Data Warehouse Costs
    4 minutes read

    It’s essential to select the right data warehouse, business intelligence, and analytics tools, which help you collect cutting-edge insights from your raw data. However, before you start searching, there is a crucial question: what are the costs of a data warehouse?  

    Your selection of data warehouses will bring in a healthy return on investment (ROI). Nevertheless, the ROI of any data warehouse will considerably rely on its features and how well it integrates with your current business workflows and processes. Therefore, concentrating on functionality will need to be prioritized compared to focusing mainly on pricing.   

    That being said, the cost is still a vital factor in any data warehouse purchasing decision. In this post, we’ll walk you through data warehouse costs so that you can reach a smarter decision for your business.   

    What Can a Data Warehouse Give You?

    A data warehouse deals with storing your enterprise data, collected from a diverse range of sources, in an organized and effective manner.   

    This data warehouse is then combined with a business intelligence tool, allowing users to uncover trends and implement sophisticated analyses. Your data warehouse makes sure the information can simply be queried by your selection of BI solutions.   

    Explore What is Cloud Data Warehouse?

    A data warehouse is different from a database. ETL tools gather information from various locations, covering databases and other sources like websites and files, and put it in a single centralized data warehouse. The ETL process (extract, transform, and load) can occur automatically or manually under scheduled pre-defined conditions. When data is in the warehouse, it can then be configured and manipulated.  

    Is your structured and unstructured data widely distributed throughout your business? Let’s build a data warehouse to solve the problem.   

    Data Warehouse Costs: Things Consider

    Storage

    The first thing you need to determine is whether you want to store your data warehouse in the cloud or on in-house servers. If your business already uses a scalable server solution, you can extend some of your storage to fit a data warehouse.   

    Storage Cost in Data Warehouse

    In-house storage  

    Storage fees for an in-house data warehouse can go up to $12,000 per month. In the current marketplace, each additional terabyte of data will charge you upwards of $1000 per year in storage and access fees.   

    Cloud storage  

    If your business is looking for a faster and more scalable data warehouse storage option without any up-front hardware spending, cloud-based storage is the go-to choice.   

    Almost all analytical storage solutions require an additional fee for accessing the data on their servers. Every query and event will cost you: BigQuery requires an additional five cents per gigabyte, while Azure requires five cents for every 10,000 rows of data.   

    More details on The Latest Trends in Data Warehouse 2022 

    Here are three of the most popular storage solutions available on the market:  

    • Amazon Redshift  

    Amazon’s hot storage solution charges $0.08 per gigabyte (GB). This is a flat cost, which means the prices won’t increase or decrease based on your data use. However, it’s still expected to pay more than $1000 per terabyte (TB) per year if you use Amazon.   

    • Google BigQuery  

    Google’s storage solution charges $0.02 per GB. This is a variable cost. Google also requires an extra price for accessing this data. You will need to pay an additional $0.05 for every 100GB that the service accesses for you. If your data warehouse is often accessed by your analytics team, the prices can go up. It’s expected to pay over $720 per TB per year if you go for BigQuery.   

    • Microsoft Azure  

    Azure offers pricing in blobs, meaning the prices increase when you store more data on Azure’s servers. For the first 50 TB per month, you’ll pay $0.0184 per GB, and then the prices go up. Moreover, Azure requires access prices, meaning an extra $0.05 for every 10,000 write operations. Therefore, this solution will cost more than $700 per TB per year.   

     Microsoft Azure Google BigQuery Amazon Redshift 
    Per TB per month $18.43 $20.48 $81.92 
    Per event $0.05/10K Queries $0.05/100GB N/A 

    Software

    Most software with data warehousing functionality is called ETL software.   

    Although ETL can be implemented via certain open-source solutions such as Talend and Apache Hadoop, let’s consider some software options that apply ETL to integrate common database types and SaaS platforms into your data warehouse.   

    Software Cost in Data Warehouse
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    Data centralization   

    There are some options for centralizing your data on cloud storage services. Most of the existing software integrates easily into Google BigQuery or Amazon Redshift.   

    • FlyData   

    FlyData is a comprehensive solution that integrates your databases with your Amazon Redshift storage. The solution enables VPN tunneling and error solving, and different database formats like MySQL, TSV, CSV, JSON, and PostGRESQL.   

    FlyData does not come with any visualization solutions, so it can be used along with services like Tableau and Chartio. Its pricing varies from $200 to $2000 per month.   

