In 2013 AWS augmented its core cloud offering with the introduction of Redshift, a ‘data warehousing as a service’ solution. The Redshift solution bundled compute and storage, reducing the ability to meet individual customer needs to scale either component separately in a cost efficient manner. Not having the option to unbundle compute and storage was inconsistent with the flexible nature that cloud had become known for.

Snowflake’s solution separated storage, compute, and services into separate layers, allowing them to scale independently and achieve greater cost efficiencies. By offering flexibility it was able to better address the requirements of a wider range of customers - who had previously been limited to the more restrictive bundled options, like Redshift.