What happened? But my more general question is: what are the forces that favor a company like Snowflake? 5 And what does that mean for other cloud products? What if….? Anyway, this is what it looks like nine years later 4: Maybe because of the value of lock-in, they could even subsidize the development of Redshift and make up the money through other products. AWS had large economies of scale, had control of the underlying substrate (EC2), and could make larger investments in building the software. If you looked at Redshift in 2012, there was a lot of things that favored it. Basically their entire offering is a data warehouse that looks fairly similar to Redshift. Snowflake 2 is a $100B+ publicly traded company. You could spin up a Redshift cluster in AWS, feed it humongous amounts of data, and it would … sort of just work. You didn't have to set up any infrastructure yourself, or write custom mapreduce and reload the jobtracker all day. It was a brilliant move by AWS, because it immediately lowered the bar for a small company to start doing analytics. Redshift at the time was the first data warehouse running in the cloud. AWS licensed their technology, rebranded it Redshift, and launched in 2012. I'm very happy we're out of this era.Īnyway, one vendor was a company called ParAccel. Startups said no to SQL and used Hadoop-SQL was kind of lame back then, for reasons that in hindsight appear absurd. The main player was Teradata, which had an on-prem offering. Redshift is a data warehouse (aka OLAP database) offered by AWS. But let me walk you through my thinking-I think some of it is quite well illustrated through the story of Redshift. What if cloud vendors focus on the lowest layer, and other (pure software) vendors on the layer above?įeel free to bring this up in five years to make me embarrassed about how wrong I turned out to be. We currently have cloud vendors that offer end-to-end solutions from the developer experience down to the hardware: Other pure-software providers will build all the stuff on top of it.Cloud vendors 1 will increasingly focus on the lowest layers in the stack: basically leasing capacity in their data centers through an API.Here's a theory I have about cloud vendors (AWS, Azure, GCP): About Resume Top posts Storm in the stratosphere: how the cloud will be reshuffled
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