Data Compression for Analytics: Reducing Storage and Improving Performance

Data compression reduces storage costs and can improve query performance by reducing I/O. Learn how compression techniques work for analytical workloads and when to use them.

7 min read·

Data compression reduces the storage footprint of analytical data while often improving query performance. For analytics workloads that scan large amounts of data, compression reduces I/O operations, which typically dominate query execution time.

Understanding compression enables better storage economics and faster queries in analytical systems.

Why Compression Matters for Analytics

Storage Cost Reduction

Analytical datasets grow continuously:

  • Years of historical transactions
  • High-cardinality event data
  • Multiple copies for redundancy
  • Staging, intermediate, and serving layers

Compression multiplies storage budgets - a 5x compression ratio means storing 5 years of data for the cost of 1.

Performance Improvement

Counterintuitively, compression often speeds queries:

  • Storage I/O is slow relative to CPU
  • Reading less data reduces I/O time
  • Decompression is fast with modern algorithms
  • Net effect is usually faster queries

For analytical workloads, compression helps performance.

Network Efficiency

Data moves between systems:

  • Replication across regions
  • Transfers from data lakes to warehouses
  • Query results to clients

Compressed data moves faster.

How Analytical Compression Works

Column-Oriented Storage

Analytics databases store data by column:

Row storage: [id, name, date, amount] [id, name, date, amount] ...
Column storage: [id, id, id, ...] [name, name, name, ...] [date, date, date, ...] ...

Column storage enables better compression because similar values cluster together.

Column Encoding

Before general compression, columns use specialized encodings:

Dictionary encoding: Replace repeated values with integer codes.

Original: ["active", "active", "pending", "active", "closed"]
Dictionary: {0: "active", 1: "pending", 2: "closed"}
Encoded: [0, 0, 1, 0, 2]

Low-cardinality columns compress dramatically.

Run-length encoding: Store repeated values as count + value.

Original: [100, 100, 100, 100, 200, 200, 300]
Encoded: [(4, 100), (2, 200), (1, 300)]

Sorted or clustered data benefits from RLE.

Delta encoding: Store differences between sequential values.

Original: [1000, 1001, 1003, 1004, 1008]
Encoded: [1000, 1, 2, 1, 4]

Sequential or nearly-sequential values compress well.

Bit packing: Use minimum bits needed for value range.

Values 0-15 need only 4 bits instead of 32
1 million values: 4MB instead of 128MB

Small value ranges compress efficiently.

General Compression

After encoding, general compression algorithms apply:

LZ4: Very fast compression and decompression, moderate ratio.

Snappy: Similar to LZ4, optimized for Google workloads.

Zstandard (ZSTD): Better compression ratio, still fast.

Gzip: Maximum compression, slower.

Modern databases typically use LZ4 or Zstandard.

Compression in Practice

Cloud Data Warehouses

Modern warehouses handle compression automatically:

Snowflake: Automatic compression, no configuration needed.

BigQuery: Columnar storage with automatic compression.

Redshift: Column encodings plus LZO/Zstandard compression.

Databricks: Parquet files with Snappy/Zstandard.

Trust the defaults unless you have specific needs.

Data Lakes

Lake storage requires format choices:

Parquet: Columnar format with built-in compression. The standard for analytics.

ORC: Similar to Parquet, common in Hadoop ecosystems.

Avro: Row-based with compression, better for write-heavy.

CSV/JSON: Compress with Gzip, but consider columnar formats instead.

Parquet with Zstandard is the common choice for analytical lakes.

File Formats and Compression

Combine format and compression thoughtfully:

parquet + zstd → Best compression ratio for analytics
parquet + snappy → Faster decompression, good compression
csv.gz → Legacy compatibility, less efficient
json.gz → Semi-structured data, least efficient

Format choice matters more than compression algorithm.

The Codd AI Platform works with compressed data sources seamlessly, providing a semantic layer that delivers consistent business metrics regardless of underlying storage optimizations.

Compression Tradeoffs

Write Performance

Compression adds write overhead:

  • CPU time for compression
  • Possible buffering for better compression
  • Delayed visibility for compressed data

For write-heavy workloads, choose faster compression.

