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Marketing Analytics

Reducing Data Warehouse Costs Using DuckDB

A marketing analytics firm reduced data warehouse costs by 90% by replacing Snowflake with DuckDB on EC2.

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
DuckDBAWS EC2ParquetdbtAirflow

Implementation

Migrated non-critical dashboards first, then critical ones after validation.

  1. Phase 1: Phase 1: POC

    Proved DuckDB could run 80% of queries faster at 10% cost.

  2. Phase 2: Phase 2: dbt Migration

    Moved dbt transformations from Snowflake to DuckDB on EC2.

  3. 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$200,000
After$20,000
Improvement90% reduction
Query performance (80th percentile)
Before2.5 seconds
After0.8 seconds
Improvement3x faster
Cost predictability
BeforeVariable
AfterFixed EC2 pricing
Improvement100% 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

Cost optimizationHybrid cloud architecturedbt on DuckDBS3/Parquet optimization

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.