The 2025 AI-Readiness Crisis: Why Legacy Data Warehouses Can’t Keep Up
Legacy data warehouses (Oracle, Teradata, SQL Server) were built for batch BI queries, not GenAI workloads. Here’s what’s breaking in 2025:
- ❌ No vector embeddings (RAG requires co-locating structured data + embeddings)
- ❌ No elastic GPU compute (LLM fine-tuning needs 0→1,000 GPUs in minutes)
- ❌ Hardware refresh cliff ($5M-$10M CapEx for Teradata/Oracle EOL)
The 2025 calculus: Snowflake’s 3-year TCO ($1.5M-$5M OpEx) now costs less than a single Teradata hardware refresh.
How to Choose a Snowflake Migration Partner
If you prioritize AI/ML enablement: Slalom. Their expertise in Snowpark and Cortex AI is unmatched for building modern data apps.
If you have massive legacy SQL (Oracle/Teradata): Infosys. Their automated conversion tools can handle millions of lines of PL/SQL and BTEQ code.
If you need industry-specific data models: Cognizant. They bring pre-built accelerators for Healthcare, Retail, and Finance verticals.
If you have a petabyte-scale global estate: Accenture. They have the scale and methodology to handle the largest, most complex migrations without downtime.
Red flags:
- Vendors who suggest a “Lift and Shift” without a clear optimization phase (guaranteed cost explosion)
- No experience with “SnowConvert” or similar automated code conversion tools
- Ignoring “Data Egress” costs in the TCO model
- Lack of FinOps governance in the project plan
Top 3 Reasons Snowflake Migrations Fail
1. Lift-and-Shift Without Optimization (35% of Failures)
Porting Teradata DDLs 1:1 to Snowflake leads to full table scans and 2-3x cost overruns.
Reality: A Fortune 500 retailer migrated 100TB without clustering keys. First month bill: $80K instead of $20K. Fix: Define clustering keys on filtered columns before go-live. Use Snowflake Query Profile to identify table scans.
2. SQL Conversion Underestimation (30% of Failures)
Teradata BTEQ macros and Oracle PL/SQL packages don’t auto-convert. Budget 40-60% of timeline for SQL refactoring.
Reality: SnowConvert AI achieves 85% automation on simple SELECT/INSERT. Complex stored procedures? 30-40% manual rewrite. Fix: Run SnowConvert before signing the SI contract. Add 6-12 months if you have 100K+ lines of code.
3. Data Egress Costs (25% of Failures)
Moving 100TB from on-prem to cloud incurs $5K-$12K in network fees + 4 weeks of bandwidth saturation.
Reality: Most firms forget to budget for egress. Surprise bills of $50K-$500K are common. Fix: Use AWS Direct Connect or phased migration (migrate BI workloads first, then ETL).
Snowflake Migration Roadmap
Phase 1: Assessment & Strategy (Months 1-3)
Activities:
- Run SnowConvert analysis to size SQL complexity
- Define “Lift & Shift” vs “Re-architect” strategy per workload
- Calculate TCO and ROI model
- Select SI partner and cloud provider (AWS/Azure/GCP)
Deliverables:
- Migration Strategy Document
- TCO Model
- Signed SI Contract
Phase 2: Foundation & Pilot (Months 4-6)
Activities:
- Set up Snowflake Organization & Accounts
- Implement RBAC (Role-Based Access Control)
- Configure Networking (PrivateLink) & Security
- Migrate a pilot workload (e.g., Marketing Data Mart)
Deliverables:
- Secure Snowflake Environment
- Pilot Success Report
- Validated Migration Patterns
Phase 3: Migration Factory (Months 7-18)
Activities:
- Automated SQL Conversion (SnowConvert)
- Historical Data Load (Snowball / Direct Connect)
- ETL/ELT Pipeline Migration (Informatica → Matillion/dbt)
- Validation & Testing (Row counts, Hash checks)
Risks:
- SQL conversion errors in complex stored procedures
- Data egress bandwidth saturation
Deliverables:
- Migrated Data Warehouse
- Converted ETL Pipelines
- UAT Sign-off
Phase 4: Optimization & Cutover (Months 19-24)
Activities:
- Performance Tuning (Clustering Keys, Warehouse Sizing)
- FinOps Setup (Resource Monitors, Auto-Suspend)
- Parallel Run (Legacy vs Snowflake)
- Final Cutover & Legacy Decommission
Deliverables:
- Production Snowflake Environment
- Decommissioned Legacy Hardware
- Project Closure
Post-Migration: Best Practices
Months 1-3: FinOps & Stabilization
- Cost Governance: Implement strict Resource Monitors. Watch for “runaway queries” that burn credits.
