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Six Questions to Ask When Choosing a Data Warehouse

Data Culture Team
Apr 15, 2025
7
min read

The data warehouse is likely the biggest investment in your data stack. Once it’s in place, it’s often the hardest component to change, so choosing the right one is crucial.

As a platform-agnostic data consultancy, we’ve worked with all major data warehouses and learned that the "best" choice isn't one-size-fits-all. It all depends on your team's needs, your current tech stack, and your future goals. Here are the six key questions we ask when helping teams make a decision.

The Key Players

When we talk about enterprise data warehouses, we're referring to platforms designed for primary data use cases, such as business intelligence (BI), data science, and analytics. These platforms are optimized to manage large volumes of data for reporting, analysis, and decision-making. They are not typically intended for production use cases, such as transactional systems or real-time application support.

At Data Culture, we focus on helping teams choose the right data warehouse for these primary use cases. There are several key players in this space, each with its own strengths depending on your team’s needs and infrastructure.

Here's a breakdown of the major platforms that dominate the enterprise data warehouse space:

Six Questions to Ask When Choosing a Data Warehouse

1. What cloud infrastructure are you already using (GCP, AWS, Azure)?

2. Do you have in-house data engineering expertise?

3. How important is predictable cost and billing transparency?

4. Will you need specialized or advanced features?

5. Do you have significant compliance, governance, or security requirements?

6. Are you optimizing for now or planning for future scale?

Let’s dive in to each one.

1. What cloud infrastructure are you already using (GCP, AWS, Azure)?

Choosing a warehouse that fits your existing cloud stack reduces friction, speeds up setup, and streamlines billing and security.

Consider your options:

  • If you’re on GCP, BigQuery often gives you the simplest and most cost-effective setup.
  • If you’re on AWS, Redshift integrates tightly with tools like S3, Glue, and IAM.
  • If you’re multi-cloud or want flexibility, Snowflake runs across clouds and minimizes lock-in.
  • Microsoft Fabric is ideal if you're already deep in the Microsoft ecosystem.

The bottom line:Stick with your cloud provider unless multi-cloud flexibility is a priority, then Snowflake leads the pack.

2. Do you have in-house data engineering expertise?

The level of technical skill on your team should shape how much you invest in managing vs. automating infrastructure and performance. Do you have engineers who can manage performance tuning, or are you looking for a warehouse that’s easy to use with minimal overhead?

Consider your options:

  • If you don’t have a large data team, Snowflake is a strong choice. It’s intuitive, handles scaling automatically, and requires minimal tuning.
  • If you have experienced engineers who can manage distribution keys and vacuuming, Redshift offers cost control with more hands-on tuning.
  • BigQuery removes infrastructure management entirely, but requires a strong grasp of query patterns to avoid surprise costs.

The bottom line:Choose a warehouse that matches your team’s capabilities. Snowflake “just works,” while Redshift and BigQuery require more tuning and cost awareness.

3. How important is predictable cost and billing transparency?

Understanding your cost structure upfront helps avoid unexpected expenses and aligns with budgeting needs.

Consider your options:

  • Snowflake offers stable pricing, making it great for predictable costs, but it’s typically more expensive, especially for sustained usage.
  • BigQuery can be very cost-effective if managed well, providing flexibility to only pay for what you use. However, this comes with the risk of unexpected cost spikes if queries or usage aren’t optimized.
  • Redshift strikes a middle ground: it’s more predictable than BigQuery and less expensive than Snowflake, but you’ll need to manage performance and scaling.

The bottom line:If predictability is key, Snowflake is the best bet but comes at a higher price point. However, if you're okay with more variability and have a team to optimize performance, BigQuery or Redshift could be more cost-effective.

4. Will you need specialized or advanced features?

Advanced features like real-time processing, secure data sharing, and machine learning capabilities can drive efficiency and help address specific business needs.

Consider your options:

  • BigQuery is great for real-time event data and streaming analytics.
  • Snowflake excels in secure data sharing and compliance (e.g., HIPAA, SOC 2).
  • BigQuery and Snowflake are top choices if you need to leverage LLMs while staying compliant with minimal setup.

The bottom line:Most warehouses support a flavor of these special features, but if your data strategy relies heavily on one, it might be worth tipping the scales toward the platform that excels in that area.

5. Do you have significant compliance, governance, or security requirements?

Choosing the right security model is crucial for safeguarding sensitive data and meeting your compliance needs.

Consider your options:

  • Snowflake stands out with RBAC (Role-Based Access Control), offering granular access management and compliance features, making it well-suited for industries with strict regulatory requirements.
  • Microsoft Fabric integrates seamlessly with Azure’s security framework, leveraging Azure Active Directory (AAD) and RBAC for secure user and role management, ideal for organizations heavily invested in the Microsoft ecosystem.

The bottom line:While all platforms offer strong security, if you're in a highly regulated environment or need to meet stringent compliance standards, Snowflake and Microsoft Fabric are great options due to their advanced security controls.

6. Are you optimizing for now or planning for future scale?

Deciding whether to optimize for immediate needs or future growth will influence your platform choice. Do you need quick solutions, or are you planning for scalable infrastructure?

Consider your options:

  • BigQuery is ideal for quick setup and low initial costs, especially for teams looking for fast deployment with minimal configuration.
  • Snowflake is highly scalable, making it perfect for handling complex analytics and growing data needs over time.
  • Redshift is great for AWS-centric teams focusing on batch processing and ETL pipelines, but may require more configuration to scale for future growth.

The bottom line:For quick, near-term setup at a low cost, BigQuery is ideal. For long-term scalability, Snowflake is your best bet.

Note on migration: Avoid choosing a warehouse with the intention to migrate off of it later. It’s usually very costly and a huge headache. That said, emerging tools are making migrations easier, particularly from Redshift to Snowflake, with tools like SnowConvert and likely more support in the future.

Choosing the Right Data Warehouse for Your Business

Making the right choice for your data warehouse isn't just about selecting a platform, it’s about finding the one that fits your team’s capabilities, aligns with your tech stack, and supports your long-term growth goals. Take the time to ask these questions, and you'll be well on your way to choosing the right warehouse for your business.

Need help deciding?

We’re happy to provide a 30-minute advisory call to suggest a recommendation based on your needs. Grab some time on our calendar and we'll be happy to help, free of charge!

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