Query Patterns

Different queries benefit differently:

Full scans: Benefit most from compression - less I/O.

Point lookups: May not benefit - still need to read and decompress blocks.

Aggregations: Benefit from compression plus column pruning.

Analytical patterns benefit most.

CPU vs I/O Balance

The tradeoff depends on your bottleneck:

I/O bound: Compression helps - trade CPU for less I/O.

CPU bound: Compression may hurt - adds CPU load.

Balanced: Modern systems are usually I/O bound for analytics.

Monitor to understand your bottleneck.

Compression Ratio vs Speed

Algorithms trade ratio for speed:

AlgorithmCompression RatioCompression SpeedDecompression Speed
LZ4LowerFastestFastest
SnappyLowerVery fastVery fast
ZstandardHigherFastFast
GzipHighestSlowModerate

Choose based on read vs write frequency.

Optimizing Compression

Data Ordering

Sort data for better compression:

  • Group similar values together
  • Enable run-length encoding
  • Improve delta encoding efficiency

Clustering by commonly filtered columns helps both compression and query performance.

Column Selection

Some columns compress better:

High compression: Status codes, categories, dates, sorted keys.

Low compression: UUIDs, hashes, random numbers.

Include compression in data type decisions.

Partition Strategy

Smaller files may compress less efficiently:

  • Compression works better with more data
  • Very small partitions reduce compression ratio
  • Balance partition granularity with compression needs

Avoid over-partitioning.

Encoding Selection

When manual control is available:

  • Dictionary encoding for low-cardinality columns
  • Delta encoding for sorted numeric columns
  • Raw encoding for random data

Match encoding to data characteristics.

Measuring Compression

Compression Ratio

Calculate actual compression:

Compression Ratio = Uncompressed Size / Compressed Size

A ratio of 5 means data is 1/5 the original size.

Storage Analysis

Understand your storage:

  • Total storage versus logical data size
  • Compression ratio by table
  • Storage growth trends
  • Cost per TB with current compression

Storage analysis guides optimization.

Query Impact

Measure compression effect on queries:

  • Query time with different compression
  • I/O bytes read
  • CPU utilization during queries
  • Decompression overhead

Performance testing validates compression choices.

Compression Best Practices

Use Columnar Formats

For analytical data:

  • Parquet is the standard
  • ORC for Hive ecosystems
  • Avro for streaming/write-heavy

Columnar formats enable best analytical compression.

Let Databases Decide

Modern databases optimize well:

  • Automatic encoding selection
  • Adaptive compression
  • Optimized for their architecture

Override defaults only with good reason.

Consider the Full Pipeline

Compression applies throughout:

  • Source extraction
  • Network transfer
  • Landing storage
  • Transformation stages
  • Serving layer

Compress at each stage appropriately.

Monitor and Adjust

Compression isn't set-and-forget:

  • Data characteristics change
  • New data patterns emerge
  • Technology improves
  • Requirements evolve

Review compression effectiveness periodically.

Compression and AI Analytics

Compression supports AI workloads:

Training data: Large training datasets benefit from compression.

Feature storage: Feature stores compress well with encoding.

Model serving: Compressed models reduce memory and transfer.

Inference data: Compressed inputs reduce I/O for predictions.

Context-aware analytics platforms that combine compression with intelligent caching and semantic understanding deliver fast, cost-effective AI-powered analytics at scale.

Getting Started

Organizations optimizing compression should:

  1. Baseline current state: Measure current compression ratios and storage costs
  2. Identify opportunities: Find tables with poor compression or high storage
  3. Choose appropriate formats: Use columnar formats for analytical data
  4. Enable default compression: Let databases optimize automatically
  5. Test performance impact: Verify compression helps (or at least doesn't hurt) queries
  6. Monitor ongoing: Track compression effectiveness over time

Compression is low-hanging fruit for analytics optimization - modern defaults work well, storage costs decrease, and query performance often improves.

Questions

Compression typically improves analytical query performance by reducing I/O - reading less data from storage means faster queries. The CPU cost of decompression is usually much smaller than the I/O savings. However, compression adds overhead for write operations and can slow row-level lookups.

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