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Enterprise Data Infrastructure: Cost Efficiency vs Hyperscale | 1Digit — Software, Data and AI Consultancy Skip to main content
Data Platforms 15 February 2025 · 5 min read

Cost Efficiency vs Hyperscale: Rethinking Enterprise Data Infrastructure

Hyperscaler data warehousing is powerful but expensive. For most enterprise workloads, European sovereign alternatives deliver equivalent capability at a fraction of the cost.

Hyperscaler data warehousing is powerful. Snowflake, Databricks, and BigQuery have transformed how organisations work with data. But they come with significant costs that many enterprises are only now beginning to fully understand.

The Hidden Costs of Hyperscale

Beyond the headline pricing, hyperscaler data platforms carry costs that compound over time.

  • Compute charges that scale faster than data volume
  • Egress fees that penalise data movement
  • Licensing complexity that makes budgeting unpredictable
  • Vendor lock-in through proprietary formats and APIs

For many enterprise workloads, hyperscaler costs exceed the value delivered.

— 1Digit Platform Economics Research

The European Alternative

European cloud providers like IONOS offer enterprise-grade infrastructure at significantly lower cost points.

  • Lower base pricing — European cloud economics without hyperscaler margins
  • No egress fees — within-network data movement at no additional cost
  • Open standards — no proprietary format lock-in
  • Sovereign data — GDPR-compliant by design, no transatlantic transfers

Smart Lakehouse on IONOS

At 1Digit, we have architected the Smart Lakehouse on IONOS — a managed data platform that delivers enterprise analytics and AI capability at a fraction of hyperscaler costs. Built on open-source technologies including Trino, Apache Kafka, and Apache Iceberg.

  • Managed lakehouse environment
  • Distributed SQL query engine
  • Self-service analytics
  • AI/ML pipeline integration
  • Full governance and observability

Making the Switch

Transitioning from a hyperscaler to a more cost-efficient platform does not have to be disruptive. Our approach is incremental.

  1. Assess current costs and workload characteristics
  2. Architect the target platform with migration path
  3. Migrate workloads in priority order with validation at each step
  4. Optimise for cost and performance post-migration

Explore Platform Options

Discuss how a purpose-built data platform can reduce cost, improve governance, and accelerate your AI initiatives.