next breach to expose the cracks in your access controls. Let’s design an RBAC strategy that keeps you secure, compliant, and future-ready.

👉 Book a free RBAC assessment

FAQs

RBAC provides scalability and centralized control by granting privileges to roles, which are then assigned to users. UBAC allows privileges to be assigned directly to individual users and is intended for collaborative scenarios like building Streamlit applications.

Follow the "Role of Three" principle: create Access Roles (data-centric), Functional Roles (business-centric), and Service Roles (system-centric). This approach avoids role explosion while maintaining necessary granularity.

Always assign privileges to roles and not users. Then, assign users to those roles. This keeps access transparent and auditable.

Design with hierarchy in mind – role ownership and grant structure should align with your intended control model. Map business functions to role layers and ensure clear inheritance paths.

Create emergency “break-glass” roles with elevated privileges that are heavily monitored and logged, require additional approval workflows, automatically expire after a set period of time, and immediately notify the security team when activated.

Conduct comprehensive access reviews every quarter, perform monthly spot checks on high-privilege administrative roles, service accounts, recently modified permissions, and roles tied to employees who have left the company.

Yes, automation is critical for scaling. Create stored procedures for role provisioning, use CI/CD pipelines for role deployment, and integrate with identity providers for user lifecycle management.

Classify and tag sensitive data, enforce row-level security and column masking, maintain detailed audit logs with supporting access documentation, run regular compliance assessments and gap analyses, and document the business justification for every access role granted.

Blog
5 min read

How Snowflake is different from other databases: 3 architecture advantages for modern data teams

Some companies still run databases like it’s 1999. Others have adopted cloud-native architectures that cut costs in half and double performance. Guess who’s winning?

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Some companies still run databases like it’s 1999. Others have adopted cloud-native architectures that cut costs in half and double performance. Guess who’s winning?

Traditional databases force a trade-off between performance and budget. Collaboration still means passing around CSVs. Forward-thinking organizations have shifted to Snowflake’s cloud-native architecture, which scales instantly, operates securely, and keeps costs under control. But what truly sets Snowflake apart from traditional databases or even other cloud data platforms?

In this blog, we’ll break down three key architectural advantages that make Snowflake a game-changer for businesses that want to migrate to the cloud.

But first, what is a cloud-native database?

A cloud-native database is designed from the ground up for the cloud. Unlike traditional databases that were adapted from on-premise systems, cloud-native platforms are purpose-built to take advantage of the cloud’s strengths: scalability, flexibility, and resilience.

They scale horizontally by adding capacity in parallel instead of relying on bigger machines. They automatically adjust resources up or down based on demand, so you only pay for what you use. They also come with built-in high availability through data replication and automated recovery.

In short, a cloud-native database removes the rigid trade-offs of legacy systems and gives modern businesses the performance, efficiency, and reliability they need to stay competitive.

Snowflake's architecture: 3 strategic advantages

Snowflake isn’t just faster or cheaper. It’s built differently. The three architectural choices below explain why modern data teams trust Snowflake to scale, collaborate, and deliver insights in ways legacy systems never could.

1. Separation of storage and compute: elasticity without trade-offs

Most databases tie storage and compute together. Need more power to run quarterly reports? You’ll also pay for storage you don’t use. Want to keep historical data at a lower cost? You’re still paying for compute you don’t actually need.

Snowflake's Solution: Snowflake's architecture fundamentally decouples storage and compute layers, creating unprecedented flexibility for modern data teams.

  • You can scale compute resources up or down independently of your data storage.
  • Multiple workloads (e.g., data ingestion, analytics queries, and reporting) can run simultaneously on isolated compute clusters without performance conflicts.
  • You can assign different warehouses (compute clusters) to different teams or departments without worrying about concurrency issues or resource contention.

Business impact: Imagine a BI team that runs heavy dashboards while a data science team trains models on the same data. The beauty behind this separation is that both can operate without stepping on each other’s toes. This translates to faster time-to-insight, cost control, and happy teams who aren’t waiting for resources to free up.

2. Multi-cluster shared data architecture: built for collaboration and scale

Traditional databases become performance challenge as more users access the system. Query response times degrade, teams queue for resources, and data silos emerge as different departments seek workarounds.

