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Data warehouse · 5 min read

Databricks: what it is and when it is worth it for your company

Databricks keeps coming up in AI projects. Without the jargon: what the Lakehouse is, where Databricks shines, when it is too big for a company - and when Fabric or Snowflake serve better.

Richard Böhmer, MSc

Databricks Lakehouse - a layered architecture from data storage to BI and AI

There’s a lot of marketing around Databricks - one moment it’s the “solution to everything”, the next a “toy for corporations”. The truth sits somewhere in between. Let’s look at it soberly: what it is, where it shines and when it makes sense for your company - and when it doesn’t.

What is Databricks

Databricks is a cloud data platform built around the concept of a Lakehouse. It was founded by the creators of Apache Spark, and its core idea is to merge two worlds that were separate for years:

  • A data lake - cheap storage for huge amounts of data in any format (including raw, semi-structured).
  • A data warehouse - fast, structured queries for reporting and analytics.

The “Lakehouse” combines both: one place for all your data, on top of which reporting, data science and AI all run - without endless copying between systems.

Key components:

  • Delta Lake - a reliable table format over the data lake (transactions, versioning, quality).
  • Apache Spark - powerful processing of large data volumes.
  • Unity Catalog - governance, access rights and a data catalogue in one place.
  • MLflow and AI tools - training, deploying and managing models.

What Databricks excels at

  • Large data volumes - terabytes and more, where a classic SQL warehouse hits its limits.
  • Data engineering - robust ETL/ELT pipelines over heterogeneous sources.
  • Data science and AI/ML - this is Databricks’ home turf. If you plan predictive models or your own AI over data, it’s among the best.
  • Streaming and real-time - processing data that flows continuously.
  • Openness - it’s built on open standards (Delta, Spark), so there’s less vendor lock-in risk.

When Databricks is overkill

Let’s be honest - not every company needs Databricks. It’s a powerful tool that also comes with cost and complexity.

  • A small company with one or two systems and reporting in Power BI - a simpler data warehouse is enough; Databricks would be using a sledgehammer to crack a nut.
  • Mostly classic BI reporting without AI and without huge volumes - cheaper and simpler solutions do the same job.
  • A team without data engineers - the platform has a learning curve; without people who can use it, it stays underused.

We took an equally sober look at Microsoft Fabric in Microsoft Fabric: is it worth switching to?.

Databricks vs Microsoft Fabric vs Snowflake

A simplified comparison - reality always depends on the specific case:

DatabricksMicrosoft FabricSnowflake
StrengthAI/ML, big data, engineeringMicrosoft ecosystem, Power BISimple cloud warehouse, SQL
Best forData-mature firms, AI ambitionsCompanies on MicrosoftCompanies wanting quick and simple
Learning curveHigherMediumLower
Data formatOpen (Delta)OneLake (Delta)Mostly proprietary

It’s not about “which is best”, but which fits your data, team and goals. That’s exactly what we solve in data strategy - vendor-neutral, with no licences to sell.

How much does it cost

Databricks is paid mainly for the compute you consume - not a flat software fee. That’s both an advantage (you pay for real usage) and a risk (without control, costs can grow). That’s why it pays to design and optimise the platform well. For the overall cost framework of a data project, see How much does a data warehouse or BI project cost.

How we approach it

We’re not sellers of a single platform. First we understand your data, team and goals - and only then do we recommend whether Databricks is the right choice, or whether Fabric, Snowflake or a simple SQL warehouse would serve you better. The goal is value for a reasonable price, not the biggest technology.


Considering Databricks, or not sure which data platform is right for you? Check out our data strategy or get in touch - on a no-obligation consultation we’ll give you straight advice.

Tags: #databricks #lakehouse #data-platform #ai

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