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Isn’t there a partitioning issue on the GSI here?

I mean, all customers have something like pk=customer1 sk=customer so all customers are in the same partition of the GSI. I know it’s a big deal To distribute the table partition key but doesn’t that also apply to the GSI?

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It does apply to the GSI. This point is briefly addressed in the sidebar about sharding father down in the post. Not sure the "customer" records would have a problem, but the static GSI partition keys for orders, products, and suppliers could potentially run into issues.

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