Snowflake has announced the acquisition of Crunchy Data, a provider of open-source PostgreSQL solutions, to launch Snowflake Postgres, a managed PostgreSQL database designed for AI and transactional workloads within the Snowflake AI Data Cloud.
The acquisition is expected to close soon. According to CNBC, Snowflake will pay about $250 million to bring Crunchy Data’s operational experience, compliance capabilities, and Postgres expertise into its platform.
According to the company, this move will help meet the rising demand for enterprise-grade Postgres solutions that can support production-scale applications and AI systems.
“Snowflake Postgres will give developers the full power and flexibility of open-source Postgres while providing the uncompromising governance, security and operational standards that enterprises require,” the company said.
Addressing Enterprise Challenges with Postgres
Postgres is widely used by developers due to its open-source foundation, flexibility and support for features like vector embeddings. However, many enterprises face limitations with traditional Postgres deployments in areas such as security, compliance and scale.
“Handling sensitive data, powering essential AI agents and applications, and operating within highly-regulated industries requires proven security, compliance and reliability,” Snowflake said. “These imperatives go far beyond what’s offered by platforms built for quick experimentation and ‘vibe coding’.”
Snowflake Postgres aims to address these challenges by offering a fully managed, secure and compliant Postgres option integrated into the Snowflake platform. This integration is expected to help reduce operational silos and simplify development workflows.
Expanding Use Cases for AI and Transactional Workloads
Once live, Snowflake Postgres will support Postgres-based applications without the need for significant code rewrites, while also enabling new development. “Companies deeply invested in the Postgres ecosystem will be able to migrate and run existing applications on Snowflake without rewriting code,” the company stated.
The new offering will complement Unistore, Snowflake’s solution for unifying transactional and analytical data, and will help expand the use of Snowflake for AI workloads.
Why Crunchy Data?
Crunchy Data brings experience in managed Postgres, Kubernetes-based deployments and compliance-focused infrastructure. “Crunchy Data’s deep commitment to developers and the open source community, combined with their enterprise readiness… makes them the ideal partner,” Snowflake said.
The Crunchy platform includes built-in metrics, connection pooling, logging support and developer tooling. “Their solutions span managed cloud services, Kubernetes deployments and on-premise solutions, demonstrating their versatility,” Snowflake added.
Customer Reaction
Early responses from Snowflake’s customer base reflect interest in the Postgres integration. Chris Burchett, SVP of generative AI at Blue Yonder, said, “Bringing PostgreSQL technology into the Snowflake ecosystem is an opportunity for our development teams to accelerate and simplify benefits for our customers.”
Dan Maloney, CEO of Landing AI, said, “Access to a PostgreSQL database directly within Snowflake has the potential to be incredibly impactful for our team and our customers… This integration is a key building block in making it simpler to build, deploy and run AI applications directly on the Snowflake platform.”
Snowflake stated that the move supports its long-term vision of becoming the central platform for enterprise data workloads.
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