Batch Processing vs. Stream Processing: Overview, Differences & Use Cases

Batch Processing vs. Stream Processing: Overview, Differences & Use Cases

There are two primary methods of processing data in today's Big Data landscape: batch processing and stream processing. Batch processing involves processing large volumes of data at once, typically at scheduled intervals. On the other hand, stream processing continually processes data in real time as it arrives. The shift from batch to stream processing in many fields is driven by the growing demand for real-time insights and the increasing volume and speed of data. Stream processing is essential for real-time data analysis and decision-making. In cases where immediate data processing is vital, such as fraud detection in banking or real-time monitoring in manufacturing, stream processing allows for instantaneous data analysis as it arrives, facilitating immediate responses.

In this article, we will clarify what stream processing and batch processing are, their differences, and their respective use cases.

What is batch processing?

Batch processing is a data processing method where data is collected, processed, and stored in predetermined chunks or batches over time. Instead of processing data as it arrives, batch processing waits for a certain amount of data or a specific time before processing it all at once.

This method is especially helpful for tasks involving large data volumes, such as ETL (Extract, Transform, Load) operations, report generation, and data backups.

Batch processing provides benefits like high throughput, efficient resource use, and the capacity to manage large datasets. However, it has the disadvantage of increased latency because insights or results are only available after processing the entire batch. It's usually ideal for tasks where real-time processing isn't critical, and the emphasis is on optimizing data handling and computational efficiency.

What is stream processing?

Stream processing is a data processing method that manages data in real-time as it is received or created. This system continuously processes data as it flows, rather than waiting for data to gather in batches, allowing for immediate insights and actions.

This method is ideal for tasks needing real-time analytics, monitoring, and decision-making, such as fraud detection, live dashboard updates, social media sentiment analysis, and IoT data processing.

Stream processing systems handle high-velocity data streams, ensuring quick processing with low latency. These systems often include complex infrastructure and fault-tolerance mechanisms to manage data as it arrives, which can be out of order or at varying speeds. Stream processing is perfect for applications where timely insights and rapid responses to data are crucial.

key Differences to know

While batch processing involves handling large volumes of data at scheduled intervals, stream processing is concerned with managing data in real time, or near-real time. The optimal choice depends on the specific needs of a project or business requirement.

Let's easily and conveniently understand their differences through the table below.

Batch processingStream processing
The Nature of the DataProcessed gradually in batches.Processed continuously, one event at a time.
Tools & TechnologiesApache Hadoop, Apache Hive, Apache SparkApache Kafka, RisingWave, Apache Fink,
Processing TimeScheduledContinuous.
Hardware RequirementsVaries but can be performed by lower-end systems as well as high-end systems.Demanding while also requiring that the system be operational at all times.
Error HandlingErrors can only be recognized and resolved after the processing is finished.Errors can be recognized and resolved in real-time.
ComplexitySimple, as it deals with finite and predetermined data chunks.Complex, as the data flow is constant and may lead to consistency anomalies
LatencyHigh latency: insights are obtained after the entire batch is processed.Low Latency, with insights being available instantaneously.
Consistency & CompletenessData is typically complete and consistent when processed.Potential for out-of-order data or missing data points.

Use Cases

In this section, we will explore some practical examples of where batch processing and stream processing are applicable.

Batch Processing Scenarios

  • Scenario 1: Generating Financial Statements Companies often generate monthly or quarterly financial summaries, encapsulating transactions, expenses, and earnings. Given the volume of data, these statements aren't made in real time but via batch processing. When the month or quarter ends, the financial data accrued is processed in one batch to create these reports.
  • Scenario 2: Daily Data BackupsIn the IT sector, it's usual to backup data periodically, such as daily or weekly. As the data size can be substantial, real-time backups might be inefficient. Instead, a batch process operates during low-traffic hours, gathering and storing any changes made during the day.

  • Scenario 3: ETL Processes in Data WarehousesExtract, Transform, Load (ETL) processes take data from source systems, morph it into a uniform format, and then transfer it into a data warehouse. Due to the significant data volume and possible transformation complexities, this process usually runs in batches, often nightly or weekly.

Stream Processing Scenarios

  • Scenario 1: Detecting Fraud in Real TimeFinancial institutes and credit card companies use stream processing to spot fraudulent activities. As transactions unfold in real time, systems immediately scrutinize patterns, behaviours, and known fraud indicators. If a transaction seems suspicious (like a sudden high-value purchase abroad), the system can immediately flag it, possibly stopping the transaction or notifying the cardholder.

  • Scenario 2: Social Media Sentiment AnalysisBrands watch social media platforms to measure public opinion about their offerings. With stream processing, they can examine tweets, status updates, or comments in real time, catching trends, feedback, or possible PR storms. For example, if a new product launch receives negative feedback, brands can instantly detect this and respond appropriately.

  • Scenario 3: Real-Time Analytics DashboardsIn sectors where real-time data is vital, like stock trading platforms or e-commerce sites during big sales, analytics dashboards refresh in real time using stream processing. These dashboards show data such as active users, current sales, stock prices, or any other metric needing immediate updates.

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Batch and stream processing represent two distinct approaches in the realm of data management. Batch processing, which operates on pre-set data chunks, is known for its high throughput and is especially useful for tasks such as ETL jobs and data backups. However, it tends to have higher latency, and insights are only available post-processing. > >

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On the other hand, stream processing works with data in a continuous, real-time manner, making it ideal for live analytics and monitoring. This approach, while efficient, demands robust systems to support its continuous operation. > >

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Each approach presents its own set of challenges. Batch processing can demand substantial resources and may lack flexibility, whereas stream processing could encounter consistency issues. The choice between these two largely depends on the specific requirements of the data task. > >

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