Snowflake embraces open data with Iceberg and generative AI strategy

In a move to redefine its future, Snowflake Inc. is embracing open data through its integration of Iceberg, positioning itself at the forefront of the open data revolution. This pivot is not just about simplifying compute services, but also about enhancing interoperability and support for external engines.

TheCUBE is on set at Snowflake Data Cloud Summit 2024.

“Snowflake’s leadership position was earned because it had a superior product,” said theCUBE Research chief analyst Dave Vellante (pictured). “Its visionary founders saw that the cloud allowed it to separate compute from storage and have virtually infinite scalability on demand. By building an integrated data platform complete with governance, it had tight control over the data and became a trusted source of analytical data.”

Snowflake’s strategy aims to increase flexibility and compatibility with various data engines, paving the way for innovative data management and analysis possibilities. The company is also focusing on generative AI to transform into a leader in artificial intelligence, addressing market pressures and expanding its data application platform. This strategic shift places Snowflake in direct competition with industry leaders such as Databricks Inc., necessitating rapid innovation and flawless execution to maintain its edge in the evolving data landscape, according to Vellante.

Vellante, who is on-site at this week’s Data Cloud Summit, along with his co-host Rebecca Knight, will provide three days of real-time event coverage, from June 4-6. As we gear up for tomorrow’s broadcast, here’s some analysis from our founding analysts at theCUBE Research. Be sure to follow the on-site action straight from our analysts, happening right now on theCUBE’s X and LinkedIn accounts, and stay tuned for Dave Vellante’s exclusive interview on June 5 with Snowflake CEO Sridhar Ramaswamy. (* Disclosure below.)

Snowflake pivots with support of Iceberg

Snowflake unveiled its strategic pivot today toward embracing open data, highlighted by its commitment to Iceberg. This shift signifies a nuanced approach with profound implications for the company’s future.

Snowflake CEO Sridhar Ramaswamy talks with theCUBE’s Dave Vellante about exclusive news, set to air on June 5.

“Many, including us, were asking, ‘Will Snowflake choose to embrace Iceberg and its open data potential, even if it means disrupting Snowflake’s current model,’” said John Furrier, executive analyst of theCUBE Research. “The technology industry has a saying, especially true during major market shifts: ‘Better to eat your own before someone else does.’ For Snowflake, this is happening as they fully embrace Iceberg and its open data capabilities before competitors leverage these advantages against them.”

Iceberg, a powerful tool for simplifying compute services, is central to Snowflake’s strategy. However, the real value lies in its approach to interoperability and external engine support. By integrating Iceberg, Snowflake aims to enhance its platform’s flexibility and compatibility with various data engines, opening up new possibilities for data management and analysis.

“Snowflake’s strategy around Iceberg is a nuanced topic with significant implications. While the simplicity of Snowflake’s compute services is enhanced by Iceberg, the real value lies in how Snowflake chooses to handle interoperability and external engine support,” Furrier said.

Snowflake seeks to embrace open data and generative AI

Snowflake is reframing the future of data platforms. The company faces significant technological challenges as it aims to advance its data cloud vision, transform into an AI leader, become a platform for data applications and address external market pressures, according to Vellante in his latest Breaking Analysis.

TheCUBE analysts will be live on set, sniffing out AI use cases in the enterprise as data drives the application revolution.

The company’s new strategy, which involves embracing open storage formats such as Iceberg, emphasizes data catalogs and integrating generative AI to enhance its value proposition and compete in new markets. Despite having a strong data engine, Snowflake must innovate rapidly to stay ahead of competitors such as Databricks, which has leveraged open data formats to shift control towards data catalogs.

“If Snowflake is going to compete directly with those firms, it needs to surface functionality from its engine and metadata that differentiates and simplifies the gen AI experience in a way that other tools cannot,” Vellante said. “To succeed in its new ambitions, the company, we believe, will have to execute flawlessly on both organic and inorganic innovation vectors while attracting new personas, an ecosystem of developers and balancing profit margins as a public entity.”

Dive deeper into this week’s Breaking Analysis, theCUBE Pod and theCUBE’s extensive event coverage. Plus, watch our news team for up to date news, including reporting from our on-site editors. Also, check out theCUBE’s twitter page for our exclusive breaking analysis.

(* Disclosure: TheCUBE is a paid media partner for Data Cloud Summit. Neither Snowflake Inc., the sponsor of theCUBE’s event coverage, nor other sponsors have editorial control over content on theCUBE or SiliconANGLE.)

Photo: SiliconANGLE