CIOs are increasingly turning to IT professionals to deliver robust data platforms that support machine learning and data-driven innovation and continue to accommodate traditional business intelligence tools and data reporting. Successful organizations rely on the strengths of modern data warehouses like AWS Redshift and Azure Synapse to achieve these goals. These platforms enable businesses to gather, manage, and analyze vast data for strategic decisions. The Redshift data warehouse and Synapse data warehouse serve as centralized repositories where organizations can ensure data integrity by eliminating outliers and user errors, allowing for accurate, data-driven decision-making that fosters growth, innovation, and the development of new features.
As digital transformation initiatives take center stage, an optimized AWS data warehouse or Synapse data warehouse becomes paramount. These platforms, such as Amazon Redshift and Azure Synapse Analytics, provide the insights and intelligence that can lead to competitive advantages and uncover new business opportunities. However, selecting the right data warehouse vendor between AWS Redshift and Azure Synapse requires deep technical expertise and thorough research. Our Veritis team, with extensive experience in cloud solutions, is dedicated to helping you make the right choice for your business. Whether you’re exploring what is AWS Redshift or what is Azure Synapse, we provide the guidance needed to navigate the complex landscape of modern data warehousing solutions.
What is a Data Warehouse?
A data warehouse (DWH) is a central repository of information that can be extracted from operational and external data sources to produce business insights. It is typically used for data analysis, reporting, and business intelligence (BI). Data stored in the DWH differs entirely from data discovered in the operational environment.
DWH makes it easy to quickly analyze business data extracted from operational systems such as inventory management, point-of-sale, and marketing databases. Information gathered from transactional databases is hard enough to generate the data directly as it can be gathered through the data warehouse. For instance, an organization wants to know the total revenue each salesperson produces for each product every month. Transactional databases may not generate this data, but the DWH can produce it.
Useful Link: What is Generative AI: An Ultimate Guide to Amazon Generative AI Tools
Amazon Redshift – Cloud Data Warehouses
Amazon Redshift is a data warehouse solution that enables business intelligence in the AWS cloud. It allows customers to query petabytes of semi-structured and structured data using standard SQL queries. Redshift is used for analysis and large-scale data storage and frequently allows the performance of large-scale database migrations.
Users can start small without commitments and scale up to petabytes or more. Redshift allows them to operate their data to obtain new insights for their customers and businesses. It is a fully managed solution that automates the most common administrative tasks associated with security, configuration, monitoring, provisioning, and maintaining backups.
The Amazon Redshift data warehouse comprises computing resources called cluster nodes. Each cluster uses its Redshift engine with at least one database and performs data analytics queries. Nodes can be deactivated and activated based on requirements so enterprises can use gigabyte- to petabyte-level storage in minutes.
Amazon Redshift stores data securely, offering companies insights into nearly every aspect of their enterprise, from sales and marketing to website performance. AWS claims that Amazon Redshift is the world’s fastest cloud data warehouse service and has three times better price performance than other vendors.
Price
Amazon Redshift data warehouse is a cost-effective solution that requires you to pay only for your consumption. AWS charges USD 0.25 with no upfront or commitment costs, and users can scale up to USD 250 per terabyte per year.
The cost of Amazon Redshift varies from region to region. To put it in perspective, the cost in the US East (Ohio) would be.
Details | Memory | Addressable Storge Capacity | vCPU | I/O | Cost |
RA3 along with Redshift storage | |||||
ra3.xlplus | 32 GiB | 32TB RMS | 4 | 0.65 GB/s | USD 1.086/hour |
ra3.4xlarge | 96 GiB | 128 TB RMS | 12 | 2.00 GB/s | USD 3.26/hour |
ra3.16xlarge | 384 GiB | 128 TB RMS | 48 | 8.00 GB/s | USD 13.04/hour |
Dense Compute | |||||
dc2.large | 15 GiB | 0.16TB SSD | 2 | 0.60 GB/s | USD 0.25/hour |
dc2.8xlarge | 244 GiB | 2.56TB SSD | 32 | 7.50 GB/s | USD 4.80/hour |
Useful Link: AWS vs Azure vs GCP: Cloud Cost Comparison
Azure Synapse Analytics – Cloud Data Warehouses
Azure Synapse Analytics is an unlimited information analysis service that combines the capabilities of enterprise data warehousing, big data analytics, ETL pipelines, analytics tools and services, visualization and dashboards, and data integration. It allows you to query data according to your requirements using either provisioned resources or serverless at scale.
