Cloud Data Analytics with Snowflake
“It is not enough to invest money in a new cloud-based infrastructure.”
As a specialist in cloud data analytics, Arjan van Staveren, Country Manager Germany at Snowflake, is familiar with the ideas that concern companies from all industries when making a possible switch to the cloud. He therefore sees the cloud as a huge opportunity and the right step towards digitization.
Arjan, what requirements must be met so that companies can benefit from the move into the cloud?
Data is the biggest asset that companies can dispose of today. And the good news is: While one crisis seems to replace the next, forecasts assume that the amount of data generated worldwide, and thus also the theoretical capital of companies, will double approximately every three years. In the present, however, they are still often prevented by antiquated processes and systems from developing the full potential of their collected data. To change this, it is not enough to invest money in a new, cloud-based infrastructure.
It must be started earlier.
That's right. For this investment to pay off sustainably, a comprehensive process is required that starts in the minds of the employees. Only when they are aware of the hidden benefits of the data they handle on a daily basis can they help to achieve real added value — and at the same time avoid creating new silos. Ultimately, everyone must pull together so that information not only becomes accessible, but also remains so. And this requires not only technological but also an appropriate cultural basis, which should be laid from the outset through clear guidelines and training courses.
The use of cloud analytics is by no means a matter of course in all companies. Why is that so?
According to surveys, the majority of German companies agree that the future lies in the cloud. However, the number of people who are already fully using the possibilities of the cloud is still quite manageable. The problem: Many IT decision makers still have major security concerns if the data is no longer to be stored on internal servers within the company, but on externally maintained servers. But this is precisely where the decisive advantage lies, and is still often overlooked. In fact, many IT departments simply cannot keep up with adequately protecting the sensitive infrastructure.
Therefore, there is primarily a lack of human resources.
Companies not only lack specialists who are familiar with this area. New potential threats are also constantly being added. Staying up to date here requires a lot of time and appropriate training. If a cloud-based solution is used instead, the responsibility lies in the hands of external providers. Compared to internal IT teams, they have enough resources to always ensure data security. This means that what is often assumed to be the cloud's biggest weakness is actually one of its biggest strengths.
Based on your experience, are there certain industries or companies that are lagging behind digitization?
There are certainly some industries that are generally more skeptical about implementing new technologies. These include, for example, banks, public authorities and even the healthcare sector. The reason for this is obvious, because compared to other industries, they handle extremely sensitive data, which is why they are logically forced to meet even higher security standards. Many traditional companies find it just as difficult to take the step of digital transformation. While companies such as Meta or Google have already been born into the digital age and many start-ups are also making use of the numerous advantages of modern technologies, companies that have been around for many decades have a much harder time. Detaching yourself from the shackles of the systems you have used so far is a huge effort — but it is one that will pay off in the long term.
A good example of this is the Swedish company SKF.
The industrial group SKF was founded in 1907, i.e. over a hundred years ago. Had SKF not decided to use Snowflake's Data Cloud to lay a modern foundation for scalable and automated analysis of data, there would be a high risk of losing touch with the competition in the near future. However, SKF identified this risk in good time. Thanks to the final, cloud-based sales controlling, around 150 employees can now manage analyses and reports centrally and fully automatically.
What makes Snowflake Cloud Data Warehouse stand out?
It's like this: A cloud solution is usually not enough to meet all of a company's needs. On the one hand, the data cloud is needed to be able to collect, process and make data available for use, on the other hand, one or even several applications are required to evaluate the existing data and generate practical added value. Snowflake's data cloud is therefore not just a normal cloud. It works like an overarching interface. This gives companies the opportunity to build a bridge between their data and applications, which allows them to flexibly benefit from the advantages of individual solution providers. This means that Snowflake makes the theoretical potential of the cloud practical in a simple and scalable way.
Honestly, are there no downsides at all when companies move from on-premise solutions to the cloud?
The cloud can even have a number of disadvantages. However, these mainly arise when they are not used correctly. It is not uncommon for companies to fail due to migration, which means that they simply move their historically grown data silos to the cloud. However, this does not guarantee better accessibility or higher data quality. In order to benefit from the benefits of the cloud, a holistic change must be made.
What advice do you give companies that want to rely on cloud analytics but don't know where to start or which provider to choose?
The most important thing is to choose a solution that meets the needs of the company not only today. It should be as scalable as possible so that it can continue to grow flexibly in the future. The market is turning faster from year to year, and unexpected disruptions are making things worse. For this reason, companies that are already thinking about tomorrow will have the longer lever in the future and will not have to constantly look for new solutions in order to be able to adapt to changing conditions.
Is Snowflake's Data Cloud also suitable for getting started with the cloud?
The good news is that Snowflake's data cloud can provide companies with the flexibility and scalability they need today and in the future. Both during this ongoing process and when getting started, there is the option of using Snowflakes Professional Services. This is particularly worthwhile for companies that feel a certain amount of uncertainty, do not know where to start or are perhaps looking for inspiration on how they can actually benefit from the data cloud with their business model.
It sounds simple. Thank you Arjan!
