The Unbundling of Databases: Why Storage Commoditization is Inevitable

Database vendors are facing customer pressure to separate storage from compute, moving toward open data formats like Apache Iceberg and Parquet instead of proprietary lock-in. This shift will force database companies to compete primarily on query engine performance rather than storage pricing. Snowflake's earnings call revealed that major customers are adopting open formats and moving data out of proprietary databases, signaling a fundamental change in how enterprises manage data infrastructure.