Posted by Saqib Mustafa
Apr 13, 2016

Legacy Problems

Organizations with legacy on-premise data warehouses spend a lot of time and money managing their environments and keeping up with business demands. Because of the size of the investments, organizations often run their data warehouses close to full utilization. While this may meet their current needs, the inherent lack of scalability could mean compromises on performance or failure to meet SLAs when more workloads, data sources and users need to be added.  Then the journey begins to add more capacity.  Organizations often need to acquire specialized resources, or become reliant on legacy vendors to manage and maintain the environment. All of this means that if there is a spike in demand for the environment, these organizations cannot accommodate the growth without impacting performance or must absorb additional costs for a greater footprint that waits unused until needed for that brief spike in the future.

Dealing with Growth

With performance concerns come the typical headaches of any data warehouse environment. These include, but are not limited to growing the environment, finding qualified resources for  performance tuning, optimizing queries, and dealing with concurrency and user growth. On the other hand businesses are facing stiffer competition, and end users are clamoring for faster answers to their business questions. In the past, data warehousing was limited to a set of users typically in marketing or finance. Now even field sales reps want access to up-to-date data, creating more load on the data warehouse. Plus the more data you have, the more important security becomes and the cost for performance increases. So now organizations are not only keeping the lights on, but also increasing spending to get performance, and securing the environment. In short, data warehouses have become more difficult to maintain and run!

An example of an organization facing this challenge of scalability is CapSpecialty, a leading provider of specialty insurance for small to mid-sized businesses. CapSpecialty used a legacy data warehouse to support analytics needed by their actuarial users to understand how to price and package products in various geographies. With the increased demand for access to this data, this legacy environment required a significant upgrade. Performance impacts led to users having to start their queries before leaving the office for the weekend, hoping they would be completed when they returned to work on Monday. The legacy environment also limited their ability to report on important KPIs that were critical to running the business in a timely manner. As with any financial organization, the environment also needed to provide a very secure environment to store the crown jewels: customers’ risk profile and related financial data.Unfortunately, upgrading their environment to meet this increased demand was going to cost them $500K just for licensing, and that would only give them a 2X increase in performance. This does not even include the costs for deployment, management and hosting for the new environment.

Making Data Warehousing Easy

The need for a scalable, more cost effective solution led them to Snowflake. After evaluating a number of data warehouse options,CapSpecialty decided to implement the Snowflake cloud-based Elastic Data Warehouse. Besides offering an attractive cost structure, Snowflake’s true cloud solution delivered ease of migration and scalability. With Snowflake, CapSpecialty was up and running in less than a week. In addition to achieving an increase of 200x query performance, they leveraged existing infrastructure and were set up to scale for future growth. Snowflake also provided end to end enterprise level security to protect their sensitive financial data in the cloud.

CapSpecialty underwriters are now able to analyze 10 years’ worth of governed data in 15 minutes. The stage has also been set for CapSpecialty executives to view dashboards that display real-time profitability and KPIs. Using Snowflake, CapSpecialty can also bring semi-structured data to the environment, and serve the analytics to their field agents to effectively market their products in various geographies.

To learn the details of how Snowflake made data warehousing easy for CapSpecialty, we encourage you to read more in the case study. You can also attend the our webinar  on April 27th, 2016, 10:00 AM-PST/1:00 PM-EST, to find out how Snowflake and Microstrategy enable CapSpecialty analysts to understand data in real time.