System Design Guide

Data Lakes: Centralized Repository for All Data

Data lakes are centralized repositories that store vast amounts of structured and unstructured data at any scale. Unlike traditional databases that require defining schemas upfront, data lakes store raw data in its native format, deferring schema definition until the data is read (schema-on-read). This flexibility makes data lakes ideal for big data analytics, machine learning, and consolidating diverse data sources into a single platform.

Core Principles

Store Everything is fundamental to data lakes. Keep all data—operational logs, clickstreams, IoT sensors, transaction records—in original formats without filtering or transformation. Storage is cheap; valuable insights might come from data initially deemed unimportant.

Schema-on-Read defers defining data structure until analysis time. Data lands in the lake in native formats (JSON, CSV, Parquet, Avro), and consumers apply schemas when querying. This flexibility accommodates evolving data structures without costly migrations.

Separation of Storage and Compute allows scaling storage and processing independently. Store petabytes in the lake while spinning up compute clusters only when needed, paying for compute only during analysis.

Centralization consolidates data from numerous sources—applications, databases, third-party APIs—into a single repository. Analysts access all organizational data without navigating multiple silos.

Architecture Layers

Raw Data Layer stores data in original formats immediately after ingestion. This is the source of truth, preserving complete fidelity to original data. No transformation or quality checks occur at this layer.

Curated Data Layer contains cleaned, validated, and transformed data. ETL (Extract, Transform, Load) or ELT (Extract, Load, Transform) processes move data from raw to curated layers, applying business logic and quality rules.

Analytics Layer hosts aggregated, denormalized data structures optimized for specific analytics use cases. This might include dimensional models, aggregated tables, or machine learning features.

Metadata Layer catalogs data in the lake: schemas, lineage, ownership, quality metrics, and access patterns. Without metadata, data lakes become “data swamps” where finding relevant data is impossible.

Storage Technologies

Object Storage (Amazon S3, Azure Data Lake Storage, Google Cloud Storage) is the foundation for most data lakes. Its scalability, durability, and economics make it ideal for storing massive data volumes.

HDFS (Hadoop Distributed File System) was the original data lake storage, still used in on-premise Hadoop clusters. Cloud object storage has largely supplanted HDFS for new data lakes due to operational simplicity and economics.

Delta Lake, Apache Hudi, Apache Iceberg provide ACID transactions and schema evolution atop object storage, addressing traditional data lake limitations around consistency and table management.

Data Formats

Parquet is a columnar format optimized for analytics. It provides excellent compression, efficient columnar scanning, and supports complex nested data structures. Most modern data lakes use Parquet for curated data.

ORC (Optimized Row Columnar) offers similar benefits to Parquet with optimizations for Hive and Spark workloads. It’s common in Hadoop ecosystems.

Avro stores data in row format with embedded schemas, making it suitable for streaming data and scenarios requiring schema evolution. Its row-oriented structure makes it less optimal for analytics than columnar formats.

JSON and CSV store data in human-readable text formats, convenient for ingestion and debugging but inefficient for large-scale analytics. These often serve as raw data formats, converted to Parquet or ORC for analytics.

Processing Frameworks

Apache Spark is the dominant data lake processing engine, providing distributed computing for batch and streaming data. It reads from and writes to data lakes, supporting various formats and optimizations.

Presto/Trino enables SQL queries directly against data lake storage without moving data. It federates queries across multiple data sources, making it ideal for interactive analytics.

Apache Hive provides SQL-like querying for Hadoop ecosystems, compiling queries into MapReduce or Spark jobs for execution.

Dask and Ray offer Python-native distributed computing for data lakes, appealing to data scientists comfortable with Python rather than Spark’s Scala origins.

Governance and Security

Access Control at file and directory levels limits who can read or write data. Integration with IAM (Identity and Access Management) systems provides fine-grained permissions.

Encryption at rest and in transit protects sensitive data. Most cloud data lakes support server-side encryption with managed or customer-provided keys.

Data Lineage tracks data sources, transformations, and dependencies. Understanding where data comes from and how it’s processed is crucial for trust and compliance.

Data Quality monitoring detects anomalies, missing data, or schema drift. Automated quality checks ensure only valid data reaches curated layers.

Data Catalogs (AWS Glue, Azure Purview, Apache Atlas) provide searchable metadata repositories. Analysts discover datasets, understand schemas, and assess data quality before use.

Data Ingestion

Batch Ingestion moves large data volumes on schedules (hourly, daily). ETL tools extract from source systems, transform as needed, and load into the data lake.

Streaming Ingestion continuously ingests real-time data from sources like Kafka, Kinesis, or IoT devices. Streaming frameworks write data to the lake as it arrives, enabling near-real-time analytics.

Change Data Capture (CDC) captures database changes and streams them to the lake, keeping data lakes synchronized with operational databases without full extracts.

APIs and Webhooks pull data from SaaS applications and external APIs, automating data collection from diverse sources.

Data Lake Challenges

Data Swamps occur when data lakes lack organization, metadata, or governance. Without catalogs and quality processes, finding and trusting data becomes impossible.

Performance can suffer with naive queries against object storage. Unlike databases with indexes and query optimization, data lakes require careful partitioning and file organization for performance.

Schema Evolution complicates analyses when data structures change. Tools like Delta Lake, Hudi, and Iceberg address this with schema evolution support.

Cost Control requires monitoring. Storage is cheap, but compute costs can explode with inefficient queries or overprovisioned clusters. Query optimization and auto-scaling are essential.

Best Practices

Organize with Partitions: Partition data by date, region, or other logical dimensions. Partitions enable query engines to scan only relevant data, dramatically improving performance and reducing costs.

Implement Catalog and Metadata Management: Invest in data catalogs from day one. Without discoverable, understandable metadata, data lakes quickly become useless swamps.

Define Data Zones: Separate raw, curated, and analytics layers. This organization clarifies data maturity and quality, helping consumers choose appropriate data for their needs.

Enforce Governance: Implement access controls, encryption, and auditing. Governance isn’t optional; regulatory compliance and data security require it.

Monitor Costs and Performance: Track storage growth, compute utilization, and query performance. Optimize expensive queries and implement lifecycle policies to archive or delete obsolete data.

Use Appropriate Formats: Store raw data in convenient formats but convert to Parquet or ORC for analytics. Columnar formats dramatically improve query performance.

Version Control Transformations: Treat ETL code like application code with version control, testing, and CI/CD. Data transformation logic is critical business logic deserving the same rigor.

Use Cases

Business Intelligence and Analytics: Data lakes centralize data for reporting, dashboards, and ad-hoc analysis. BI tools query curated layers for insights.

Machine Learning: Data lakes store training data, feature stores, and model artifacts. ML pipelines ingest from data lakes, train models, and store results back.

Log Analytics: Application logs, system logs, and audit logs flow to data lakes for security analysis, troubleshooting, and compliance.

Data Science Exploration: Data scientists explore raw data, develop hypotheses, and create prototypes using data lakes as their experimental playground.

Data Archival: Data lakes provide cost-effective long-term storage for compliance, meeting retention requirements economically.

Data lakes enable organizations to harness the value of all their data, structured and unstructured, without premature schema decisions. While challenges like governance and performance require attention, modern data lake technologies address traditional pain points, making data lakes viable for enterprises of all sizes. Understanding data lake principles, architecture, and best practices enables building data platforms that support diverse analytics, machine learning, and data science workloads while remaining flexible and economically sustainable.