Modern Data Architecture: Strategies and Best Practices

In today’s data-intensive landscape, organizations face increasing pressure to build architectures that can handle diverse workloads, from real-time analytics to batch processing, all while maintaining high performance, reliability, and governance. Traditional data warehousing approaches are no longer sufficient for modern demands, especially when managing terabytes of data from multiple sources that require near-instantaneous processing. This blog post explores how to architect a modern data platform that addresses these challenges and provides a solid foundation for both operational and analytical workloads.

Core Components of a Modern Data Architecture

A well-designed data architecture in 2025 integrates several critical components that work together seamlessly. The foundation typically includes:

  1. Ingestion Layer: Handles data collection from various sources
  2. Storage Layer: Provides durable and efficient storage options
  3. Processing Layer: Transforms and enriches data
  4. Serving Layer: Makes data available for consumption
  5. Governance Layer: Ensures data quality, security, and compliance

Let’s explore how these components interact in a modern architecture:

Architectural Patterns Comparison

PatternStrengthsWeaknessesBest Use Cases
Data LakehouseCombines warehouse structure with lake flexibilityHigher complexityOrganizations needing both ML and BI capabilities
Data MeshDomain-oriented, decentralized ownershipCoordination overheadLarge enterprises with diverse business domains
Lambda ArchitectureHandles both batch and streamingDuplicated logic in two pathsApplications requiring both historical and real-time views
Kappa ArchitectureSingle processing path (streaming)Potentially higher resource needsReal-time analytics applications
Medallion ArchitectureClear data quality progressionCan introduce latencyOrganizations with strong governance requirements

Implementing Real-Time, Batch, and Event-Driven Pipelines

Modern data platforms must support multiple processing paradigms to address different use cases and latency requirements. Here’s how to approach this crucial aspect:

Real-Time Processing

For streaming data that requires immediate processing, technologies like Apache Kafka and Apache Flink have emerged as industry standards. The key is to design systems that can handle high-volume data flows with minimal latency.

A typical Kafka-based real-time processing setup involves:

# Example Kafka topic configuration with detailed parameters
kafka-topics --create --bootstrap-server localhost:9092 \
  --replication-factor 3 \                          # Store 3 copies of each message for fault tolerance
  --partitions 8 \                                  # Split the topic into 8 partitions for parallel processing
  --topic market-data \                             # Name of the topic to store market data events
  --config retention.ms=86400000 \                  # Keep data for 24 hours (in milliseconds)
  --config min.insync.replicas=2                    # Require at least 2 replicas to be in sync for writes

For processing this data with Flink, you might implement stateful operations like this:

// Example Flink stateful processing
// First, create a stream from Kafka consumer source
DataStream<MarketEvent> marketEvents = env.addSource(kafkaConsumer);

// Now build the processing pipeline
marketEvents
    .keyBy(event -> event.getSymbol())              // Group events by trading symbol (e.g., BTC-USD)
    .window(TumblingEventTimeWindows.of(Time.seconds(5)))  // Process in 5-second windows based on event time
    .process(new MarketAggregationFunction())       // Apply custom aggregation logic to each window
    .addSink(new AlertingSink());                   // Send results to alerting system for monitoring

Batch Processing

While real-time processing addresses immediate needs, batch processing remains essential for complex analytics, historical analysis, and tasks that don’t require immediate results. Apache Spark continues to be a leading solution, now enhanced with projects like Apache Iceberg for table format management.

To implement efficient batch processing with Iceberg tables:

# PySpark with Iceberg example - Setting up a Spark session with Iceberg integration
spark = SparkSession.builder \
    .appName("Batch Processing") \
    .config("spark.sql.extensions", "org.apache.iceberg.spark.extensions.IcebergSparkSessionExtensions") \  # Enable Iceberg extensions
    .config("spark.sql.catalog.iceberg", "org.apache.iceberg.spark.SparkCatalog") \  # Register Iceberg catalog
    .config("spark.sql.catalog.iceberg.type", "hadoop") \  # Use Hadoop catalog type
    .config("spark.sql.catalog.iceberg.warehouse", "s3://data-warehouse/iceberg") \  # S3 location for tables
    .getOrCreate()

# Time travel query - One of Iceberg's powerful features
# This query retrieves cryptocurrency market data as it existed on April 1, 2025
df = spark.sql("""
SELECT * FROM iceberg.trading.market_data 
TIMESTAMP AS OF '2025-04-01 00:00:00'  -- Point-in-time query capability
WHERE symbol = 'BTC-USD'                -- Filter for Bitcoin-USD trading pair
""")

Event-Driven Processing

Event-driven architectures promote loose coupling and scalability by responding to events rather than following a prescribed workflow. This approach is particularly valuable for complex business processes and microservices integration.

