Snowflake Data Warehouse Architecture

What is a Data Warehouse?

A Data Warehouse is a big storage place for data. It collects data from many sources, organizes it, and stores it in a clean way so companies can easily use it to take better decisions.

Imagine it like a library — but instead of books, it stores useful business data like customer info, sales records, website clicks, orders, payments, and more.

This system is specially made for business analysis, reporting, and decision-making. (snowflake Training in Hyderabad


Why Do Companies Need a Data Warehouse?

Let’s take an example. A company sells clothes online and offline. It collects data from

  • Website orders

  • In-store purchases

  • Mobile app

  • Payment systems

  • Customer feedback

Now imagine all that data is stored in different places. It becomes very hard to understand:

  • How many shirts sold last month?

  • Which store has the highest sales?

  • Which product is most loved by customers?

A Data Warehouse solves this problem by bringing all data into one place, cleaning it, organizing it, and making it easy to search and use.

That’s why companies need a data warehouse – to get a clear picture of their work and plan smartly.

Types of Data Warehouse Architecture

A data warehouse is like a big storage system where companies store all their important data. This data can be about sales, customers, employees, products, etc.

But how this data is organized, stored, and used depends on something called "architecture."

Think of architecture like the blueprint or structure of a building. In data warehousing, it’s the structure of how data flows from the source (where it comes from) to the place where people use it (like reports and dashboards).

1.Single-Tier Architecture


What is Single-Tier Architecture?

This is the simplest type of data warehouse architecture.

In this structure, everything happens in one place:

  • Data is collected

  • Data is stored

  • Data is used for reports and analysis

All of this is done in the same system.

Easy Example

Imagine you have only one notebook

  • You write your school notes

  • You solve your homework

  • You also prepare for exams — all in one notebook

That’s how single-tier architecture works — everything in one place.

Key Features

  • One system handles all tasks

  • Very basic structure

  • Used for very small applications

Advantages

  • Very simple to set up

  • Low cost

  • Easy for small systems or learning

Disadvantages

  • Not good for large data

  • Can become slow

  • Not very secure or efficient

Where It Is Used

  • Personal projects

  • Small test environments

  • Not common in big companies


2.Two-Tier Architecture


What is Two-Tier Architecture?

In this architecture, the work is divided into two parts or layers

  1. One layer for storing the data (Data warehouse or database)

  2. Another layer for using the data (like reports, charts, dashboards)

These two parts are connected directly to each other.

Easy Example

  • One notebook to collect all notes (data storage)

  • Another notebook to summarize and revise the notes (reporting)

So you have two notebooks, each with a different purpose — that’s two-tier.

Key Features

  • One system stores data

  • Another system shows the data to users

Advantages

  • Better than single-tier

  • Data is organized more clearly

  • Faster performance compared to single-tier

Disadvantages

  • Still limited in handling big data

  • Can become slow with too many users

  • Less secure than more advanced systems

Where It Is Used

  • Small to medium-sized companies

  • Simple business tools and small teams


3.Three-Tier Architecture


What is Three-Tier Architecture?

This is the most powerful and widely used architecture in the real world.

It has three layers, and each layer does a different job:


Tier 1: Bottom Layer – Data Source & Staging Area

  • This is where raw (original) data comes in

  • Data is collected from different places: apps, files, web, Excel, etc.

  • The data is cleaned and prepared (called ETL process)

Like cleaning vegetables before cooking.
This stage prepares data for storage.


Tier 2: Middle Layer – Data Warehouse Layer

  • The clean data is stored here in an organized way

  • Data is saved in tables and made ready for reporting

  • Can store a large amount of data safely for many years

Think of this as your fridge — clean food (data) stored neatly.


Tier 3: Top Layer – Presentation or Reporting Layer

  • This is where people use the data

  • They create reports, dashboards, and graphs using tools

  • Tools like Power BI, Tableau, Excel are used here

Think of this as the dining table — clean food is served ready to eat (data ready to use).


Key Features of Three-Tier

  • Data flows from source → staging → storage → reporting

  • Uses ETL (Extract, Transform, Load) tools

  • Used in modern data platforms like Snowflake, Redshift, BigQuery

Advantages

  • Very powerful and fast

  • Good for huge amounts of data

  • Many users can work at the same time

  • Strong security and backup options

Disadvantages

  • Costlier to set up

  • Needs trained people to manage

  • More complex than other models

Where It Is Used:

  • Big businesses like banks, hospitals, e-commerce, tech companies

  • Any company with lots of data and reporting needs

Components of Snowflake Data Warehouse Architecture

Snowflake is a cloud-based platform that helps companies to store, process, and analyze data. It is specially designed to handle a lot of data, and it works fast, even with very large data files.

Snowflake has three main parts (also called layers). Each part does a different job, and all three parts work together.

1. Storage Layer – (Where the Data is Saved)

What is it?

This is the part of Snowflake where all the data is stored. Think of it as a huge, safe storage room on the internet where you can keep any kind of data.

Simple Example

Imagine you are running a store. You keep records of:

  • Customers

  • Products

  • Sales

  • Payments

All this information is stored safely in the storage layer.

Types of Data You Can Store

  • Structured data: Like tables with rows and columns (example: Excel sheet)

  • Semi-structured data: Like JSON, XML (example: Web data)

Features

  • Data is compressed to use less space.

  • It’s stored automatically and safely.

  • You can store unlimited data without worry.

  • It uses cloud services like AWS, Azure, or Google Cloud.


2. Compute Layer (Virtual Warehouse) – (Where the Work Happens)

What is it?

This is the part where all the data work is done. Whenever you search for data or do calculations, this layer does the job.

Snowflake calls this the "Virtual Warehouse".

Example

Think of it like workers in a factory

  • They go into the storage room

  • Pick the right data

  • Process it

  • Give you the results

This is what the compute layer (Virtual Warehouse) does. It reads the data and does the processing.

What Can You Do Here?

  • Run SQL queries

  • Create reports

  • Generate dashboards

  • Do data analysis

Features

  • You can run many warehouses at the same time.

  • Each team can have their own warehouse.

  • You can pause or start a warehouse anytime.

  • You can increase or decrease the size depending on how fast you want the result.


3. Cloud Services Layer – (The Brain of the System)

What is it?

This is the control system of Snowflake. It handles everything behind the scenes. It does not store or process data directly, but it manages everything else.

Think of it like a manager in a company

  • Controls who can enter and what they can see

  • Gives tasks to workers

  • Keeps everything working smoothly

This layer makes smart decisions so everything runs without problems.

What Does It Do?

  • Handles user login and passwords

  • Controls who can access what data

  • Tracks all activities in Snowflake

  • Helps make SQL queries faster

  • Controls data sharing and automation

Features

  • Secure login with options like multi-factor authentication

  • Query optimization to give you quick answers

  • Metadata management (metadata is info about your data)

  • Access control with roles and permissions

How All 3 Parts Work Together

“How many items did we sell last month in Hyderabad?”

  1. Cloud Services Layer: Checks if you are allowed to access the data.

  2. Compute Layer: Goes to work by reading and processing the data.

  3. Storage Layer: Provides the sales data saved inside.

  4. The answer is shown on your screen in seconds.

This is how all 3 components work as a team.

Features of Snowflake Data Warehouse

What it means
Snowflake is not installed on your local computer or office server. It works completely on the internet (cloud). You don’t have to buy or manage hardware.

Why it's good

  • No need for physical machines.

  • Easy to access from anywhere.

  • You can increase or decrease the usage easily.


2.Separation of Storage and Compute

What it means
In Snowflake, data storage and data processing work separately. This means saving data (storage) and doing calculations (compute) are independent.

Why it's good

  • You can store a lot of data but use processing power only when needed.

  • It saves money and makes the system faster.


3.Auto-Scaling and Auto-Suspend

What it means
Snowflake can automatically increase its power when many users are working. When no one is using it, it can pause itself to save costs.

Why it's good

  • No need to manually monitor usage.

  • Saves money when not in use.

  • Automatically handles heavy workloads.


4.Time Travel

What it means
You can go back to the past version of your data (like undo). If you delete something by mistake, you can recover it.

Why it's good

  • Protects data from accidents.

  • Helps in audits and checking past records.

  • You can see data from hours or days ago.


5.Data Sharing

What it means
You can share your data with other Snowflake users safely without sending files.

