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Data Engineering10 min read

Data Pipeline Cost Optimization: Where the Money Really Goes

Data pipelines cost 2-5x what most organizations budget. Here's why.

By Richard Ewing·

The Hidden Costs

Budget: compute + storage. Reality: compute + storage + data transfer + processing + monitoring + error handling + schema management + team time.

Optimization: batch where possible (real-time costs 3-5x more), compress data in transit (-30-50% transfer costs), implement data lifecycle policies (auto-archive after 90 days), and use columnar formats (Parquet: 75% storage reduction vs. CSV).

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Published Work

This article expands on ideas from my published work in CIO.com, Built In, Mind the Product, and HackerNoon. View published articles →

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Richard Ewing

The Product Economist — Quantifying engineering economics for technology leaders, PE firms, and boards.