A sample event-driven pipeline using Apache Kafka and Kafka Streams might look like:

// Kafka Streams topology - Building a data processing pipeline for order validation and routing
StreamsBuilder builder = new StreamsBuilder();      // Initialize the streams builder (core Kafka Streams object)
KStream<String, Order> orders = builder.stream("new-orders");  // Create a stream from the "new-orders" Kafka topic

// Create a new stream of validated orders by applying transformations
KStream<String, ValidatedOrder> validatedOrders = orders
    .filter((key, order) -> order.getAmount() > 0)  // Filter out orders with zero or negative amounts
    .mapValues(order -> validateOrder(order));      // Transform each order through a validation function

// Send the validated orders to a new Kafka topic
validatedOrders.to("validated-orders");             // Write results to the "validated-orders" topic

// Split the stream into multiple streams based on order type (market, limit, other)
KStream<String, ValidatedOrder>[] branches = validatedOrders.branch(
    (key, order) -> order.getType().equals("MARKET"),  // First branch: Market orders
    (key, order) -> order.getType().equals("LIMIT"),   // Second branch: Limit orders
    (key, order) -> true                               // Third branch: All other order types
);

// Send each branch to its own dedicated Kafka topic for specialized processing
branches[0].to("market-orders");                    // Market orders go to dedicated topic
branches[1].to("limit-orders");                     // Limit orders go to dedicated topic
branches[2].to("other-orders");                     // Other order types go to catch-all topic

Storage and Table Formats: The Foundation of Your Architecture

The choice of storage and table formats dramatically impacts query performance, data accessibility, and system flexibility. Modern architectures increasingly leverage open table formats like Apache Iceberg, Delta Lake, or Apache Hudi to provide ACID transactions, time travel capabilities, and schema evolution.

Iceberg, in particular, has gained significant traction due to its performance benefits:

-- Example Iceberg DDL - Creating a trading history table with optimized organization

-- Creating a table with partitioning and sorting for efficient querying
CREATE TABLE analytics.trade_history (
  trade_id BIGINT,                -- Unique identifier for each trade
  symbol STRING,                  -- Trading pair (e.g., BTC-USD, ETH-USD)
  price DECIMAL(18,8),            -- Trade price with 8 decimal precision for cryptocurrency values
  quantity DECIMAL(18,8),         -- Trade quantity with high precision
  trade_time TIMESTAMP,           -- When the trade occurred
  exchange_id STRING,             -- Source exchange (e.g., Coinbase, Binance)
  trade_type STRING               -- Type of trade (e.g., market, limit)
)
USING iceberg                     -- Specifies we're using Apache Iceberg table format
PARTITIONED BY (days(trade_time), exchange_id)  -- Partition strategy for efficient filtering
TBLPROPERTIES (
  'write.format.default' = 'parquet',  -- Store data in columnar Parquet format
  'write.parquet.compression-codec' = 'zstd',  -- Use ZSTD compression for better ratio/performance
  'sort-order' = 'symbol,trade_time DESC'  -- Organize files for faster querying by symbol and time
);

These formats solve several key challenges:

  • Schema Evolution: Add, remove, or modify columns without rebuilding tables
  • Time Travel: Query data as it existed at a specific point in time
  • ACID Transactions: Ensure data consistency even with concurrent writers
  • Partition Evolution: Change partitioning schemes without downtime

Governance and Reliability: Building Trust in Your Data

Data governance isn’t an afterthought but a critical architectural component. Modern data platforms must integrate governance at every level, from ingestion to consumption.

