Executive Summary
A marketing analytics firm's Snowflake bill reached $200k/year as data volume grew. Migrating to DuckDB on EC2 with Parquet storage reduced costs by 90% while improving query performance for 80% of workloads.
Key Outcomes
- ▹ $200k → $20k annual cost (90% reduction)
- ▹ Query performance improved 3x for aggregations
- ▹ No performance degradation for 80% of queries
Client Situation
The firm processed 50TB of marketing data monthly. Snowflake costs grew linearly with data volume, threatening profitability.
Key Challenges
- ⚠ $16k/month Snowflake bill increasing 20% quarterly
- ⚠ Hard to predict costs—surprise bills common
- ⚠ Most queries were recurring dashboards, not ad-hoc
Existing Architecture
Snowflake as primary data warehouse. dbt for transformations. Tableau for dashboards.
- Compute cost high even for recurring queries
- No ability to optimize for specific workload patterns
- Cold storage still expensive for historical data
Solution Design
DuckDB on EC2 spot instances with Parquet on S3, keeping Snowflake for ad-hoc analysis only.
Key Decisions
- ✓ DuckDB for 80% of queries (recurring dashboards)
- ✓ S3 Parquet as data lake (5x cheaper than Snowflake storage)
- ✓ dbt running on EC2 instead of Snowflake
Implementation
Migrated non-critical dashboards first, then critical ones after validation.
Phase 1: Phase 1: POC
Proved DuckDB could run 80% of queries faster at 10% cost.
Phase 2: Phase 2: dbt Migration
Moved dbt transformations from Snowflake to DuckDB on EC2.
Phase 3: Phase 3: Dashboard Cutover
Switched 200 Tableau dashboards to DuckDB backend.
Technical Challenges
- dbt on DuckDB missing features
Impact: Incremental models and macros not fully compatible
Resolution: Forked dbt-duckdb with custom patches for missing features
- Concurrent query handling
Impact: Single DuckDB process bottlenecks with 10+ concurrent dashboards
Resolution: Read-only replicas per dashboard pod (horizontal scaling)
Results
- Annual data warehouse cost
- Before$200,000After$20,000Improvement90% reduction
- Query performance (80th percentile)
- Before2.5 secondsAfter0.8 secondsImprovement3x faster
- Cost predictability
- BeforeVariableAfterFixed EC2 pricingImprovement100% predictable
Lessons Learned
- 📘 80/20 rule applied: 80% of queries were recurring and perfect for DuckDB
- 📘 EC2 spot instances (70% discount) further reduced costs
- 📘 Keeping Snowflake for 20% of ad-hoc queries provided flexibility
What We Would Do Differently
- 💡 Use DuckDB's HTTPfs for direct S3 queries earlier
- 💡 Implement query result caching for dashboard reuse
Role Relevance
DuckDB engineers designed the hybrid architecture that cut costs by 90% while maintaining performance, saving $180k annually.
Critical Skills Demonstrated
Related Roles
Frequently Asked Questions
- What percentage of queries couldn't migrate?
- 20% required Snowflake for massive joins or extremely large aggregations beyond 64GB RAM.
- How did you handle the migration risk?
- Parallel execution for 1 month, comparing DuckDB vs Snowflake results before cutover.