Azure Synapse permits a single service for all workloads when managing, serving, and processing data for data protection and immediate business intelligence requirements. Features like data pipelines (powered by Azure data factory), data flow creation, data ingestion, data exploration, and data visualization are available in a single place. In addition, performance optimization and workload monitoring are part of the package.
Apache Spark pools are also available in Azure Synapse. This tool is one of the favorite tools for data scientists and engineers, thanks to handling machine learning capabilities and extensive data.
The design and architecture of the Azure Synapse data warehouse depend on multiple factors. A well-performing data warehouse should guarantee low latency, concurrency, data availability, and the ability to incorporate with other systems.
Price
In terms of pricing, Azure Synapse offers a pay-as-you-go model. You pay only what you consume for the services. However, prices can be higher than in the pre-purchasing model. Currently, it offers two versions – Azure Synapse Analytics, which allows only data warehousing, and the next one is the new Azure Synapse Analytics pre-purchase plan.
In the current market, the pricing models for serverless and dedicated consumption are
Dedicated
The cost of a dedicated version varies from region to region. To put it in perspective, the cost in the central US would be as follows:
DWU | Service Level | 1 year reserved | 3 years reserved | Pay as you go |
100 | DW100c | USD 0.9513/hour | USD 0.5285/hour | USD 1.51/hour |
500 | DW500c | USD 4.7563/hour | USD 2.6425/hour | USD 7.55/hour |
1000 | DW1000c | USD 9.5126/hour | USD 5.285/hour | USD 15.10/hour |
2000 | DW 2000c | USD 19.0252/hour | USD 10.57/hour | USD 30.20/hour |
2500 | DW2500c | USD 23.7815/hour | USD 13.2125/hour | USD 37.75/hour |
5000 | DW5000c | USD 47.563/hour | USD 26.425/hour | USD 75.50/hour |
7500 | DW7500c | USD 71.3445/hour | USD 39.6375/hour | USD 113.25/hour |
10000 | DW10000c | USD 95.126/hour | USD 52.85/hour | USD 151/hour |
15000 | DW15000c | USD 142.689/hour | USD 79.275/hour | USD 226.50/hour |
30000 | DW30000c | USD 285.378/hour | USD 158.55/hour | USD 453/hour |
Useful Link: What are the Differences Between Amazon ECS vs EKS?
Serverless
Azure Synapse serverless costs USD 5.65 TB of data processed and offers 1 TB of free queries per month until the last day of the year. You must pay only for executed queries and data processed by each query.
Comparison Between Amazon Redshift and Azure Synapse Analytics
Details | Amazon Redshift | Azure Synapse Analytics |
Administration and Management | Amazon requires AWS expertise to select the correct instance size and scale nodes manually | Azure offers dedicated models and serverless |
Integrations Ecosystem | DMS, along with partners and data integration in the AWS marketplace | Azure data factory supports integration |
Ingestion of streaming data | It doesn’t provide the built-in capability for ingestion of data streams | Users can operate the Apache Spark streaming functionality to ingest streaming data |
Data backup and recovery | Available | Available |
Columnar Architecture | Yes | Yes |
Massively parallel processing (MPP) | Available | Available |
Database model | Relational DBMS | Relational DBMS |
DB engine rankings | Rank 31 Score 25.94 | Rank 36 Score 20.66 |
Initial Release | 2012 | 2016 |
Language implemented | C | C++ |
Supported programming languages | It supports all languages related to ODBC/JDBC | It supports Java, PHP, and C# |
Pricing | Amazon Redshift on-demand price related to on-cluster configuration. Users can buy reserved nodes at discount | Azure Synapse Analytics on-demand price related to pre-purchase reserved storage at discount |
Useful Link: Serverless Vs Containers: Comparison Between 2 Cloud Services
Key Features of Amazon Redshift and Azure Synapse Analytics
1) Data Processing Capabilities
- Amazon Redshift offers high-performance data processing capabilities, enabling businesses to perform complex queries on vast datasets seamlessly. The Redshift data warehouse is built for fast querying and real-time analytics, making it the ideal solution for companies requiring rapid insights.