Data Quality Framework

Implement automated data quality checks using tools like Great Expectations:

# Great Expectations data validation example - A framework for validating, documenting, and profiling data
import great_expectations as ge

# Create a validator for your dataset (works with pandas DataFrames, Spark DataFrames, SQL, etc.)
validator = ge.dataset.PandasDataset(df)

# Define and validate expectations - these are assertions about what your data should look like
results = validator.expect_column_values_to_not_be_null("trade_id")  # Every trade must have an ID
validator.expect_column_values_to_be_between("price", 0, 1000000)    # Price must be in a reasonable range
validator.expect_column_values_to_match_regex("symbol", r'^[A-Z]+-[A-Z]+$')  # Symbol format validation

# Save validation results - this documents the data quality and can be used for monitoring
validator.save_expectation_suite(discard_failed_expectations=False)  # Keep track of failed validations

Data Observability

Implement comprehensive monitoring of your data pipelines using tools like Prometheus and Grafana:

# Prometheus alert example - Configuration for monitoring data pipeline freshness
groups:
- name: DataPipelineAlerts                          # Logical grouping of related alerts
  rules:
  - alert: DataFreshnessCritical                    # Alert name - describes the issue
    expr: time() - max(data_last_update_timestamp) by (dataset) > 3600  # Alert if data is >1 hour old
    for: 15m                                        # Only trigger if condition persists for 15 minutes
    labels:
      severity: critical                            # Severity level for routing and prioritization
    annotations:
      summary: "Data freshness critical for {{ $labels.dataset }}"  # Alert summary with dataset name
      description: "Dataset {{ $labels.dataset }} has not been updated in over 1 hour"  # Detailed description

Access Control and Security

Implement fine-grained access controls using tools like Apache Ranger or cloud-native solutions:

-- Example Apache Ranger policy (SQL representation) - Implementing fine-grained access control
-- Apache Ranger helps implement role-based security policies across the data platform

-- Grant read-only access to data analysts, but only for specific exchanges
GRANT SELECT ON TABLE analytics.trade_history 
TO ROLE data_analysts
WHERE exchange_id IN ('Coinbase', 'Binance');  -- Row-level security filtering

-- Grant broader access to data engineers who need to modify the data
GRANT SELECT, INSERT, UPDATE ON TABLE analytics.trade_history 
TO ROLE data_engineers;  -- Full table access for the engineering team

Orchestration: Tying It All Together

Modern data architectures rely on robust orchestration to manage complex workflows and dependencies. Apache Airflow remains a popular choice, now enhanced with features like deferrable operators for better resource utilization.

A sample Airflow DAG for a modern data pipeline might look like:

# Example Airflow DAG with modern patterns - Orchestrating a data pipeline
from airflow import DAG
from airflow.operators.python import PythonOperator
from airflow.providers.apache.spark.operators.spark_submit import SparkSubmitOperator
from airflow.sensors.external_task import ExternalTaskSensor
from airflow.utils.task_group import TaskGroup
from datetime import datetime, timedelta

# Define default parameters for all tasks in the DAG
default_args = {
    'owner': 'data_engineering',             # Team responsible for the pipeline
    'retries': 1,                            # Number of retry attempts on failure
    'retry_delay': timedelta(minutes=5),     # Wait time between retries
    'execution_timeout': timedelta(hours=2)  # Maximum allowed execution time
}

# Create the DAG definition
with DAG(
    'market_data_processing',                        # Unique identifier for this DAG
    default_args=default_args,                       # Apply the default arguments
    description='Process market data using modern patterns',
    schedule_interval='0 */3 * * *',                 # Run every 3 hours (cron format)
    start_date=datetime(2025, 4, 1),                 # When this DAG should start
    catchup=False,                                   # Don't run for historical dates
    tags=['market-data', 'production'],              # Labels for organization
) as dag:
    
    # First task: Run data quality checks before processing
    data_quality_check = PythonOperator(
        task_id='validate_source_data',              # Unique ID for this task
        python_callable=run_data_quality_checks,     # Function to execute
        op_kwargs={'dataset': 'market_data'},        # Arguments for the function
    )
    
    # Group related tasks for parallel processing of different exchanges
    with TaskGroup('process_exchanges') as process_exchanges:
        # Dynamically create a task for each exchange
        for exchange in ['binance', 'coinbase', 'kraken']:
            process_exchange = SparkSubmitOperator(
                task_id=f'process_{exchange}',        # Generate unique ID for each exchange
                application='/jobs/process_exchange.py',  # Spark job to submit
                conf={'spark.dynamicAllocation.enabled': 'true'},  # Spark config
                application_args=[exchange, '{{ ds }}'],  # Pass exchange name and execution date
                packages='org.apache.iceberg:iceberg-spark-runtime-3.3_2.12:1.1.0',  # Required dependencies
            )
    