Snowflake's Solution: Snowflake’s multi-cluster shared data model allows any number of users and tools to access the same single source of truth without performance degradation. The platform automatically manages concurrency through intelligent multi-cluster compute scaling.

What this means for data teams:

  • Unlimited concurrency: Teams don’t have to wait in line to access the warehouse. Snowflake automatically adds compute clusters as needed and scales them back down when demand drops.
  • Cross-team collaboration: Data Engineers, analysts, and ML engineers can work off the same dataset in real time, using SQL, Python, or third-party tools.
  • Data sharing across organizations: Snowflake’s architecture supports secure data sharing with external partners or vendors without copying or moving data. You simply grant access.

Business impact: This makes Snowflake not just a warehouse but a collaboration platform for data. Whether your team is distributed across continents or collaborating with external partners, Snowflake enables fast, consistent, and secure access to data.

3. Zero management with cloud-native infrastructure

Managing a traditional database means dealing with provisioning, tuning, indexing, patching, and more. These tasks require specialized DBAs and often lead to downtime, delays, and human error.

Snowflake flips the script with a “zero-management” approach.

Thanks to its fully managed SaaS model:

  • No infrastructure to manage. Snowflake runs entirely in the cloud (on AWS, Azure, or GCP), abstracting away the underlying hardware.
  • Automatic tuning and optimization. No need to manually set indexes or optimize queries, Snowflake handles that under the hood.
  • Security and compliance out of the box. Features like automatic encryption, role-based access control, and compliance with standards (HIPAA, GDPR, SOC 2) are built-in.

Business impact: This lets your team focus on data and insights, not on maintenance. IT teams no longer need to waste time on low-value operational tasks. Instead, they can accelerate innovation and reduce costs.

Snowflake vs. the competition: why architecture matters

In 2025, your data architecture is more than a technical choice. It is a strategic decision that defines how quickly your organization can compete, innovate, and scale. When you compare modern data platforms, Snowflake's architectural advantages become clear when compared to alternatives:

How Snowflake’s architecture drives results?

Snowflake’s architecture solves the trade-offs that hold traditional databases back and delivers flexibility that many cloud platforms still lack. But technology alone is not enough. The difference comes from how you implement it.

Take the case of a $200M pharmaceutical distributor. Their teams were stuck with siloed on-prem systems, compliance risks, and reports that took hours to run. Our Snowflake-certified experts helped them migrate to Snowflake’s cloud-native architecture with a single governed data layer, dedicated compute clusters, and built-in role-based access. In just 90 days, reporting was 80% faster, the architecture was ready for AI and advanced analytics, and teams finally worked from the same source of truth.

👉 Read the full case study here

Making Snowflake’s architecture work for your business

Every organization’s data challenges look different, but the goal is the same: to turn Snowflake into a platform that delivers measurable results. That’s where Snowstack comes in. We bring proven experience from complex projects in finance, pharma, and FMCG. This gives clients confidence that their architecture is designed for scale, collaboration, and compliance from day one. Our role goes beyond implementation. We act as a long-term partner who helps data teams adapt, optimize, and grow with Snowflake as business needs evolve.

Are you getting the full value from Snowflake’s architecture?

FAQs

Snowflake's architecture separates storage and compute into independent layers, unlike traditional databases that tightly couple these resources. This means you can scale processing power without paying for additional storage, and store massive amounts of data without impacting query performance. Snowflake also provides unlimited concurrency through multi-cluster compute, automatic optimization, and zero infrastructure management.

Snowflake focuses on data warehousing, BI, and analytics with SQL-first approach and zero management overhead . Databricks specializes in data science, machine learning, and complex analytics with notebook-based development. Check our blog to explore the differences.

Snowflake uses a consumption-based pricing model with separate charges for storage and compute . You pay for data storage based on the amount stored (compressed), and compute costs based on the size and duration of warehouse usage. Credits are consumed only when warehouses are actively running queries. Check our blog to find out how you can optimize your data warehouse costs.

No, Snowflake is a cloud-native platform that runs exclusively on AWS, Azure, and Google Cloud Platform. However, this cloud-only approach is actually an advantage. It eliminates the infrastructure management overhead, provides automatic scaling, and ensures you always have access to the latest features and security updates without manual maintenance.

