When working with Snowflake, it’s crucial to consider not just the compute costs but also the data storage and data transfer expenses. These costs vary based on factors like your cloud provider and the region in which your account is hosted. In this article, I’ll break down Snowflake’s storage and transfer pricing models and provide some recommendations to help manage costs effectively.

Table of Contents

Storage Costs

Monthly Fee Calculation

Snowflake calculates storage fees based on the daily average amount of data stored over a month. Once your data is loaded into Snowflake, it’s automatically compressed to reduce storage space, so you only pay for the compressed amount.

For example, in AWS US East, storage costs are approximately $40 USD per terabyte per month, though this can vary depending on the cloud provider and region.

Please note: Storage costs may change over time, so it is recommended to review the latest Snowflake documentation for up-to-date pricing and features.

Payment Models

On-Demand Storage

With on-demand storage, you pay at the end of each month based on your actual storage usage. This model offers flexibility for businesses with unpredictable or fluctuating storage requirements.

• Payment: Charges are based on usage, calculated at the end of the billing period.
• Best for: Companies with dynamic storage needs or those starting with Snowflake.
• Regional Pricing: Rates vary by location (e.g., Frankfurt may have different rates than US East).

Capacity Storage

If you can predict your storage needs, capacity storage offers lower rates in exchange for an upfront commitment.

• Upfront Payment: You pay for a specified amount of storage capacity.
• Lower Costs: This model typically offers discounted rates compared to on-demand pricing.
• Best for: Organisations with stable, predictable storage needs looking to reduce costs.

Example Scenario:
If you reserve 1TB of storage for $23 USD per month but only use 100GB, you will still pay for the full 1TB. However, if your usage is closer to the reserved amount, capacity storage could be much more cost-effective than on-demand storage.

Recommendation for Storage Costs

• Start with On-Demand: This model works best when your storage needs are uncertain or fluctuate significantly.
• Shift to Capacity Storage: Once you have a clear understanding of your storage usage patterns, transitioning to capacity storage can help save on costs.

Data Transfer Costs

Data Ingress (Transferring Data into Snowflake)

The good news is that data ingress—transferring data into Snowflake—is free of charge across all cloud providers (AWS, Azure, GCP). This means you won’t incur any costs when uploading data to Snowflake.

Data Egress (Transferring Data out of Snowflake)

Data egress, or transferring data out of Snowflake, is where costs can start to add up. These costs vary based on the cloud provider and region.

• Within Same Region and Cloud Provider: Transferring data within the same region and provider incurs no additional charge.
• Between Regions (Same Provider): Costs apply when transferring data across regions (e.g., from US East to EU Central), but these are typically lower than inter-cloud transfers.
• Between Cloud Providers: Transferring data between different cloud providers (e.g., AWS to GCP) tends to be the most expensive options.

Scenarios for Data Transfer Costs

1. Same Region, Same Cloud Provider:

   • Cost: Free of charge.
   • Example: Transferring data within AWS US East.

2. Different Regions, Same Cloud Provider:

   • Cost: Moderate, depending on the cloud provider.
   • Example: Moving data between AWS US East and AWS Frankfurt.

3. Different Cloud Providers:

   • Cost: Highest among all scenarios.
   • Example: Transferring data from AWS to Google Cloud in different regions.

Important Considerations for Data Transfer

Data transfer costs primarily occur when replicating data across regions or cloud providers. For instance, if you’re replicating data from an AWS account in the US to another Snowflake account hosted on GCP in Europe, you’ll face higher transfer fees.

For specific pricing details and regional variations, refer to Snowflake’s Pricing Guide for the most up-to-date information.

Conclusion

Effectively managing Snowflake’s storage and data transfer costs can make a significant difference in your overall cloud expenditure. Here are some key takeaways:

• Storage Costs: Start with on-demand storage while your data needs are still fluctuating. Once your usage patterns are clearer, consider moving to capacity storage to take advantage of lower rates.
• Data Transfer Costs: While data ingress is free, data egress can become costly, especially when transferring data across different regions or cloud providers. Keeping data within the same region and provider can help minimise these costs.

Please note: Storage and data transfer pricing is subject to change. For the most accurate and current information, refer to Snowflake’s official documentation on pricing and features.