    # Final task: Aggregate data from all exchanges
    aggregate_data = SparkSubmitOperator(
        task_id='aggregate_market_data',
        application='/jobs/aggregate_market_data.py',
        conf={'spark.sql.shuffle.partitions': '200'},  # Optimize shuffle performance
        application_args=['{{ ds }}'],                 # Pass execution date to job
    )
    
    # Define the execution order using operators
    data_quality_check >> process_exchanges >> aggregate_data  # Linear workflow

Conclusion: Toward a Future-Proof Data Architecture

Building a modern data architecture is not a one-time effort but an ongoing journey of refinement and adaptation. The key to success lies in creating a flexible foundation that can evolve with changing business needs and technological advancements. By focusing on the core components outlined in this post—ingestion, storage, processing, serving, and governance—organizations can build data platforms that deliver both immediate value and long-term sustainability.

The most successful implementations share common characteristics: they embrace open formats and standards, prioritize automation, maintain clear data governance, and balance performance with flexibility. By following these principles, your data architecture can support both current and future analytical needs, from traditional business intelligence to advanced machine learning.

Emerging Technologies in Data Processing

As the data landscape evolves, new technologies continue to emerge that push the boundaries of what’s possible with modern data architectures. Here are some cutting-edge tools worth exploring:

Daft: A Rust-Powered Engine for Multimodal Data

One particularly promising technology is Daft, a distributed query engine for large-scale data processing implemented in Rust. What makes Daft stand out in the crowded data processing space is its unique capabilities:

  • Multimodal Data Support: Beyond traditional structured data, Daft can efficiently process complex data types including images, embeddings, and Python objects.
  • Interactive Python API: Offers a familiar dataframe interface with lazy evaluation for efficiency.
  • High-Performance I/O: Achieves exceptional performance for cloud storage integration, especially with S3.
  • Built on Apache Arrow: Leverages the Arrow in-memory format for efficient data interchange.
  • Distributed Processing: Integrates with Ray for scaling across multiple machines with thousands of CPUs/GPUs.

Here’s a sample of how Daft can process image data in a distributed fashion:

# Load images from an S3 bucket with Daft
import daft

# Create a dataframe from image files stored in S3
df = daft.from_glob_path("s3://data-bucket/images/*")

# Download and decode images in a distributed manner
df = df.with_column("image", df["path"].url.download().image.decode())

# Process the images (e.g., resize to thumbnails)
df = df.with_column("thumbnail", df["image"].image.resize(32, 32))

# Execute the pipeline
result = df.collect()

This approach makes Daft particularly well-suited for modern data architectures that need to handle diverse data types while maintaining high performance.

Further Reading

If you’re looking to explore real-world implementations or contribute to the open-source ecosystem, here are some highly relevant projects and organizations that exemplify modern data architecture patterns:

Project/OrgDescriptionTechnologiesLink
Apache IcebergOpen table format for huge analytic datasets, supporting ACID, schema evolution, and time travelIceberg, Spark, Flink, Trino, PrestoGitHub
Apache KafkaDistributed event streaming platform for high-throughput, fault-tolerant data pipelinesKafka, Kafka Streams, ConnectGitHub
Apache FlinkScalable stream and batch data processing with advanced stateful and fault-tolerant featuresFlink, Stateful Stream ProcessingGitHub
DuckDBIn-process analytical database for fast, in-memory analytics and ad hoc queriesDuckDB, In-Memory AnalyticsGitHub
dbt (Data Build Tool)Analytics engineering workflow for transforming data in the warehousedbt, SQL, Data TransformationGitHub
DataHubMetadata platform for data discovery, governance, and observabilityDataHub, Metadata, GovernanceGitHub
OpenMetadataOpen standard for metadata and data governance across the stackOpenMetadata, GovernanceGitHub
PolarsFast DataFrame library in Rust for lightning-fast analytics on a single nodePolars, Rust, DataFramesGitHub
TrinoDistributed SQL query engine for big data analytics, often used with Iceberg and other formatsTrino, SQL, Big DataGitHub
Delta LakeOpen-source storage layer bringing ACID transactions to Apache Spark and big data workloadsDelta Lake, Spark, ACIDGitHub
Great ExpectationsLeading open-source tool for data quality and validationData Quality, Validation, PythonGitHub
SupersetModern data exploration and visualization platformVisualization, Analytics, SQLGitHub

These projects provide reference implementations, best practices, and active communities for building robust, scalable, and future-proof data platforms. Reviewing their documentation and architecture diagrams can offer valuable insights for your own designs.