Yes, Snowflake natively supports semi-structured and unstructured data formats including JSON, XML, Parquet, Avro, and even binary data like images and documents.

Implementation timelines vary based on data complexity and organizational requirements. Simple migrations can be completed in 4–8 weeks, while comprehensive enterprise transformations typically take 3–6 months. Using proven frameworks and experienced implementation partners like Snowstack can significantly accelerate timelines while reducing risks and ensuring best practices from the start.

Snowflake runs natively on AWS, Azure, and Google Cloud Platform, using each cloud provider's infrastructure while maintaining a consistent experience across all platforms. You can even replicate data across different cloud regions or providers for disaster recovery and compliance requirements. Snowflake handles all the underlying infrastructure complexity, so you focus on your data, not cloud management.

Yes, Snowflake integrates with SQL Server, Oracle, and virtually any database through various methods: direct connectors, ETL tools like Fivetran or Informatica, custom APIs, and batch file transfers. Many organizations use Snowflake as their central data warehouse while keeping operational systems on SQL Server or Oracle, replicating data through automated pipelines.

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How Snowflake cost is calculated: 5 steps to optimize your data warehouse costs before your next renewal

For data teams, the pattern is almost always the same. You move to Snowflake for performance and scale. But then the first bill lands, and suddenly your Snowflake warehouse costs are far higher than forecast. What went wrong?

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For data teams, the pattern is almost always the same. You move to Snowflake for performance and scale. But then the first bill lands, and suddenly your Snowflake warehouse costs are far higher than forecast. What went wrong?

The first step to regaining control is understanding how Snowflake costs are calculated. This guide breaks down the cost structure and gives you five practical steps to optimize spend, so you only pay for the resources you actually need and can design a sustainable Snowflake FinOps practice before your next renewal.

But first, what Snowflake is used for?

Snowflake is a cloud data platform that enables organisations to store, process, and analyse data at scale. It operates on the three leading cloud providers (Amazon Web Services, Google Cloud Platform, and Microsoft Azure), giving businesses flexibility in how they deploy and expand their environments, whether as a greenfield implementation or as part of a larger Snowflake data platform rollout.

As a fully managed service, Snowflake removes the burden of infrastructure management. Users do not need to handle hardware, software updates, or tuning. Instead, they can focus entirely on working with their data while the platform manages performance, security, and scalability in the background - often with a lean internal team supported by a specialised Snowflake platform team.

One of Snowflake’s defining features is the separation of storage and compute, which allows each to scale independently. This design supports efficient resource usage, quick provisioning of additional capacity when needed, and automatic suspension of idle compute clusters known as virtual warehouses. These capabilities reduce costs while maintaining high performance when they’re configured with a cost-optimisation strategy.

Why your Snowflake cost keeps growing?

Before we discuses optimization, let's decode what you're actually paying for. Because if you're like most data teams, you're probably overpaying for things you didn't know you were buying.

Snowflake’s pay-as-you-go model is built on two primary components: compute and storage, along with a smaller component, cloud services.

1. Compute costs

This is typically the largest portion of your Snowflake bill. Compute is measured in Snowflake credits, an abstract unit that's consumed when a virtual warehouse is active.

Here's how the math works:

  • Virtual Warehouses: These are the compute clusters (EC2 instances on AWS, for example) that run your queries, data loads, and other operations.
  • "T-Shirt" Sizing: Warehouses come in sizes like X-Small, Small, Medium, Large, etc. Each size up doubles the number of servers in the cluster and, therefore, doubles the credit consumption per hour.
  • Per-Second Billing: You're billed for credits on a per-second basis after the first 60 seconds of a warehouse running.

The formula for calculating the cost:

Credits Consumed = (Credits per hour for the warehouse) × (Total runtime in seconds) ÷ 3600

Real example: Running a Large warehouse (8 credits/hour) for 30 minutes (1800 seconds) would consume (8 * 1800)÷3600 = 4 credits. If you're paying $3 per credit, that half-hour just cost you $12. Scale that across dozens of queries per day, and you can see how costs spiral.

2. Storage Costs

At first, storage looks inexpensive compared to compute, but as data grows costs can rise quickly. Snowflake calculates storage charges based on the average monthly volume of data you store in terabytes. Because your data is automatically compressed, you’re billed on the compressed size, which most teams overlook.

