Snowflake Enterprise Mannequin – How Snowflake Makes Cash?

The Snowflake enterprise mannequin revolves round a consumption-based pricing infrastructure complemented by its skilled companies. This versatile usage-based pricing technique permits clients to pay for less than what they use. This enterprise mannequin has taken the cloud-based information warehousing {industry} by storm with its revolutionary strategy.

Snowflake is a SaaS cloud computing-based information firm that provides information storage, processing, and analytic options which are faster, extra user-friendly, and much more versatile than conventional choices. 

Snowflake’s revolutionary strategy to cloud computing has remodeled the way in which during which organizations retailer, entry, and analyze information. Its versatile and scalable infrastructure  separates computation and storage, permitting companies to develop every element as wanted. This mannequin, in flip, leads to higher efficiency, improved scalability, and decrease prices, putting them forward of the competitors and making them a really enticing possibility for companies of all sizes.

A quick historical past of Snowflake

In 2012, three consultants in San Mateo, California; Benoît Dageville, Thierry Cruanes, and Marcin Żukowski; with a background in Oracle and large-scale information warehousing options, got here collectively to create what’s in the present day often known as Snowflake. The trio selected the title “snowflake” due to their immense love for snow sports activities and the distinctiveness that may be seen in every snowflake. This mirrored their firm’s imaginative and prescient: to supply a novel and tailor-made strategy to information administration for its customers. 

In 2014, Snowflake formally got here out of stealth mode and introduced the provision of its companies, permitting clients to retailer, entry, and analyze giant quantities of knowledge in actual time. 

In 2015, the corporate raised $45 million and launched its first product to the general public, the cloud information warehouse. And in 2016, they launched a novel pricing mannequin that permits clients to pay for less than the quantity of knowledge they use, as an alternative of the normal mounted subscription cost. 

After which, in 2019, they partnered with Microsoft Azure making it potential for purchasers to make use of Snowflake’s cloud information warehousing service on Microsoft’s cloud platform. 

In 2020, Snowflake had a market valuation of over $70 billion, making it one of many greatest software program IPOs in historical past. As well as, the corporate’s inventory value doubled on its first day of buying and selling, making it essentially the most outstanding software program IPO when it comes to first-day features. As well as, the enterprise introduced a partnership with Salesforce that might allow customers to make use of Snowflake’s cloud information warehouse service on Salesforce’s cloud platform, just like what they did for Microsoft.

In 2021, Snowflake signed a partnership with Google Cloud, repeating the circuit. The corporate additionally unveiled new options and capabilities, together with Snowpark, which permits builders to construct distinctive information apps on the Snowflake platform, and Snowsight, a brand new information visualization device.

Who Owns Snowflake

Snowflake was based in 2012 by Benoit Dageville, Thierry Cruanes, and Marcin Zukowski. 

Snowflake is a publicly-traded firm owned by institutional and retail buyers. 

As of 2021, the most important shareholder in Snowflake is Sutter Hill Ventures, a enterprise capital agency that has invested over $1 billion within the firm and has been concerned with Snowflake since its early days. Different important shareholders embrace Sequoia Capital, Altimeter Capital, and ICONIQ Capital. The corporate can be listed on the New York Inventory Alternate below the ticker image SNOW.

Snowflake Mission Assertion

The Snowflake mission assertion is “to allow each group to be data-driven. Our cloud-built information warehouse makes that potential by delivering prompt elasticity, safe information sharing, and per-second pricing throughout a number of clouds.” 

How Snowflake works

Snowflake is a cloud-based information warehousing expertise that permits enterprises to retailer, handle, and analyze huge quantities of knowledge in a extremely scalable and versatile approach. The platform is designed to work easily with cloud-based infrastructure suppliers comparable to Amazon Net Providers (AWS) and Microsoft Azure, permitting customers to learn from their scalability and reliability. 

The corporate shops information in a distributed columnar database for cloud storage and processing. The platform relies on a multi-cluster, shared-data structure that allows quite a few clients to entry the identical infrastructure whereas sustaining information isolation and safety.

When clients use Snowflake, they usually begin by creating a number of digital warehouses.  Every warehouse is a cluster of computing sources allotted to a single buyer. The person can then enter information into Snowflake utilizing varied methods, comparable to bulk loading, streaming, and information replication.

