Snowflake SnowPro Certification Practice Test

What cost does the Provider incur during the Data Sharing process?

1. Data Transfer Costs

2. Compute Costs

3. Data Storage Costs

4. Licensing Fees

The correct answer is: Data Storage Costs

In the context of the Data Sharing process in Snowflake, the correct identification of costs incurred by the Provider highlights the unique aspects of how Snowflake handles shared data. During data sharing, the Provider does not incur traditional costs associated with data transfer or compute, as the data being shared is not being duplicated or moved across different storage locations; rather, it remains in the original location and is accessed by the consumer in real-time. However, the Provider is responsible for data storage costs, as they maintain the datasets that are being shared. This involves ensuring that data is successfully stored in their own Snowflake environment, regardless of whether it is being actively used by external consumers or not. The storage of the data remains an ongoing cost for the Provider, as they will need to resource and maintain it as part of their overall data infrastructure. Understanding this financial dynamic is key for Organizations considering utilizing Snowflake's data sharing capabilities, as they plan for the implications of data storage and potential growth of their datasets over time.