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Choosing the Right Lakehouse: Databricks vs. Montrose Software Lakehouse vs. Snowflake

A Practical Guide to Platform Selection Based on Your Needs, Capabilities, and Goals


In today’s data-driven landscape, companies face a crucial architectural decision: whether to adopt a SaaS-based analytics platform like Databricks or Snowflake or to build a tailored Lakehouse solution in-house with support from a partner like Montrose Software.


This article offers a strategic framework for making that choice, covering key technology stack considerations, organizational maturity thresholds, and a hybrid approach.


  1. Overview


Databricks


A unified data and AI platform offering lakehouse architecture, collaborative notebooks, Delta Lake, MLflow, and Mosaic AI for LLMs. It's a powerful SaaS option ideal for fast-moving teams who need scalability, advanced analytics, and immediate AI/ML capabilities.


Snowflake


A cloud data warehouse designed for ease of use and fast SQL analytics. It excels in structured BI workloads, secure data sharing, and zero-maintenance operations. While it has added ML/LLM capabilities via Cortex, it's not designed for deep model training or heavy data engineering.


Montrose Software Lakehouse


A customizable, open-source lakehouse solution built and managed by Montrose Software. It uses best-of-breed components like Apache Hudi, Iceberg, Spark, Kafka, Flink, MLflow, and Superset. Ideal for companies that want cost control,a focused kick start with architecture flexibility, and reduced vendor lock-in.


  1. Thresholds for Building In-House


Building your own lakehouse platform requires certain organizational capabilities. Here are the key thresholds to evaluate:


  • CloudOps / DevOps Maturity: You'll need automation, infrastructure-as-code, and monitoring in place as well as teams ready to handle the IT challenges promptly in a structured fashion.


  • Big Data Engineering Talent: Spark, Kafka, Flink, Delta/Hudi/Iceberg require experience.


  • Security and Compliance Needs: If you need fine-grained IAM or sovereignty controls.


  • Desire for Cost Control: SaaS licensing can grow quickly; OSS can reduce costs long-term. Investing in FinOps is critical to make sure you spend where it matters most.


  • Long-Term Strategic Autonomy: Avoiding vendor lock-in or integrating niche components (like specific LLMs).


If the client lacks the engineering capacity but wants control, Montrose offers a middle path: we build and maintain the lakehouse for you, tailored to your requirements.


  1. Hybrid Approach


We often consider a hybrid approach, leaving space for adaptability in the future.


Phase 1: POC/MVP with Databricks or Snowflake


  • Get to value quickly using Databricks or Snowflake

  • Test business logic, dashboards, and ML/LLM use cases.

  • Validate performance and usage patterns.


Phase 2: Expand and Transition to Montrose Lakehouse


  • Re-implement successful pipelines on the OSS stack.

  • Use Hudi/Iceberg for compatibility.

  • Replace dashboards and notebooks with open-source tools or integrate with the Frontend tools you are already using today.


Phase 3: Optimize & Decommission


  • Fully migrate storage, compute, and orchestration.

  • Keep Databricks selectively (e.g., for GPU workloads).

  • Achieve cost savings and full architectural control.


This approach gives your organization early results without long-term SaaS premiums.


  1. When to Choose What?

Use Case

Databricks

Snowflake

Montrose Custom Lakehouse

Fast MVP / POC

Yes

Yes

Slower to implement unless very specific requirements are well-defined and close-ended



Capex vs Opex financing

Opex

Opex

Hybrid

Deep ML/LLM Workflows

Best Choice

Inference only

With engineering help

Streaming Data Ingestion

Strong

External-only

Flexible + scalable

Cost Efficiency (at scale)

Can get expensive

Premium pricing

OSS = low cost, high control

Custom Architecture

Limited

Closed system

Full control

Multi-cloud / Sovereignty Needs

Good

Good

Total freedom

Need for consulting services for setup and operations

Yes, partially elevated with the help of Databricks resources

Yes, partially elevated with the help of Databricks resources

Flexible: Embedded in the pricing or time-and-materials depending on the needs


  1. Business Use Case


At the core of any transformation is the “why.”


Whether you're a Data Practitioner looking to improve data quality and governance, a Product Owner striving to deliver actionable insights faster, or a CTO aiming to future-proof your architecture with AI and automation, our mission is to support your vision with the right technology and delivery strategy.


Are you trying to:


  • Empower internal data teams with scalable, reliable pipelines?


  • Unlock a new portfolio of precise, decision-ready BI reports?


  • Improve business efficiency with intelligent assistants that automate repetitive tasks?


At Montrose Software, we apply Silicon Valley-inspired product thinking and methodologies like Amazon’s “working backwards” approach to ensure every solution serves a clear business objective.


From data infrastructure modernization to custom AI applications, we tailor our platforms and tools to support your long-term growth, solving immediate challenges while laying the foundation for innovation.



  1. Tech Stack Considerations

Component

Databricks

Snowflake

Montrose Lakehouse

Storage Format

Delta Lake

Proprietary

Delta / Hudi / Iceberg / s3

Stream Ingestion

Autoloader, Kafka

External only

Kafka, Pulsar, Kinesis

Stream Processing

Spark Streaming

Not native

Flink, Spark Streaming, GoLang on K&8

ML & AI Pipelines

MLflow, Mosaic AI

Cortex (limited inference)

MLflow, KubFlow, LangChain, custom LLM endpoints, MCP

BI Dashboards

Native Dashboards

Tableau, Power BI

Apache Superset,Power BI, Tableau

Catalog & Lineage

Unity Catalog

Snowflake Data Governance

Amundsen, DataHub, Nessie (for Iceberg)

Notebook Dev

Collaborative Notebooks

None

JupyterHub, VSCode, Deepnote


Final Thoughts


Choosing the right lakehouse platform isn’t just about features, but even more importantly, it’s about alignment with your timing, teams, timeline, budget, and long-term data strategy.


  • Use Databricks for speed and AI-rich MVPs and to secure future-proof enterprise readiness and ready-to-scale,


  • Use Snowflake for easy analytics and dashboards, enterprise, and scale-ready.


  • Use Montrose Lakehouse for full control, open standards, and scalable savings.


Or, best of all: use them in tandem, and let Montrose guide your roadmap toward a tailored, cost-effective, AI-ready data platform.


Ready to explore your options? Contact Montrose Software for an architecture workshop or discovery call.



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Kraków / Poland

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30-346 Kraków
Poland

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351 Hartford Rd,
South Orange NJ 07079 USA

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