You're paying for three different types of storage:

  1. Active Storage: The live data in your databases and tables.
  2. Time-Travel: Data kept to allow you to query or restore historical data from a specific point in the past. The default retention period is 1 day, but it can be configured up to 90 days for Enterprise editions.
  3. Fail-safe: A 7-day period of historical data storage after the Time-Travel window closes, used for disaster recovery by Snowflake support. This is not user-configurable.

3. Cloud services costs

The cloud services layer provides essential functions like authentication, query parsing, access control, and metadata management. For the most part, this layer is free. You only begin to incur costs if your usage of the cloud services layer exceeds 10% of your daily compute credit consumption. This is rare but can happen with an extremely high volume of very simple, fast queries.

5 steps to optimize your Snowflake warehouse costs

Now that you know what you're paying for, here are five steps to significantly reduce your spend.

Step 1: right-size your virtual warehouses

Running an oversized warehouse is like using a sledgehammer to crack a nut - it's expensive and unnecessary.

  • Start small: Don't default to a Large warehouse. Begin with an X-Small or Small and only scale up if performance is inadequate. It's often more efficient to run a query for slightly longer on a smaller warehouse than for a few seconds on a larger one. Look for slow queries in the Query History that generate a lot of “Bytes spilled to local storage”. For large joins or window functions, going for a Small to Large warehouse might be 4 times more expensive, but 10x faster, resulting in a 60% cost reduction.
  • Set aggressive auto-suspend policies: An active warehouse consumes credits even when it's  inactive. Configure your warehouses to auto-suspend quickly when not in use. A setting of 1 to 5 minutes is a good starting point for most workloads. This single change can have a massive impact on your bill.
  • Separate your workloads: Don't use one giant warehouse for everything. Create separate warehouses for different teams and tasks: (e.g., ELT_WH for data loading, BI_WH for analytics dashboards, DATASCIENCE_WH for ad-hoc exploration). This prevents a resource-intensive data science query from slowing down critical business reports and allows you to tailor the size and settings for each specific workload.
  • Use multi-cluster warehouses for high concurrency: If you have many users running queries simultaneously (like a popular BI dashboard), instead of using a larger warehouse (scaling up), configure a multi-cluster warehouse (scaling out). This will automatically spin up additional clusters of the same size to handle the concurrent load and spin them down as demand decreases.

Step 2: optimize your queries and workloads

Inefficient queries are a primary driver of wasted compute credits. A poorly written query can run for minutes on a large warehouse when a well-written one could finish in seconds on a smaller one.

  • Use the Query Profile: This is your best friend for optimization. Before trying to fix a slow query, run it and then analyse its performance in the Query Profile. This tool provides a detailed graphical breakdown of each step of query execution, showing you exactly where the bottlenecks are (e.g., a table scan that should be a prune, an exploding join).
  • Avoid SELECT *: Only select the columns you actually need. Pulling unnecessary columns increases I/O and can prevent Snowflake from performing "column pruning," a key optimization technique.
  • Be careful with JOINs: Ensure you are joining on keys that are well-distributed. Accidental Cartesian products (cross-joins) are a notorious cause of runaway queries that can burn through credits.
  • Materialize complex views: If you have a complex view that is queried frequently, consider materializing it into a table. While this uses more storage, the compute savings from not having to re-calculate the view on every query can be substantial. Use Materialized Views for this, as Snowflake will automatically keep them up-to-date.

Step 3: manage your data storage lifecycle

While cheaper than compute, storage costs can creep up. Proactive data management is key.

  • Configure Time-Travel Sensibly: Do you really need 90 days of Time-Travel for every table? For staging tables or transient data, a 1-day retention period is often sufficient. Align the Time-Travel window with your actual business requirements for data recovery.
  • Use Transient and Temporary Tables: For data that doesn't need to be recovered (like staging data from an ELT process), use transient tables. These tables do not have a Fail-safe period and only have a Time-Travel period of 0 or 1 day. This can significantly reduce your storage footprint for intermediate data.
  • Periodically Review and Purge Data: Implement a data retention policy and periodically archive or delete data that is no longer needed for analysis.

Step 4: maximize caching to get free compute

Snowflake has multiple layers of caching that can dramatically reduce credit consumption if leveraged correctly. When a query result is served from a cache, it consumes zero compute credits.