After the information is loaded, clients can use Snowflake’s SQL-based question engine to run analytical queries towards the information. Snowflake’s question engine is optimized for cloud-based processing and may use the distributed columnar database structure to supply excessive efficiency and scalability.

How Snowflake makes cash

Cloud Information Platform Subscription

Snowflake’s major income supply is its cloud information platform subscription. The subscription-based mannequin permits clients to pay for information storage, processing energy, computing, and information switch charges. The charges are primarily based on the platform’s utilization, measured in credit.

Skilled Providers

Snowflake additionally generates income via skilled companies. The corporate expenses clients for skilled companies, comparable to coaching and consulting, to its clients. 


The Snowflake Market is a platform the place clients can discover and buy third-party information and purposes. {The marketplace} gives clients with a variety of knowledge and instruments that can be utilized to construct their information options. Snowflake generates income by charging a fee on the gross sales made via its market.


Snowpark is a function that allows builders to jot down customized code in Java or Scala to question, rework and analyze information inside Snowflake. As well as, this paid add-on function permits clients to make use of their very own customized code in Snowflake.


Snowflake additionally generates income via its partnerships. The corporate companions with varied software program distributors and system integrators to supply its clients built-in options and expenses a fee on the gross sales generated via its companion community.

Snowflake Enterprise Mannequin Canvas

The Snowflake Enterprise Mannequin might be defined within the following enterprise mannequin canvas:

Snowflake Buyer Segments

Snowflake buyer segments include:

  • Firms: Snowflake’s major buyer section is giant, mid-market, and small companies requiring a extremely scalable, highly effective, and safe information warehouse answer to handle and analyze huge quantities of knowledge;
  • Authorities organizations: Snowflake additionally gives companies to organizations just like the U.S. Division of Protection and the U.S. Census Bureau;
  • Non-profit organizations: Snowflake additionally serves non-profit organizations that require an information warehouse answer for managing and analyzing their information.

Snowflake Worth Propositions

Snowflake worth propositions include:

  • Offering a extremely performant information warehouse answer that may rapidly course of giant quantities of knowledge. Snowflake’s information warehouse answer is designed with a novel structure that separates storage from computing. This separation permits for massively parallel processing over numerous digital compute situations, enabling Snowflake to course of giant quantities of knowledge at excessive speeds.

Additionally, It makes use of a way referred to as question optimization to quicken question efficiency. This requires analyzing every question and robotically producing an execution plan that makes the perfect use of the obtainable sources. This permits quick question execution occasions, even when working with complicated questions and enormous datasets.

General, Snowflake’s construction is designed to scale with the shoppers’ wants, making certain that their workloads are at all times working easily.

  • Providing an elastic information warehouse that may scale up or down to fulfill the shoppers’ altering wants. Snowflake’s versatile information warehouse is designed to deal with information workloads of any measurement or complexity. Contemplating its cloud-native structure and built-in auto-scaling capabilities, Snowflake can robotically and dynamically alter the variety of computing sources required for dealing with a given workload primarily based on the quantity of knowledge being processed, the variety of concurrent customers, and different elements.

This additionally ensures that the shoppers pay just for what they use, fairly than having to pay for mounted capability that will go underutilized or be inadequate throughout peak durations.

  • Versatile information warehouse answer that may work with varied information varieties and sources. Snowflake’s flexibility refers to its skill to deal with a number of information varieties and sources, comparable to structured, semi-structured, and unstructured information, together with CSV, JSON, Avro, Parquet, and extra. It may possibly deal with each batch and streaming information and is appropriate with a number of programming languages, together with Python, R, and Java.

It may possibly additionally combine with different instruments and platforms, together with Informatica, Talend, and Matillion, permitting clients to construct personalized information pipelines that match their wants.

  • Extremely safe information warehouse answer that meets the very best safety and compliance requirements. Snowflake gives end-to-end encryption for all information in transit, and at relaxation, together with backups and metadata; its entry management insurance policies are primarily based on roles, and it’s compliant with varied {industry} requirements and rules, comparable to (SOC 2, HIPAA, and GDPR), it additionally gives detailed auditing and monitoring capabilities. With all these options, Snowflake ensures that buyer information is at all times protected and meets the very best safety and regulatory compliance requirements.

Snowflake Channels

Snowflake’s channels include the next:

  • Direct Gross sales: Snowflake’s direct gross sales staff sells its information warehousing options on to clients;
  • Partnerships: Snowflake companions with varied expertise firms, together with cloud suppliers, software program distributors, and system integrators;
  • On-line: Snowflake gives a platform the place clients can join its information warehousing companies, entry sources, and handle their accounts.