Why it's good

  • No need to download or email files.

  • Instant sharing with high security.

  • Useful for business partners and teams.


6.High Security

What it means
Snowflake protects your data using advanced security methods like encryption, multi-factor authentication, and access controls.

Why it's good

  • Keeps sensitive data safe.

  • Only the right people can see the data.

  • Meets legal and business security standards.


7.Support for Structured and Semi-Structured Data

What it means
It can handle both regular (like tables with rows and columns) and non-regular data (like JSON, XML).

Why it's good

  • You can use all types of data in one place.

  • No need for different tools for different formats.

  • Saves time and effort.


8.Works with All Major Cloud Platforms

What it means
Snowflake runs on Amazon AWS, Microsoft Azure, and Google Cloud. You can choose your preferred platform.

Why it's good

  • Flexible for companies using different cloud services.

  • Easy to move or connect data across platforms.


9.Easy Integration with Tools

What it means
You can connect Snowflake with BI tools (like Tableau, Power BI), ETL tools (like Talend, Informatica), and programming languages.

Why it's good

  • Helpful for data analysts and developers.

  • Smooth connection with existing tools and apps.

  • Speeds up reporting and automation.


10.Zero Maintenance

What it means
Snowflake takes care of system upgrades, performance tuning, and backups on its own.

Why it's good

  • Saves time and effort for IT teams.

  • No downtime or manual updates.

  • Always running the latest version.


11.Scalability

What it means
Snowflake can grow with your data. If you have small or huge data, it handles both smoothly.

Why it's good

  • No limit on storage or users.

  • Good for startups and big companies.

  • Pay only for what you use.


12.Multi-Cluster Warehouses

What it means
It can run many tasks at the same time without slowing down. Each task gets its own power.

Why it's good

  • Many people can work at the same time.

  • No delays or slow performance.

  • Ideal for large teams.

1.Cloud-Based System – No Hardware Needed

What it means
Snowflake is a cloud-based system. This means you don’t need to install any hardware (like servers) or software at your office. It runs completely on the internet using cloud platforms like AWS, Azure, or Google Cloud.

Why it is an advantage

  • No setup or maintenance of machines.

  • Saves money and space.

  • You can access your data from anywhere at any time.

  • Very useful for remote teams and work-from-home setups.


2.Separation of Storage and Compute – Saves Money and Improves Performance

What it means
Snowflake separates the storage (where your data is saved) from compute (the engine that processes your data). They work independently.

Why it is an advantage

  • You can store a lot of data without paying for compute until needed.

  • If you need only processing power (like for analysis), you don’t need to increase storage.

  • More flexibility and better performance.

  • Pay only for what you use.


3.Automatic Scaling – Grows With Your Needs

What it means
Snowflake can automatically increase or decrease its performance power based on your work.

Why it is an advantage

  • Handles both small and large workloads easily.

  • You don’t have to manually change any settings.

  • When more users log in, Snowflake adjusts itself to give fast performance.

  • Saves cost by reducing power when not in use.


4.Multi-Cluster Architecture – Supports Many Users at Once

What it means
Multiple users or teams can use Snowflake at the same time without slowing each other down.

Why it is an advantage

  • No delays or wait times when multiple people run reports or queries.

  • Great for big teams in large companies.

  • Everyone gets smooth performance even during peak hours.


5.Time Travel – Undo Mistakes Easily

What it means
Snowflake stores old versions of your data for a few days (default is 1 day, can go up to 90 days). You can “travel back in time” to restore your data.

Why it is an advantage

  • You can recover data that was deleted by mistake.

  • You can compare previous and current versions.

  • Useful during audits or troubleshooting.


6.Zero-Copy Cloning – Make Instant Copies

What it means
You can create a full copy of a table, schema, or database without using extra space or time.

Why it is an advantage

  • Saves time and storage space.

  • You can test changes without affecting the original data.

  • Good for development, testing, and backups.


7.High Security – Keeps Data Safe

What it means
Snowflake uses strong security features like data encryption, user roles, and multi-factor authentication.

Why it is an advantage

  • Keeps your data protected from hackers or unauthorized access.

  • Allows different access for different users (e.g., read-only or full access).

  • Meets industry security standards (good for finance, healthcare, etc.).