  • The Result Cache: Snowflake automatically caches the results of every query you run. If another user submits the exact same query within 24 hours (and the underlying data has not changed), Snowflake returns the cached result almost instantly without starting a warehouse. This is perfect for popular dashboards where many users view the same report.
  • Local Disk Cache (Warehouse Cache): When a warehouse executes a query, it caches the data it retrieved from storage on its local SSD. If a new query requires some of the same data, it can be read from this much faster local cache instead of remote storage, speeding up the query and reducing compute time. This cache is cleared when the warehouse is suspended.

Step 5: implement robust governance and monitoring

You can't optimize what you can't measure. Use Snowflake's built-in tools to monitor usage and enforce budgets.

  • Set up Resource Monitors: This is your primary safety net. A Resource Monitor can be assigned to one or more warehouses to track their credit consumption. You can configure it to send alerts at certain thresholds (e.g., 75% of budget) and, most importantly, to suspend the warehouse when it hits its limit, preventing runaway spending.
  • Analyse your usage data: Snowflake provides a wealth of metadata in the SNOWFLAKE database, specifically within the ACCOUNT_USAGE schema. Views like WAREHOUSE_METERING_HISTORY, QUERY_HISTORY, and STORAGE_USAGE are invaluable. Query this data to find your most expensive queries, identify your busiest warehouses, and track your storage costs over time.
  • Tag everything for cost allocation: Use Snowflake's tagging feature to assign metadata tags to warehouses, databases, and other objects. You can tag objects by department (finance, marketing), project, or user. This allows you to query the usage views and accurately allocate costs back to the teams responsible, creating accountability.

Bringing it all together

So what’s your next step? These five practices will help you reduce costs and build smarter habits, but turning them into measurable savings at scale takes more than a checklist. It requires the right expertise and execution.

For example, a leading financial services company was spending more than $800K per month on cloud costs with no clear view of where the money was going. Within 90 days of working with our experts, they gained full visibility, reduced ingestion latency by 80%, and built a governed, AI-ready platform while bringing costs back under control.

👉 Read the full case study here

At Snowstack, we bring certified Snowflake expertise and proven delivery methods to help enterprises cut spend, improve performance, and prepare their platforms for AI and advanced analytics.

Ready to make your Snowflake environment cost-efficient and future-proof?

Snowflake FinOps FAQs

FAQs

Snowflake FinOps applies cloud FinOps principles specifically to Snowflake: making engineers, data teams, and finance jointly accountable for usage, budgets, and optimisation. It combines technical levers (warehouse design, query tuning, data lifecycle) with financial controls (budgets, alerts, chargeback/showback).

In practice, high-performing teams treat FinOps as a shared function between a data platform lead, finance/controlling, and business owners.

Smaller teams can often get early wins with basic best practices, but once Snowflake spend reaches tens of thousands per month, involves multiple business units, or sits ahead of a major renewal or migration, a specialised Snowflake consultant usually pays for itself through avoided waste and better contract decisions.

You can use the ROI calculator with a Snowflake consultant . You can also estimate your Snowflake costs yourself, but you need to (1) baseline current or expected workloads, (2) translate them into warehouse sizes, runtimes, and storage growth, and (3) compare on-demand vs. capacity scenarios with your real credit price.

Many pricing guides recommend modelling this by workload type (batch, BI, AI, data sharing) rather than using a single “average” number.

For most teams, 80–90% of Snowflake spend comes from compute, and that’s where costs quietly creep up: oversized warehouses, no auto-suspend, inefficient queries, long-running jobs, and generous Time-Travel or Fail-safe settings that bloat storage.

Yes. Snowflake does not charge to bring data into your account, but it does charge per-byte for data egress when you move data to another region or another cloud, and those charges vary by region.

When Snowstack designs multi-region or cross-cloud setups as part of Snowflake consulting & architecture , data placement and sharing patterns are modelled up front so your FinOps plan includes egress, not just warehouse and storage costs.

Snowflake feels expensive when usage patterns are inefficient, not because the platform is inherently overpriced. Common cost drivers are always-on or oversized warehouses, multi-cluster configurations that never scale down, poorly tuned queries, overly long Time-Travel retention, and cross-region data movement.

Talk to Snowflake consultants for guidance.

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