Snowflake Buyer Relationships

Snowflake’s buyer relationships include the next:

  • Personalised Assist: Snowflake gives personalized assist to clients, serving to them with every part from preliminary onboarding to ongoing upkeep and troubleshooting. This consists of devoted account managers, buyer success groups, and technical assist;
  • Neighborhood: Snowflake has an lively neighborhood of customers who share data, finest practices, and options to frequent issues. This neighborhood helps to foster buyer relationships by enabling clients to study from one another, share experiences, and work collectively to unravel challenges;
  • Buyer Suggestions: Snowflake values buyer suggestions and makes use of it to enhance its services and products regularly. The corporate usually surveys clients to grasp their wants, challenges, and ache factors and incorporates this suggestions into its product roadmap.

Snowflake Income Streams

Snowflake’s income streams include:

  • Cloud Information Platform Subscription
  • Skilled Providers
  • Market
  • Snowpark
  • Partnerships

Snowflake Key Assets

Snowflake’s key sources include the next: 

  • Cloud Infrastructure: Snowflake leverages cloud infrastructure offered by Amazon Net Providers (AWS), Microsoft Azure, and Google Cloud Platform (GCP) to ship its information warehousing companies;
  • Information Warehousing Know-how: Snowflake’s proprietary expertise is an important useful resource for the corporate. The expertise permits the corporate to separate storage and computing, offering a scalable, versatile, and environment friendly information warehousing service;
  • Mental Property: Snowflake’s mental property, together with patents, logos, and copyrights, is a helpful useful resource for the corporate as It helps the corporate defend its expertise and stop opponents from copying its companies;
  • Expertise: Snowflake’s staff of skilled information warehousing and cloud computing consultants is one other essential useful resource for the corporate. The group consists of software program engineers, information scientists, and cloud infrastructure consultants with deep {industry} data;
  • Partnerships: Snowflake has partnered with main cloud suppliers, expertise distributors, and consulting companies to develop its attain and supply further companies to its clients. These partnerships are an important useful resource for the corporate when it comes to driving buyer acquisition and income progress.

Snowflake Key Actions

Snowflake’s key actions include the next:

  • Information processing and administration: Snowflake presents a cloud-based information warehouse expertise that allows clients to securely and scalably retailer and handle monumental quantities of knowledge;
  • Innovation: The corporate invests closely in analysis and improvement to constantly enhance its platform and companies;
  • Partnerships and collaborations: Snowflake collaborates with a number of companions and expertise firms to combine and increase its platform with new options and capabilities;
  • Advertising and marketing and gross sales: The corporate markets its companies to potential clients and works to shut offers to generate income;
  • Buyer assist and help:  Snowflake gives buyer assist to make sure clients have a seamless expertise with its platform and companies.

Snowflake Key Companions

Snowflake’s key companions include: 

  • Cloud suppliers: Snowflake works with main cloud suppliers comparable to Amazon Net Providers, Microsoft Azure, and Google Cloud Platform to host and function its platform;
  • Know-how companions: The corporate companions with a variety of expertise suppliers to reinforce its platform and companies, together with firms like Tableau, Looker, and Databricks;
  • Consulting companies: Snowflake collaborates with consulting companies to assist shoppers combine and implement its platform and companies;
  • Worth-added resellers: The corporate companions with value-added resellers to distribute and promote its companies to a broader vary of consumers;
  • System integrators: Snowflake companions with system integrators to supply end-to-end information administration and analytics options.

Snowflake Value Construction

Snowflake’s value construction consists of:

  • Storage prices: Snowflake expenses clients for the quantity of knowledge saved in its cloud-based information warehouse. Storage pricing varies relying on the area, with costs usually starting from $23 to $40 per terabyte per 30 days;
  • Compute prices: The corporate additionally expenses clients for the quantity of processing energy used to research information. Compute pricing additionally varies relying on the efficiency stage, with costs starting from $0.00056 to $1.50 per credit score per hour;
  • Information switch prices: Clients are charged by Snowflake for information transported out and in of its warehouse. Costs for information switch vary from $0.04 to $0.16 per gigabyte, relying on the area and the quantity of knowledge transmitted;
  • Assist prices: Clients can choose from varied service plans, every tailor-made to their particular necessities, offered by Snowflake. Completely different assist tiers can be found, from primary to premium, together with round the clock entry to technical specialists. Plans for technical help start at $5,000 yearly;
  • Skilled companies prices: Snowflake presents skilled companies to assist clients combine and optimize their information warehouse. Costs for skilled companies differ relying on the scope of the challenge.