- Performance: Monitor “Spilling to Disk” in Query Profile. Resize warehouses if needed.
Months 4-6: Modernization
- Data Sharing: Replace FTP file transfers with Snowflake Secure Data Sharing.
- AI/ML: Start using Snowpark for Python-based ML workloads directly in the database.
Engagement Models: Choose Your Path
1. DIY / Assessment (<$100K)
- Tools: SnowConvert AI (free), SQL Analyzer, FinOps Tooling
- Goal: Understand SQL complexity and data volume before hiring an SI.
2. Guided Strategy ($100K-$500K)
- Deliverables: Migration Roadmap, SQL Assessment, Vendor Selection (RFP)
- Goal: Choose the right strategy (Lift-and-Shift vs Re-Architecture).
3. Full Migration ($500K-$10M+)
- Deliverables: SQL Conversion, Data Migration, Testing, FinOps Setup
- Goal: Execute migration on time and on budget.
Snowflake vs Databricks vs Redshift: Decision Matrix
| Factor | Snowflake | Databricks | Redshift |
|---|---|---|---|
| Best For | SQL-first analytics, BI, structured data | ML/AI-first, data engineering, unstructured data | AWS-locked enterprises |
| Primary Users | Business analysts, SQL developers | Data scientists, ML engineers | AWS-native teams |
| Architecture | Multi-cluster shared data (decoupled compute/storage) | Lakehouse (Delta Lake + Spark) | MPP columnar (tightly coupled) |
| AI/ML Support | Snowpark (Python/Java), Cortex AI, Container Services | Best-in-class (Mosaic AI, MLflow, custom models) | SageMaker integration only |
| Query Language | SQL (SnowSQL) | SQL + Python + R + Scala | SQL (PostgreSQL-compatible) |
| Multi-Cloud | ✅ AWS, Azure, GCP | ✅ AWS, Azure, GCP | ❌ AWS only |
| Cost Model | Consumption-based ($2/credit) | DBU-based (compute + storage) | Node-based (predictable) |
| Scaling | Instant (resize warehouse in seconds) | Auto-scaling clusters | Resize requires downtime (unless Serverless) |
| Pitfall | Query cost explosion if unoptimized | Requires Spark expertise | Vendor lock-in, scaling complexity |
Decision Guide:
- 80% SQL queries, BI dashboards → Snowflake
- 80% Python/ML, custom models → Databricks
- Already deep in AWS, no multi-cloud plans → Redshift Serverless
Migration Strategies: Lift-and-Shift vs Re-Architecture
1. Lift-and-Shift ⚡ Fastest (But Expensive Long-Term)
What it is: Direct port of Teradata/Oracle DDLs to Snowflake. Minimal SQL changes, use SnowConvert for automation.
Timeline: 12-15 months
Cost: $500K-$2M (lower upfront, higher consumption)
Pros:
- ✅ Fastest path (critical for hardware EOL deadlines)
- ✅ Lower initial consulting costs
- ✅ Minimal business logic rewrite
Cons:
- ❌ Poor query performance (no cluster optimization)
- ❌ 2-3x higher Snowflake consumption costs
- ❌ Technical debt carried forward
Best For: Hardware refresh deadline, compliance-driven migration, limited budget
2. Re-Architecture 🏗️ Optimal (Higher Upfront, Better ROI)
What it is: Redesign for Snowflake’s micro-partitions, clustering keys, and ELT methodology. Full query optimization.
Timeline: 18-24 months
Cost: $2M-$5M+ (higher upfront, 40% lower consumption)
Pros:
- ✅ Optimized for Snowflake (80-95% query pruning)
- ✅ Lower long-term cloud costs (3-year ROI)
- ✅ Unlocks AI/ML capabilities (Snowpark, Cortex)
Cons:
- ❌ Longest timeline (may miss hardware EOL)
- ❌ Requires data engineering expertise
- ❌ Higher consulting fees
Best For: Long-term migration, AI/ML roadmap, FinOps-mature organizations
3. Hybrid (Phased) 🔄 Most Common
Timeline: 15-20 months
Approach: Lift-and-shift BI workloads (Phase 1: 6 months), then re-architect ETL/ML (Phase 2: 12 months)
Why it works: Immediate cost savings from hardware decommission, then optimize high-value workloads.
