Azure Platform for Data Engineers(part-1)

Over the last 30 years, we’ve seen an exponential increase in the number of devices and software that generate data to meet current business and user needs. Businesses store, interpret, manage, transform, process, aggregate, and report this data to interested parties. These parties include internal management, investors, business partners, regulators, and consumers.

Data consumers view data on PCs, tablets, and mobile devices that are either connected or disconnected. Consumers both generate and use data. They do this in the workplace and during leisure time with social media applications. Business stakeholders use data to make business decisions. Consumers use data to make decisions such as what to buy, for example. Thanks to AI, Azure Machine Learning can now both consume data and make decisions the way humans do.

Data forms include text, stream, audio, video, and metadata. Data can be structured, unstructured, or aggregated. For structured databases, data architects define the structure (schema) as they create the data storage in platform technologies such as Azure SQL Database and Azure SQL Data Warehouse. For unstructured (NoSQL) databases, each data element can have its own schema at query time. Data can be stored as a file in Azure Blob storage or as NoSQL data in Azure Cosmos DB or Azure HDInsight.

Data engineers must maintain data systems that are accurate, highly secure, and constantly available. The systems must comply with applicable regulations such as GDPR (General Data Protection Regulation) and industry standards such as PCI DSS (Payment Card Industry Data Security Standard). International companies might also have special data requirements that conform to regional norms such as the local language and date format. Data in these systems can be located anywhere. It can be on-premises or in the cloud, and it can be processed either in real time or in a batch.

Azure provides a comprehensive and rich set of data technologies that can store, transform, process, analyze, and visualize a variety of data formats in a secure way. As data formats evolve, Microsoft continually releases new technologies to the Azure platform. Azure customers can explore these new technologies in preview mode. Using the on-demand Azure subscription model, customers can minimize costs, paying only for what they consume and only when they need it.

Understand the difference between on-premises and cloud-based servers

On-premises environments

Computing environment

On-premises environments require physical equipment to execute applications and services. This equipment includes physical servers, network infrastructure, and storage. The equipment must have power, cooling, and periodic maintenance by qualified personnel. A server needs at least one operating system (OS) installed. It might need more than one OS if the organization uses virtualization technology.


Each OS that’s installed on a server might have its own licensing cost. OS and software licenses are typically sold per server or per CAL (Client Access License). As companies grow, licensing arrangements become more restrictive.


On-premises systems require maintenance for the hardware, firmware, drivers, BIOS, operating system, software, and antivirus software. Organizations try to reduce the cost of this maintenance where it makes sense.


When administrators can no longer scale up a server, they can instead scale out their operations. To scale an on-premises server horizontally, server administrators add another server node to a cluster. Clustering uses either a hardware load balancer or a software load balancer to distribute incoming network requests to a node of the cluster.

A limitation of server clustering is that the hardware for each server in the cluster must be identical. So when the server cluster reaches maximum capacity, a server administrator must replace or upgrade each node in the cluster.


High-availability systems must be available most of the time. Service-level agreements (SLAs) specify your organization’s availability expectations.

System uptime can be expressed as three nines, four nines, or five nines. These expressions indicate system uptimes of 99.9 percent, 99.99 percent, or 99.999 percent. To calculate system uptime in terms of hours, multiply these percentages by the number of hours in a year (8,760).

Uptime levelUptime hours per yearDowntime hours per year
99.9%8,751.24(8,760 – 8,751.24) = 8.76
99.99%8,759.12(8,760 – 8,759.12) = 0.88
99.999%8,759.91(8,760 – 8,759.91) = 0.09

For on-premises servers, the more uptime the SLA requires, the higher the cost.


Hundreds of vendors sell physical server hardware. This variety means server administrators might need to know how to use many different platforms. Because of the diverse skills required to administer, maintain, and support on-premises systems, organizations sometimes have a hard time finding server administrators to hire.

Multilingual support

In on-premises SQL Server systems, multilingual support is difficult and expensive. One issue with multiple languages is the sorting order of text data. Different languages can sort text data differently. To address this issue, the SQL Server database administrator must install and configure the data’s collation settings. But these settings can work only if the SQL database developers considered multilingual functionality when they were designing the system. Systems like this are complex to manage and maintain.

Total cost of ownership

The term total cost of ownership (TCO) describes the final cost of owning a given technology. In on-premises systems, TCO includes the following costs:

  • Hardware
  • Software licensing
  • Labor (installation, upgrades, maintenance)
  • Datacenter overhead (power, telecommunications, building, heating and cooling)

It’s difficult to align on-premises expenses with actual usage. Organizations buy servers that have extra capacity so they can accommodate future growth. A newly purchased server will always have excess capacity that isn’t used. When an on-premises server is at maximum capacity, even an incremental increase in resource demand will require the purchase of more hardware.