- Azure Synapse Analytics delivers flexible data processing options, including serverless on-demand queries and provisioned resources. The synapse data warehouse is versatile, supporting various workloads, from big data analytics to machine learning, allowing businesses to scale as needed.
2) Ease of Setup and Maintenance
- With Amazon Redshift, users benefit from a straightforward setup process and automated maintenance features. The AWS Redshift environment is designed to minimize manual intervention, ensuring that backup, recovery, and scaling are automated to handle growing business demands.
- Azure Synapse provides a unified platform that integrates data warehousing, big data analytics, and integration services. While it offers more customization than the AWS data warehouse, it requires more profound integration knowledge, especially when utilizing Azure Data Factory vs Synapse for data movement and transformation.
3) Data Integration and Compatibility
- Amazon Redshift data warehouse integrates flawlessly with AWS services, making it a choice for companies already utilizing the AWS data warehouse. It supports SQL-based queries and is compatible with traditional databases, easing the transition for users familiar with SQL.
- Azure Synapse offers seamless integration with Microsoft’s tools, such as Power BI and Azure Machine Learning, making the Synapse data warehouse an excellent option for companies already in the Microsoft ecosystem. The flexibility in data processing also supports the increasing need for sophisticated analytics and business intelligence.
4) Analytics and Business Intelligence
- Amazon Redshift is known for its vital business intelligence (BI) tools and high-performance analytics capabilities. Its MPP (Massively Parallel Processing) architecture ensures efficient data processing, providing timely insights. Many enterprises leverage the AWS Redshift platform for its speed and ease of use in generating actionable business intelligence.
- Azure Synapse is a powerhouse for real-time analytics, combining Apache Spark, SQL pools, and machine learning capabilities in one platform. It’s not just about what Azure Synapse is but also how it transforms complex data into powerful insights with robust BI and visualization tools like Power BI.
5) Cost-effectiveness
- AWS Redshift pricing offers cost-effective solutions for firms with a pay-as-you-go model that adapts to your consumption needs. Amazon Redshift data warehouse users can scale their data capacities without committing to high upfront costs, making the AWS Redshift pricing model ideal for businesses aiming for cost efficiency.
- Azure Synapse pricing follows a similar consumption-based model, offering flexibility with options for reserved instances for long-term cost savings. Organizations managing large-scale analytics often find Azure Synapse pricing to be competitive, particularly with the addition of serverless options.
At Veritis, we understand that choosing the right data warehouse solution—AWS Redshift or Azure Synapse—is crucial for your business. As a trusted IT partner, Veritis offers end-to-end cloud services, ensuring you select the right platform and implement and optimize it to achieve maximum business value. From AWS Redshift to Azure Synapse, we provide expert guidance and support, tailoring our solutions to your needs.
Veritis, a Stevie Award Winner, is a global leader in IT solutions, helping enterprises of all sizes, including Fortune 500 companies, navigate their digital transformation journey. We offer comprehensive, cost-effective, and efficient services to help you leverage the full potential of Amazon Redshift data warehouse and Synapse data warehouse technologies. Trust Veritis to help you unlock new opportunities and stay ahead in today’s data-driven world. Let Veritis be your partner in innovation and success!
In a Nutshell
Top MNC companies are running data warehouses, either cloud or on-premise, to gather valuable insights for business decisions. Most large enterprises operate hundreds of terabytes in data warehouses, while petabyte-sized data warehouses are rare, even in top multinational companies.
The two cloud providers have secured the top places in cloud computing, and they have cutthroat competition in the current market. Redshift and Azure Synapse Analytics are good enough for a business, depending on your specific requirements. They offer free trials to help you pick the right data warehouse vendor for your business.
Instead of choosing between Amazon Redshift and Azure Synapse, opt for a multi-data warehouse strategy, which offers numerous benefits for your business. However, adopting a multi-data warehouse strategy is laborious, so organizations seek Vertis’s services.
Veritis, the Golden Bridge and Stevie Awards Winner, is a next-generation global technology that helps companies reimagine their business and adapt them to the digital world. Veritis offers holistic services to small, medium, and large-scale enterprises, including Fortune 500 firms, with tailored, cost-effective, and efficient cloud solutions.
Explore Cloud Service and Solution Got Questions? Schedule Now
Additional Resources: