![]() Both, along with heavyweights Amazon ( AMZN) Redshift and Microsoft ( MSFT) Synapse, are giving traditional data warehouse vendors like Teradata ( TDC) and Oracle ( ORCL) a "run for their money".Both support big data analytics and business-intelligence ("BI") use cases over large, petabyte-scale datasets.Both are cloud-native data warehouse platforms.On the surface, Snowflake and Google BigQuery appear quite similar: It should be clear to readers, based on context, when I am using "Google" and "GOOG" from an organizational perspective. Which company, in the context of the DWaaS market, represents a better investment opportunity?Īs I explore answers in the body of this report, I briefly note here that when discussing the firms themselves, and not the technologies, I use "Google" and stock symbol "GOOG" as synonyms for Alphabet.Does either platform have an edge over the other?.What distinguishes Snowflake from Google BigQuery and vice versa?.Indeed, a comparative investigation between the two might elicit three fundamental questions: The Forrester report looks at 13 DWaaS vendors, but relative to SNOW, I am specifically interested in examining BigQuery in this analysis. Source: The Forrester Wave: Cloud Data Warehouse, Q1 2021 - The 13 Providers That Matter Most and How They Stack Up Figure 2: The Forrester Wave for Cloud Data Warehouse Q1 2021 ![]() Investors, like me, who remain a bit skittish of SNOW's stock price but may be keen to make a DWaaS play might find a comparison between SNOW and Google's BigQuery useful ( NASDAQ: GOOGL, NASDAQ: GOOG) particularly as the latter came out "on top" in the recent Forrester Wave for Cloud Data Warehouse report when considering a blend of the "offering" and "strategy" axes. Well, I would offer that I wrote a couple bullish Seeking Alpha articles about Snowflake around the time of its IPO last year ( 1, 2) and since then, I have been waiting for the violent sell-off that some predicted would occur after the firm went public. Should investors jump on board the SNOW train ahead of Q1 FY '22 earnings on May 26? Trading under $200 just a few days ago, SNOW has rallied on analyst upgrades and is trading a bit shy of $225 as write this but is far off its 52-week high of $429 reached in December 2020. The company has also made progress getting its "house in order", expanding gross margins to nearly 70%, and simultaneously reducing operating expenses as a percentage of sales. Snowflake ( NYSE: SNOW), the currently very "voguish" DWaaS play, has continued along its growth trajectory, posting $592M in revenue for the fiscal year ending Janurepresenting year-over-year growth of 124%. Either way, firms and investors alike are eager to get their slice of the pie, and the data warehouse wars - especially the battle for DWaaS dominance - may only just be heating up. There is the possibility the Mordor Intelligence report is actually too conservative with their DWaaS forecast (more on that later). The explosion in cloud computing has produced the even-faster-growing Data Warehouse-as-a-Service ("DWaaS") sub-market, which Mordor Intelligence has suggested is increasing at a 20% CAGR, and expected to reach ~$4B by 2026. Companies of every sort are hungry to exploit data for an advantage and data warehousing is a key enabling technology in that regard. Regardless of what the exact numbers may be, it is easy enough to think the proposed market size and market growth rate are probably in the right neighborhood. Figure 1: Global Data Warehousing Market Forecast By some analyst estimates - which as usual tend to be all over the map - the market may exceed $25B in 2021. The global data warehousing market, inclusive of on-premise systems, is growing at a healthy clip, perhaps around an 8% CAGR, fueled by an increasing need across industries for low-latency, real-time analytics. * Depending on which forecast you choose to believe. Photo by Anna Bliokh/E+ via Getty Images Tapping Into a $25B+ Market*
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