Because on-premises server systems are very expensive, costs are often capitalized. This means that on financial statements, costs are spread out across the expected lifetime of the server equipment. Capitalization restricts an IT manager’s ability to buy upgraded server equipment during the expected lifetime of a server. This restriction limits the server system’s ability to accommodate increased demand.

In cloud solutions, expenses are recorded on the financial statements each month. They’re monthly expenses instead of capital expenses. Because subscriptions are a different kind of expense, the expected server lifetime doesn’t limit the IT manager’s ability to upgrade to meet an increase in demand.

Cloud environments

Computing environment

Cloud computing environments provide the physical and logical infrastructure to host services, virtual servers, intelligent applications, and containers for their subscribers. Different from on-premises physical servers, cloud environments require no capital investment. Instead, an organization provisions service in the cloud and pays only for what it uses. Moving servers and services to the cloud also reduces operational costs.

Within minutes, an organization can provision anything from virtual servers to clusters of containerized apps by using Azure services. Azure automatically creates and handles all of the physical and logical infrastructure in the background. In this way, Azure reduces the complexity and cost of creating the services.

On-premises servers store data on physical and virtual disks. On a cloud platform, storage is more generic. Diverse storage types include Azure Blob storage, Azure Files storage, and Azure Disk Storage. Complex systems often use each type of storage as part of their technical architecture. With Azure Disk Storage, customers can choose to have Microsoft manage their disk storage or to pay a premium for greater control over disk allocation.


In the cloud, Microsoft manages many operations to create a stable computing environment. This service is part of the Azure product benefit. Microsoft manages key infrastructure services such as physical hardware, computer networking, firewalls and network security, datacenter fault tolerance, compliance, and physical security of the buildings. Microsoft also invests heavily to battle cybersecurity threats, and it updates operating systems and firmware for the customer. These services allow data engineers to focus more on data engineering and eliminating system complexity.


Scalability in on-premises systems is complicated and time-consuming. But scalability in the cloud can be as simple as a mouse click. Typically, scalability in the cloud is measured in compute units. Compute units might be defined differently for each Azure product.


Azure duplicates customer content for redundancy and high availability. Many services and platforms use SLAs to ensure that customers know the capabilities of the platform they’re using.


Cloud systems are easy to support because the environments are standardized. When Microsoft updates a product, the update applies to all consumers of the product.

Multilingual support

Cloud systems often store data as a JSON file that includes the language code identifier (LCID). The LCID identifies the language that the data uses. Apps that process the data can use translation services such as the Bing Translator API to convert the data into an expected language when the data is consumed or as part of a process to prepare the data.

Total cost of ownership

Cloud systems like Azure track costs by subscriptions. A subscription can be based on usage that’s measured in compute units, hours, or transactions. The cost includes hardware, software, disk storage, and labor. Because of economies of scale, an on-premises system can rarely compete with the cloud in terms of the measurement of the service usage.

The cost of operating an on-premises server system rarely aligns with the actual usage of the system. In cloud systems, the cost usually aligns more closely with the actual usage.

In some cases, however, those costs don’t align. For example, an organization will be charged for a service that a cloud administrator provisions but doesn’t use. This scenario is called underutilization. Organizations can reduce the costs of underutilization by adopting a best practice to provision production instances only after their developers are ready to deploy an application to production. Developers can use tools like the Azure Cosmos DB emulator or the Azure Storage emulator to develop and test cloud applications without incurring production costs.

Lift and shift

When moving to the cloud, many customers migrate from physical or virtualized on-premises servers to Azure Virtual Machines. This strategy is known as lift and shift. Server administrators lift and shift an application from a physical environment to Azure Virtual Machines without rearchitecting the application.

The lift-and-shift strategy provides immediate benefits. These benefits include higher availability, lower operational costs, and the ability to transfer workloads from one datacenter to another. The disadvantage is that the application can’t take advantage of the many features available within Azure.

Consider using the migration as an opportunity to transform your business practices by creating new versions of your applications and databases. Your rearchitected application can take advantage of Azure offerings such as Cognitive Services, Bot Service, and machine learning capabilities.


As a data engineer you’ll extract raw data from a structured or unstructured data pool and migrate it to a staging data repository. Because the data source might have a different structure than the target destination, you’ll transform the data from the source schema to the destination schema. This process is called transformation. You’ll then load the transformed data into the data warehouse. Together, these steps form a process called extract, transform, and load (ETL).

A disadvantage of the ETL approach is that the transformation stage can take a long time. This stage can potentially tie up source system resources.

An alternative approach is extract, load, and transform (ELT). In ELT, the data is immediately extracted and loaded into a large data repository such as Azure Cosmos DB or Azure Data Lake Storage. This change in process reduces the resource contention on source systems. Data engineers can begin transforming the data as soon as the load is complete.

ELT also has more architectural flexibility to support multiple transformations. For example, how the marketing department needs to transform the data can be different than how the operations department needs to transform that same data.

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