Snowflake Opponents

  • Amazon Net Providers (AWS) Redshift: Launched in 2012, Redshift is a cloud-based information warehousing answer that allows clients to research giant information units rapidly. It presents seamless integration with different AWS companies and helps SQL-based queries;
  • Google BigQuery: Launched in 2010, BigQuery is a completely managed, cloud-native information warehouse that gives quick and cost-effective evaluation of huge datasets. It’s designed to deal with the calls for of companies of all sizes, and its integration with the Google Cloud Platform makes it straightforward to make use of alongside different instruments and companies;
  • Microsoft Azure Synapse Analytics: Previously often known as Azure SQL Information Warehouse, Synapse Analytics is a cloud-based analytics service that gives enterprises with the flexibility to retailer and analyze giant quantities of structured and unstructured information;
  • Oracle Autonomous Information Warehouse: It’s a cloud-based answer that automates lots of the duties related to information warehousing, together with safety, backup, and efficiency tuning;
  • Teradata Vantage: Based in 1979 in California, United States. It’s an analytics platform that gives clients with a variety of instruments and capabilities to retailer, course of, and analyze giant information units;
  • IBM Cloud Pak for Information: Launched on April 7, 2011. IBM Cloud Pak for Information is an end-to-end information and AI platform that allows companies to gather, analyze, and handle information throughout a number of clouds and on-premise environments.

Regardless of the competitors, Snowflake has differentiated itself by providing a novel cloud-based information warehousing and analytics platform designed for simplicity, velocity, and efficiency.

Snowflake SWOT Evaluation

Beneath, there’s a detailed swot evaluation of Snowflake:

Snowflake Strengths

  • Superior expertise: This gives the corporate with a notable benefit within the cloud-based information warehousing {industry}. Its high-performance capabilities, strong safety features, and ease of use make it a go-to possibility for purchasers craving for a complete and highly effective information warehousing answer;
  • Partnership: By collaborating with cloud suppliers like Amazon Net Providers (AWS), Microsoft Azure, and Google Cloud Platform (GCP), Snowflake can supply its clients straightforward integration with their current cloud infrastructure. By these partnerships and Snowflake’s integration with the cloud suppliers’ infrastructure, clients can simply entry Snowflake’s companies with out having to undergo complicated setup and set up processes;
  • Market place: Snowflake enjoys a robust market place and model recognition. In reality, it’s presently ranked first in Forbes Cloud 100, an inventory of the highest 100 non-public cloud firms on the earth. This rating is a testomony to the corporate’s revolutionary strategy and the worth it gives to its clients. Its rising buyer base additionally serves as a validation of Snowflake’s skill to supply a complete and streamlined answer for managing information that entice new clients who’re in search of a extra environment friendly and scalable answer to their data-related wants;
  • Various Know-how Ecosystem: Snowflake advantages from a big, various ecosystem of expertise companions, which is a wonderful benefit for the corporate and its clients. By collaborating with different expertise suppliers, it will probably develop its choices and supply a extra complete answer to its clients.

Companions on this ecosystem vary from cloud service suppliers to information integration specialists to suppliers of Enterprise Intelligence and analytics instruments. These firms present integrations and companies that improve Snowflake’s providing and profit the corporate’s clientele.

Snowflake Weaknesses

  • Pricing: One of many fundamental drawbacks of Snowflake’s enterprise mannequin is its excessive pricing. The corporate’s pricing mannequin relies on a consumption-based subscription mannequin, which expenses clients primarily based on what they do on Snowflake. Whereas this pricing mannequin might be enticing to bigger enterprises with excessive information processing wants, it may be much less accessible for smaller firms and startups with restricted budgets.

Snowflake’s pricing is mostly greater than its opponents within the cloud-based information warehousing {industry}, making it much less accessible for smaller firms and startups.