    • RJMetrics  

    RJMetrics provides powerful support for SaaS problems such as Google Commerce, Shopify, and Salesforce. In addition to supporting the same databases as FlyData, this solution also supports Microsoft SQL Server, MongoDB, and Heroku. Its pricing ranges from $500 to $2000 per month.   

    • Fivetran  

    Fivetran handles all data from your databases and SaaS services into Google BigQuery and Amazon Redshift databases. However, its pricing model is unavailable online, so you need to contact Fivetran for more information.   

     Fivetran RJMetrics FlyData 
    Less than 10 people $200-500 $500 $200 
    More than 10 people  N/A $2000 $2000 

    Data visualization   

    While some business analysts only work with open-source visualization, you might want to consider some data visualization services that can handle your team’s workflow automatically.   

    • Chartio  

    This business intelligence tool creates visualizations in real-time. The service provides a drag-and-drop interface that creates SQL queries for you. Its costs depend on the size of your business, ranging between $500 and $2000 per month.   

    • QlikView  

    QlikView provides pricing per user, beginning at $25 per user per month. You’ll pay upwards of $250 per month for a 10-member team.   

    • Tableau   

    Tableau comes with a user-based pricing model, with $70 per user per month. If you have a team of 10 members, you need to pay about $700 per month.   

    Total software cost: With a conservative medium price for both visualization software and ETL, your projected costs will stay around $2000 per month or $24,000 per year.   

    Bear in mind that this is an initial estimate. When beginning to start your own in-house data warehouse budget, pay attention to the following:   

    Your software prices certainly increase over time. Extended storage comes with extended ETL usage and higher storage access prices, boosting the cost of your data warehouse every month.   

    Pricing models are unpredictable, based on the size of your storage, the amount of data you put into your warehouse and the size of your team.   

    Explore Data Warehouse Tutorial

    Human Resource 

    For your database support team, you will need to have an enthusiastic Systems Manager, Backend Developer, and Software Engineer. These people will ensure that your data warehouse is operating seamlessly, and that all data is manageable and safe.   

    Human Resource Cost in Data Warehouse

    For the visualization team, you need to have at least one Data Analyst.   

    Here are some job descriptions and conservative cost predictions connected with staffing an entirely operational data warehouse. The salary ranges were measured using the average income of every respective position on payscale.com.   

    • Information system manager: An IS manager needs to supervise the team implementing your warehouse and keep all the systems in check. It’s estimated to pay about $7000-10,000 per month for a qualified IS manager.   
    • Backend developer: Backend developers are in charge of installing and maintaining all of your ETL software and ensuring that it is working properly with your storage service. It’s expected to pay about $6000-8000 for backend developers per month.   
    • Data architect (DBA): A DBA will decide the structural requirements of your data warehouse and suggest the best solution for merging all of your current data sources into it. It requires around $10,000-12,000 per month for a qualified DBA.   
    • Data analyst: Your data analyst will need to analyze and visualize your business intelligence in a way that generates meaningful insights. A data analyst will cost you about $5000-8000 every month.   

    An Estimated Cost For a Data Warehouse

    Having all of the necessary components to create your data warehouse, let’s see how much the total is. Suppose that you want to have a data warehouse that will require one terabyte of storage and 100,000 queries per month, your total annual cost for storage, software, and staff will stay around $468,000.   

    Estimated Costs For Data Warehouse
    Business man counting dollar banknote – online business concept

    Remember that this pricing ranges depending on each business, each industry, and each period. It’s impossible to estimate the exact cost of your data warehouse.   

    In case you do not exactly understand what is going on and how to choose the most suitable solution for your business, we got you covered! Synodus Data Analytics Consulting Services provides you with a wide range of expertise, technologies, and consultation. Our seasoned experts could lend you a hand and check-up to determine which way is the best data warehouse solution for your business.

    Closing Words

    The imprecise prediction of data warehouse costs can make your project end up with overspending and slipping behind schedule.   

    The cost components mentioned above can be your first step to prevent a negative outcome. For a more accurate estimation, you should consider many more aspects. If you’re not sure you get all the factors to predict your data warehouse project cost, Synodus’s data analysts can help you determine them and bring you an estimation. Let’s have a chat!   

    author avatar

    Taylor Nguyen

    I was born and grew up in Hanoi. I got 3 years of experience in Digital Marketing. To me, reading is food, and writing is a release of my energy. Thus, balance in the application of these is an important part of my life.

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