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Why is Fivetran so expensive?

Published in Data Integration Costs 5 mins read

Fivetran can be expensive primarily due to its Monthly Active Rows (MAR) pricing model, which charges based on the volume of data changes, and the comprehensive, managed services it provides.

Understanding Fivetran's Pricing Model: Monthly Active Rows (MAR)

Fivetran's core pricing mechanism, Monthly Active Rows (MAR), often leads to higher-than-anticipated costs. Unlike models that charge purely on the total volume of data replicated, MAR counts every row that is inserted, updated, or deleted within a billing cycle.

Here's why MAR can make Fivetran expensive:

  • Volatility and Unpredictability: The volume of changes (updates and deletes) to existing data can fluctuate significantly. Even if your overall data size isn't growing rapidly, a high frequency of modifications to existing records can generate a massive number of active rows. This can lead to unexpected and sudden spikes in your monthly bill, making cost forecasting challenging.
  • Backfills and Historical Syncs: Initial data loads or historical backfills for large datasets, especially those with extensive modification histories, can count an enormous number of MARs. Each historical update to a row during the initial sync is tallied, leading to a large one-time cost surge.
  • High-Frequency Updates: Source systems that experience frequent, small updates (e.g., transactional databases, IoT data, rapidly changing CRM records) will naturally produce a high MAR count. Even a single field update on a row counts that row as active for the month.
  • Lack of Cost Predictability: Because costs are tied to changes rather than just net new data, scaling data operations can lead to unpredictable cost increases, making it difficult for businesses to budget accurately for their data integration needs.

Other Factors Contributing to Fivetran's Cost

Beyond the MAR model, several other factors contribute to Fivetran's premium pricing, reflecting the value it delivers:

Extensive Connector Library and Automation

Fivetran offers a vast and growing library of pre-built, fully managed connectors for hundreds of data sources, including databases, SaaS applications, and file storage.

  • Reduced Development Effort: It eliminates the need for teams to build and maintain custom connectors, saving significant engineering time and resources.
  • Automated Schema Evolution: Fivetran automatically detects and adapts to schema changes in source systems, preventing pipeline breaks and ensuring continuous data flow without manual intervention.
  • Reliability and Maintenance: Fivetran takes on the burden of monitoring APIs, managing infrastructure, and handling updates, ensuring connectors remain operational even as source systems evolve.

High Reliability and Data Integrity

Fivetran is designed for high reliability and ensures data accuracy and completeness, which are critical for analytics and decision-making.

  • Automatic Error Handling: It includes robust mechanisms for retries, error recovery, and idempotent loading, preventing data loss and ensuring consistency.
  • Guaranteed Delivery: Data is loaded reliably into your destination, even in the face of network issues or source system downtime.

Reduced Operational Overhead

By fully managing the data integration pipeline, Fivetran significantly reduces the operational burden on internal data teams.

  • Managed Infrastructure: Users don't need to provision, scale, or maintain any underlying servers or infrastructure.
  • Monitoring and Alerting: Fivetran handles proactive monitoring and alerting, notifying users of any issues and often resolving them before they impact operations.

Enterprise-Grade Features and Support

Fivetran provides features and support tailored for enterprise-level requirements.

  • Security and Compliance: Robust security protocols, including encryption, compliance certifications (like SOC 2, HIPAA, GDPR), and granular access controls.
  • Dedicated Support: Access to expert support teams for troubleshooting and optimization.
  • Advanced Features: Capabilities such as data blocking, hashing, and custom transformations add to its value proposition.

Strategies to Manage Fivetran Costs

While Fivetran's pricing can be high, several strategies can help manage and optimize your expenditure:

  • Monitor MAR Usage Closely: Regularly review your Fivetran dashboard to understand which connectors and tables are contributing most to your MAR usage. Identify unexpected spikes and their root causes.
  • Filter Unnecessary Data: Configure connectors to sync only the tables and columns you genuinely need. Filtering out irrelevant data can significantly reduce your MAR count.
  • Optimize Sync Frequency: For data sources that don't require real-time updates, consider reducing the sync frequency. Less frequent syncing can mean fewer updates are captured within a billing cycle.
  • Understand Source System Change Patterns: Identify source tables that experience very high update or delete rates. If certain tables are generating excessive MARs due to frequent, minor changes that aren't critical for your analytical needs, consider excluding them or exploring alternative sync methods.
  • Archive or Purge Old Data at Source: If your source system retains historical changes that are no longer needed for current analytics, archiving or purging this data can reduce the volume of rows that Fivetran processes during re-syncs or historical loads.
  • Evaluate Alternatives for Specific Workloads: For very high-volume, unpredictable change data, or when costs become prohibitive, consider evaluating data integration solutions with different pricing models (e.g., based on raw data volume or compute usage) that might offer better cost predictability for specific use cases.

By carefully managing data ingestion and understanding the nuances of the MAR model, organizations can better control their Fivetran expenses.