  • Cloud Dependency Dangers: As a completely managed SaaS platform, Snowflake depends on cloud infrastructure suppliers comparable to Amazon Net Providers (AWS), Microsoft Azure, and Google Cloud Platform (GCP) to host and ship its companies. Whereas this permits Snowflake to learn from the scalability and reliability of those cloud suppliers, it additionally signifies that the corporate depends on them for its operations. And this dependency on cloud infrastructure suppliers can restrict Snowflake’s management over its platform and doubtlessly enhance its prices. 
  • Localization: One other potential limitation of Snowflake’s enterprise mannequin is its restricted geographic attain. Presently, Snowflake is primarily targeted on serving clients in North America and Europe, and this will restrict its progress potential in different areas.

Whereas Snowflake has a rising buyer base in these areas, it has a restricted presence in different markets, which may make it tough to develop its buyer base and compete with different cloud-based information warehousing suppliers which have a extra international presence. 

Snowflake Alternatives

  • Analytics: The demand for data-driven insights and analytics has been rising quickly lately, fueled by the proliferation of knowledge and the elevated significance of constructing data-driven selections in enterprise. This pattern has created a big potential marketplace for Snowflake, which presents cloud-based information warehousing options.

Snowflake’s platform is well-suited to fulfill this rising demand for analytics. Its superior expertise and distinctive structure permit organizations to simply retailer, handle and analyze giant volumes of knowledge whereas additionally offering the scalability, efficiency, and safety required to assist mission-critical analytics purposes.

  • Growth: Growth into new industries and markets, together with rising expertise fields comparable to AI and ML (synthetic intelligence and machine studying), represents a necessary alternative for Snowflake to proceed its progress trajectory to fulfill the evolving wants of its clientele. Sustaining its place as a market chief in cloud-based information warehousing will probably be potential. It should gas additional enlargement within the coming years if the corporate retains pushing the boundaries of innovation and growing new options to fulfill the complicated information necessities of varied industries.
  • Progress: Continued improvement and enchancment of expertise and structure, coupled with sturdy partnerships and a concentrate on assembly the evolving wants of its clients, are key elements driving Snowflake’s progress and success. Because the demand for data-driven insights and analytics continues to develop, Snowflake’s skill to innovate and supply versatile, high-performance information warehousing options will probably be vital to its ongoing success within the years forward.

Snowflake Threats

  • Competitors: Snowflake faces intense rivalry from varied gamers out there. These opponents are suppliers that additionally supply information warehousing and analytics companies that can be utilized at the side of their different cloud companies to supply clients a extra all-encompassing cloud answer.

Snowflake additionally battles with rising information analytics and warehousing startups that wish to change the market. These startups supply revolutionary approaches to information administration and analytics, generally at a cheaper price level, which might entice clients who’re in search of cost-effective options.

  • Volatility: Like every other enterprise, Snowflake is susceptible to financial downturns and shifts in expertise tendencies that may have an effect on its demand and market progress. In occasions of financial uncertainty or recession, firms might in the reduction of on their IT spending, together with cloud-based information warehousing and analytics companies. Additionally, the speedy tempo of technological innovation could cause market disruption and adjustments in buyer demand.
  • Laws: Any safety breach or information leak can considerably harm Snowflake’s popularity and buyer belief, resulting in monetary losses and authorized liabilities.

Furthermore, Snowflake should adjust to varied rules associated to information privateness and safety, comparable to GDPR in Europe and CCPA in California. Failure to adjust to these rules can lead to hefty fines and authorized penalties, additional harming its popularity and monetary efficiency.


In conclusion, since its founding in 2012, Snowflake has been a dominant innovation within the information warehousing market. The corporate’s enterprise mannequin differentiates it from extra conventional information warehousing companies. Snowflake’s skill to draw a variety of consumers, from solo entrepreneurs to multinational companies, immediately outcomes from its concentrate on its clients and their wants.

Whereas cloud-based information warehousing accounts for many of Snowflake’s income, the corporate additionally advantages from promoting skilled companies and a market. Snowflakes’ Most worthy belongings are the cloud infrastructure, cutting-edge information warehousing applied sciences, and gifted employees. Additionally, the corporate has fashioned important partnerships with industry-leading cloud companies like AWS and Azure.

Snowflake’s distinctive enterprise mannequin, revolutionary expertise, and customer-focused strategy have made it a big participant within the information warehousing {industry}. Because the demand for superior information administration options grows, Snowflake is well-positioned to capitalize on this pattern and drive innovation.

Supply hyperlink

Leave a Reply

Your email address will not be published.