[HN Gopher] Snowflake to buy Crunchy Data for $250M
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       Snowflake to buy Crunchy Data for $250M
        
       Author : mfiguiere
       Score  : 67 points
       Date   : 2025-06-02 20:01 UTC (2 hours ago)
        
 (HTM) web link (www.wsj.com)
 (TXT) w3m dump (www.wsj.com)
        
       | chachra wrote:
       | Bummer that all the postgres serverless providers are getting
       | acquired. First Neon, now this. Hope the innovation and
       | competitive pricing continues!
        
         | redwood wrote:
         | There's still Xata. And plenty of other options that support a
         | Postgres compatible API like CockroachDB and Yugabyte.
         | 
         | The problem is there's so much sprawl in this postgres
         | ecosystem that it seems like no one other than the hyperscalers
         | is really able to reach a escape velocity...
        
           | tristan957 wrote:
           | Yugabyte is Postgres from my understanding. They recent
           | rebased from 12 to 15, I think.
        
         | AnnaPali wrote:
         | Sounds like time to build up a new postgres serverless company
         | and get acquihired/exited!
        
       | neonate wrote:
       | https://archive.md/59bYY
        
       | candiddevmike wrote:
       | > Part of the reason Snowflake and Databricks are interested in
       | database companies is because PostgreSQL can serve as the
       | underlying database for customers to create AI agents with data
       | they store in the companies' respective platforms.
       | 
       | I don't understand this part. What does PostgreSQL offer here
       | that these vendors believe they can't add to their existing
       | platform? Is it the ecosystem?
        
         | gk1 wrote:
         | Low-latency and cheap retrieval for RAG.
        
           | FridgeSeal wrote:
           | But why do they need serverless Postgres for that?
           | 
           | They could achieve the same with normal pg, or SQLite. Or any
           | number of other embedded DB's. There's also plenty of
           | disaggregated compute options available...
        
             | redwood wrote:
             | I imagine they are buying the expertise in managing the
             | transactional system rather than the IP itself.
             | Operationally running a transactional system is a different
             | ballgame for these OLAP players.
             | 
             | (of course what they're not getting is scale readiness..
             | it's not like these companies have anything resembling RDS
             | level customer workloads)
        
         | steveBK123 wrote:
         | I read this as "buying potential competitors off the market"
         | right?
         | 
         | Less ability for customers to roll-their-own => more customers
         | for Snowflake?
        
           | FridgeSeal wrote:
           | With neon being bought by databricks, serverless Postgres
           | tech has effectively disappeared from the market.
        
             | fsckboy wrote:
             | is it open source? (this?
             | https://github.com/neondatabase/neon.git ) and since it's
             | serverless, in terms of being on the internet what are you
             | saying has disappeared, a proprietary version?
             | support/consulting contracts?
        
             | tristan957 wrote:
             | What do you mean by this? Neon is still operating the same
             | service.
             | 
             | Source: I work there.
        
         | znpy wrote:
         | I think it's the large ecosystem of BSD licensed stuff they can
         | fork and relicense as proprietary software.m, because the BSD
         | license allows that.
        
         | brightball wrote:
         | Crunchydata is an excellent vendor and a purist in the
         | ecosystem. The Crunchydata Warehouse product was also extremely
         | compelling.
         | 
         | It's probably worth it just for their people.
        
       | film42 wrote:
       | Congrats to the Crunchy Data team! Thanks for making
       | containerized postgres so easy for years and years. Wish you all
       | the best!
        
       | kwillets wrote:
       | Snowflake is becoming the Juicero of data.
        
         | markus_zhang wrote:
         | As a DE, I have an unpopular disdain of Snowflake because it
         | trivalize a lot of stuffs. I think I'm going to switch to OLTP
         | given the chance.
        
           | gigatexal wrote:
           | Can you go into more depth on this?
        
           | FridgeSeal wrote:
           | Right there with you.
           | 
           | Developed my disdain after having to put up with the
           | incredibly shitty behaviour from the sales and account teams
           | a few years ago.
           | 
           | Sure they had some novelty years ago, but everyone and their
           | dog has disaggregated compute these days, and all their other
           | "feature" just feel like enterprise money extraction that
           | they've acquihired in.
           | 
           | Expensive, slow, and painful.
        
           | 9283409232 wrote:
           | If you're using Snowflake as an OLTP you're looking at the
           | wrong technology anyway.
        
         | 9283409232 wrote:
         | If you can afford it, I have a hard time coming up with reasons
         | to not use Snowflake.
        
       | pella wrote:
       | github repo : https://github.com/crunchydata
        
         | fredthestair wrote:
         | Snowflake sounds like nominative determinism. I was just
         | looking at this thing today, totally puzzled as to how to
         | update it and postgres itself without rolling dice that it
         | destroys everything on the cluster that uses postgres. Perhaps
         | someone with k8s experience could explain to me why CRDs are
         | not Singleton hell? The LLMs just run me in circles..
        
           | antibios wrote:
           | I run a two service cluster in the home lab for fun. I use
           | PVC mapped to a NFS share for the actual data so you could
           | always run a local postgres binary against it. In a
           | production environment I would map these to local disk
           | partitions like you would normally do for a db.
           | 
           | The upgrade process is actually quite nice when it works but
           | it is "another" thing to learn and troubleshoot.
           | 
           | I think of CRDs as a troubleshooting flowchart that someone
           | with more experience than me has put together. When it's
           | right it's great and when it's wrong it makes trouble
           | shooting harder. That is until you remember that the whole
           | point of k8s is ephemeral containers. When one breaks just
           | delete it and let pgcluster CRD resync the data.
        
       | debarshri wrote:
       | I think $250M is fairly low. Must be a good deal for snowflake.
        
         | open592 wrote:
         | With Neon going to Databricks, the pool of potential buyers
         | dramatically shrank.
        
         | achristmascarl wrote:
         | I wonder what accounts for the gap between this and Neon's $1B
         | price tag. Is the deal structured less favorably for Neon? Does
         | Neon have significantly more revenue?
         | 
         | Seems like Neon raised a lot more venture funding, too.
        
       | jrochkind1 wrote:
       | any guesses as to whether existing products will remain?
        
       | buremba wrote:
       | It's interesting that Snowflake went shopping for Crunchy Data
       | over Neon. While Neon focused on bringing compute and storage
       | separation to OLTP, Crunchy Data focused more on bringing
       | OLTP/PostgreSQL closer to OLAP with DuckDB and Iceberg.
       | 
       | In a way, Crunch Data was a competitor to Snowflake as they
       | literally name themselves as "Postgresql Data Warehouse" but
       | correct me if I'm wrong. Neon sounds more complementary to
       | Snowflake as they were struggling with an OLTP backend, namely
       | their Unistore product, which was announced 3 years ago but never
       | went into general availability due to it's scalability issues.
       | 
       | Maybe Neon was 4x more expensive, but this acquisition sounds
       | more like an answer to Databricks than a strategic acquisition if
       | I'm being honest. Apparently, they had $30M ARR, so it's 8x ARR,
       | which is a cheaper answer to Databricks.
        
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       (page generated 2025-06-02 23:00 UTC)