Maximizing Value, Minimizing Spend – Snowflake Cost Optimization

About the Client:

A top healthcare education management provider supporting universities and hospitals with services like admissions, clinical rotations, certification tracking, and performance analytics. Their data ecosystem spans LMS, SIS, clinical platforms, and assessment tools.

Challenge:

Rapid Snowflake adoption led to surging cloud costs that outpaced expected ROI. Key issues included:

  • Over-provisioned Warehouses: Running large warehouses for small tasks or during idle hours.
  • Low Cost Visibility: Difficulty attributing spend by team or use case.
  • Inefficient Queries: Suboptimal SQL consuming excess compute.
  • Storage Bloat: Redundant, outdated data with no clear retention rules.
  • No Cost Governance: Ad-hoc resource use without automated control.

Solution:

Phase 1: Cost Visibility & Usage Insights

  • Custom Dashboards: Built on ACCOUNT_USAGE to track compute/storage use by user, team, project.
  • Workload Analysis: Mined QUERY_HISTORY and WAREHOUSE_METERING_HISTORY for inefficiencies, peak loads, and idle time.

Phase 2: Compute Efficiency Optimization

  • Warehouse Rightsizing: Resized oversized warehouses (e.g., L → M/S) based on actual usage.
  • Auto-Suspend/Resume: Set idle timeouts (2–5 mins) to cut down compute waste.
  • Multi-Cluster Scaling: Tuned for high-concurrency scenarios like faculty reports and data loads.
  • Query Optimization Workshops: Trained users on clustering keys, materialized views, indexing.
  • Resource Monitors: Set credit limits and alerts at warehouse/department levels to control spend.
  • Query Tags for Usage Attribution: Leveraged query tags to categorize and analyze compute usage across ETL processes, reporting workloads, and individual users—enabling granular visibility into cost drivers.

Phase 3: Storage Optimization & Governance

  • Data Retention Policies: Automated archival/purging of stale data to trim storage.
  • Zero-Copy Cloning: Enabled test environments without duplicating data.
  • Compression & Table Tuning: Refined structures and leveraged Snowflake compression.

Cost Showback Model: Collaborated with finance and department heads to implement a cost showback model, attributing compute and storage usage to business units. We also developed a report that identifies key drivers behind monthly compute cost increases, helping teams take proactive cost-control actions.

Outcome:

  • Achieved 28% reduction in Snowflake costs within five months, unlocking budget for other educational priorities
  • Right-sized warehouses and enforced governance to minimize idle time and align compute with actual usage
  • Enhanced query performance, accelerating access to data for faculty, administrators, and analysts
  • Enabled granular cost visibility through dashboards and alerts for improved forecasting and budget control
  • Established a scalable, cost-aware Snowflake architecture to support long-term growth and compliance

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