Cost Breakdown: Where the Money Goes
| Line Item | % of Total | Example ($2M Migration) |
|---|---|---|
| SQL Conversion & Testing | 40-60% | $800K-$1.2M |
| Data Migration (Egress + Tools) | 15-20% | $300K-$400K |
| Snowflake Consumption (Year 1) | 10-15% | $200K-$300K |
| Training & Change Management | 10-15% | $200K-$300K |
| FinOps Tooling & Governance | 5-10% | $100K-$200K |
Hidden Costs:
- Data egress: $0.05-$0.12/GB (100TB = $5K-$12K)
- Snowflake credits: First 3 months often 2x budget (poor optimization)
- Talent: Cloud data engineers ($150K-$180K vs $110K for legacy DBAs)
SQL Conversion Challenges: The 40-60% Problem
Teradata → Snowflake
- BTEQ scripts → SnowSQL stored procedures (SnowConvert: 85% automated)
- Primary Index (PI) → Clustering Keys (manual redesign required)
- MERGE statements → MERGE or INSERT/UPDATE (syntax differs)
Oracle → Snowflake
- PL/SQL packages → Snowflake JavaScript UDFs (manual rewrite)
- ROWNUM → ROW_NUMBER() window function
- CONNECT BY → Recursive CTEs
SQL Server → Snowflake
- T-SQL cursors → Array functions or SQL set-based logic
- Linked servers → Snowflake data sharing or external tables
- tempdb → Transient tables (auto-dropped after session)
SnowConvert AI Success Rate:
- Simple SELECT/INSERT: 95%+
- Complex stored procedures: 60-70%
- Custom macros/UDFs: 30-40% (requires manual review)
Cost Control (FinOps): Preventing the $50K Surprise Bill
1. Resource Monitors (Budget Alerts)
Set credit limits per warehouse:
CREATE RESOURCE MONITOR analytics_limit WITH CREDIT_QUOTA = 1000
TRIGGERS ON 80 PERCENT DO NOTIFY
ON 100 PERCENT DO SUSPEND;
2. Auto-Suspend Policies (Idle Shutdown)
Default: 1 minute. Prevents $20K/month waste from forgotten queries.
3. Clustering Keys (Query Pruning)
Define clustering on frequently filtered columns:
ALTER TABLE orders CLUSTER BY (order_date, region);
Impact: Reduces scanned data by 80-95% → 80-95% cost savings.
4. Commitment Purchases (Reserved Capacity)
- 40% discount on upfront annual commitment
- Risk: If usage drops, you overpay
- Rule: Buy ONLY after 6 months of steady-state usage
5. Query Optimization
Use Snowflake’s Query Profile to identify full table scans and missing filters.
Vendor Selection Criteria
| Your Situation | Recommended Vendor |
|---|---|
| Oracle DW with 50K+ LOC PL/SQL | Infosys (automated conversion tools) |
| AI/ML roadmap (LLMs, RAG, vector DBs) | Slalom (Snowpark + Cortex AI expertise) |
| Petabyte-scale, global rollout | Accenture (200TB+ experience) |
| Healthcare/Retail verticals | Cognizant (industry accelerators) |
ROI & Break-Even Analysis
Operational Savings (Post-Migration)
- Hardware decommission: $2M-$10M CapEx (Teradata/Oracle licenses + maintenance)
- Elastic scaling: No over-provisioning (pay only for active compute)
- Faster queries: 80% reduction in query time (Snowflake’s result caching + clustering)
Break-Even Timeline
- Median Investment: $1.5M
- Annual Savings: $500K-$800K (hardware + licenses + reduced DBA headcount)
- Break-Even: 2-3 years
Only migrate if:
- Hardware EOL approaching (forcing $5M+ refresh)
- AI/ML roadmap requiring elastic compute
- Multi-cloud strategy (avoiding AWS/Azure lock-in)