8.Supports All Data Types – Structured and Semi-Structured

What it means:
Snowflake can handle normal table data (like Excel sheets) and also complex data formats (like JSON, XML, Parquet).

Why it is an advantage

  • No need for separate tools for different data types.

  • You can store and analyze all types of data in one place.

  • Saves time, cost, and effort.


9.Easy Data Sharing – Share Without Sending Files

What it means
You can share your data with others (inside or outside your company) safely and instantly, without emailing or downloading files.

Why it is an advantage:

  • Saves time.

  • Reduces errors or version confusion.

  • Better for real-time collaboration between partners, clients, and teams.


10.Automatic Backups and Updates – No Downtime

What it means
Snowflake updates itself and takes regular backups automatically. You don’t need to worry about system crashes or old versions.

Why it is an advantage

  • Less work for IT teams.

  • No system downtime.

  • You always work with the latest version and most secure setup.


11.Integrates with Many Tools – Easy Connection

What it means
Snowflake connects with popular tools like Tableau, Power BI, Python, Informatica, Talend, and more.

Why it is an advantage

  • You can build reports, dashboards, and pipelines quickly.

  • Fits into your existing workflow.

  • Saves time during setup.


2.Fast Performance with Caching – Quick Results

What it means
Snowflake stores the results of recent queries in cache memory. If you run the same query again, it gives results quickly without recalculating.

Why it is an advantage

  • Very fast performance.

  • Saves time and compute cost.

  • Ideal for reports that run regularly.


3.Pay-as-You-Go – No Waste of Money

What it means
You pay only for what you use. There are no big upfront costs.

Why it is an advantage

  • Very cost-effective.

  • You can start small and grow later.

  • Good for startups and large enterprises alike.


14. Global Availability – Access Anywhere

What it means
Snowflake works in multiple cloud regions and data centers around the world.

Why it is an advantage

  • Supports global teams.

  • Keeps data near users for faster access.

Improves user experience.

What Is a Traditional Data Architecture?

A traditional data architecture is the old way of storing and using data. It is built on fixed hardware (like servers in your office) and usually requires

  • Manual work to increase storage or power.

  • Big upfront costs to buy machines and tools.

  • Separate systems for storing and analyzing data.

  • Time-consuming maintenance and updates.


What Is the Snowflake Data Cloud?

The Snowflake Data Cloud is a modern data warehouse built for the cloud. It is fully online and lets you store, share, and analyze large data easily. Snowflake uses cloud services like AWS, Azure, or Google Cloud and gives you

  • On-demand power and storage – no need to buy physical machines.

  • Pay for what you use – no waste of money.

  • Easy to use – quick setup and less manual work.

  • One platform – everything in one place: store, process, share, and analyze.


Main Differences: Snowflake vs. Traditional Architectures


1.Infrastructure (How They Are Built)

Traditional

  • Runs on physical servers.

  • Needs space, cooling, electricity.

  • Hard to scale (takes time to add more).

Snowflake

  • Runs in the cloud (no physical servers).

  • No setup needed – it’s ready to use.

  • Easy to grow or reduce power anytime.

Snowflake saves time, effort, and space.


2.Scalability (Handling More Data or Work)

Traditional

  • Adding storage or power takes time.

  • You might buy more than needed (waste).

Snowflake

  • Easily scales up or down based on need.

  • Pay only for what you use.

Snowflake is more flexible and cost-saving.


3.Maintenance (Keeping It Running)

Traditional

  • Needs a team to update, fix, or manage.

  • Downtime is possible during maintenance.

Snowflake

  • Managed by Snowflake team.

  • Automatic updates.

  • Almost zero downtime.

Snowflake is simple and low-maintenance.


4.Data Sharing

Traditional

  • Sharing data between systems is hard.

  • Often involves copying data manually.

Snowflake

  • Lets you securely share live data.

  • No need to move or copy.

Faster and safer data collaboration.


5. Performance and Speed

Traditional

  • Slower performance with big data.

  • Complicated tuning for better speed.

Snowflake

  • Fast queries, even with large data.

  • Uses smart caching and virtual warehouses.

Snowflake is quicker and easier to manage.

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Snowflake masters
Snowflake masters

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