Snowflake SnowPro Certification Practice Test

How are storage costs calculated in Snowflake?

1. Monthly average of all raw data stored

2. Daily average of all compressed data storage

3. Hourly rate based on usage

4. Annual tariff based on predicted storage

The correct answer is: Daily average of all compressed data storage

Storage costs in Snowflake are calculated based on the daily average of compressed data storage. This approach reflects the efficiency of Snowflake's architecture, which implements advanced data compression techniques. By calculating costs based on the average amount of data stored each day, Snowflake ensures that you are only charged for the storage that you actually use, accounting for any optimizations that have been applied to the data. This daily averaging method means that fluctuations in data volume throughout the month are smoothed out, providing a more consistent and predictable cost structure. Additionally, because Snowflake excels at compressing data—often resulting in significantly reduced storage requirements compared to the raw data—this calculation method aligns with Snowflake's commitment to cost efficiency and transparency in billing. The other methods for calculating storage costs do not accurately represent how Snowflake operates. For instance, a monthly average or hourly rate would not efficiently account for variable data usage patterns, and an annual tariff based on predictions does not reflect the real-time usage of storage resources. Thus, basing costs on daily averages of compressed storage is the most accurate and effective approach used by Snowflake.