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What Is Batch Processing?

Batch processing refers to the execution of batch jobs, where data is collected, stored, and processed at scheduled intervals. For decades, batch processing has given organizations an efficient and scalable way to process large volumes of data in predefined batches or groups.

Historically, this approach to handling data has enabled numerous operational and analytics use cases across various industries. Today, however, batch-based business functions like financial transactions, data analytics, and report generation frequently require much faster insights from the underlying data. The increasing demand for near-real and real-time data processing, has led to the rise of data processing technologies like Apache Kafka® and Apache Flink®.

Let's dive into how batch processing works so you can understand the best times to use it and when to combine in with real-time streaming solutions like the Confluent data streaming platform.

An Overview - Batch Processing Challenges & How We Got Here

Over the last several decades, enterprise organizations came to rely on batch processing due to its efficiency in handling large volumes of data. Processing data in batches allowed large businesses to manage and analyze data without overloading their systems, offering a predictable, cost-effective solution for tasks like payroll, inventory management, or financial reporting. However, as technology evolved and the demand for real-time insights grew, the limitations of batch processing became evident, giving rise to data streaming and stream processing as more agile alternatives.

How Batch Processing Works

Traditional thinking views batch processing as fundamentally different from stream processing, since it handles data in discrete chunks rather than real-time streams. To implement batch processing effectively, organizations rely on dedicated software and systems that streamline data ingestion, processing, and output generation. Examples of batch processing include ETL (Extract, Transform and Load) processes, daily backups, and large-scale data transformations.

However, batch processing can also be thought of as a special case of stream processing. It can be argued that all data processing is stream processing and the reasons we started with batch processing are due to technical limitations. Since most if not all data can be reduced to streaming data, all data processing, even batch processing, can be viewed as stream processing.

From Batch Processing to Micro-Batches to Data Streaming

From early days of computing, data has always been stored and processed in batches even when it was generated in a stream. This is largely due to technical limitations in data collection, storage and processing. Over a period of decades, those technical limitations lessened and the cost of storage, compute and networking came down by orders of magnitude. This allowed for the rise of low-cost distributed systems like Apache Hadoop®, which was an early leader in handling large-scale batch processing but often struggled with speed and complexity.

Later, Apache Spark™ emerged as a faster, more flexible alternative, offering in-memory processing that dramatically reduced job execution times, making it suitable for both batch and real-time workloads. However, as the demand for real-time data streams increased, Apache Kafka® was developed at LinkedIn and then open-sourced. Its distributed architecture made it ideal for realizing the high throughput, low latency, and fault tolerance needed for real-time use cases.

Key Differences Between Batch and Stream Processing

Batch processing and stream processing differ primarily in the following areas:

  • Data handling: Batch processing involves collecting and storing data over a period of time, then processing it in large batches at scheduled intervals. On the other hand, using stream processing pipelines built with technologies like Kafka and Apache Flink transform and enrich your data as it's generated, allowing for immediate insights and actions.
  • Latency: Because batch processing involves processing data in bulk, using it incurs higher latency between data generation and processing a delay which may range from hours to days. Stream processing offers low latency, providing near-instantaneous processing and analysis of data as it arrives.
  • Use Cases: Batch processing is ideal for tasks like end-of-day reporting or data warehousing, where immediate processing isn’t critical. Stream processing is suited for event-driven applications and real-time use cases that require real-time analytics, such as fraud detection, recommendation systems, or monitoring of sensor data.
  • Complexity: Batch processing is generally simpler to implement and more cost-effective for large-scale data tasks, while stream processing often involves more complex architectures to manage the continuous flow of data and maintain real-time performance.

Benefits of Real-Time vs Batch Processing

Since batch processing can be thought of as a special case of stream processing, it’s not quite accurate to compare the two. All things being equal, real-time processing is always better than batch processing, since it would not be necessary to divide the data into batches before processing it. Traditionally, though, real-time processing has been expensive and required a high level of computing resources that, lacking the low cost of storage and compute taken advantage of by stream processing. Therefore, stream processing was only seen as practical for high value applications that require immediate feedback or responses, such as fraud detection, anomaly detection, and real-time analytics.

Feature Batch Processing Stream Processing
Data processing Data is processed in batches Data is processed as it is received
Data volume Large amounts of data Small amounts of data
Data latency High latency Low latency
Cost Low cost High cost
Use cases Data consolidation, data analysis, data mining, data backup and recovery Real-time analytics, fraud detection, anomaly detection

How to Know If Batch Is Right for Your Use Cases

Historically, batch processing is a good choice for applications that do not require immediate feedback or response, such as data consolidation, data analysis, data mining, and data backup and recovery. Batch processing has been less expensive than real-time processing and previously required fewer computing resources.

When Batch Processing Is the Best Choice

  • Data consolidation: Batch processing can consolidate data from multiple sources into a single data warehouse or data lake. This can help businesses to improve their data quality and make it easier to analyze data.
  • Data analysis: Batch processing can be used to analyze large amounts of data to identify trends and patterns. This can help businesses to make better decisions about their products, services, and marketing campaigns.
  • Data mining: Batch processing can be used to mine data for hidden patterns and insights. This can help businesses to identify new opportunities and improve their efficiency.
  • Data backup and recovery: Batch processing can be used to back up data regularly. This can help businesses to protect their data from loss or corruption.

Considerations Choosing Between Batch Processing vs Stream Processing

  • Latency: Batch processing has higher latency than real-time processing. Batch jobs are typically pre-deployed and run on a schedule with a looser SLA.
  • Cost: Batch processing was typically less expensive than real-time processing. This is largely because data processing was cost-constrained. Since latency was less of a concern, a long processing time or a wait between scheduled intervals was less of a concern, even though it was never ideal.
  • Scalability: Batch processing is easy to scale than real-time processing since storage and computation can scale separately. Some techniques, such as shared-nothing distributed systems, allow storage and compute to scale together economically, dramatically increasing the size of batches and reducing the processing time and blurring the distinction between a batch and a stream.
  • Use cases: Traditionally batch processing was well-suited for data consolidation, data analysis, data mining, and data backup and recovery while real-time processing is well-suited for fraud detection, anomaly detection, and real-time analytics. But these use cases are often incomplete without each other. For example, even real-time fraud detection often requires data analysis of a consolidated set so the job can determine how anomalous a transaction is compared to a historical pattern traditionally processed in batch, and real-time analytics is often made more useful with historical context provided by batch processing.

When to Choose Real-Time Data Streaming and Stream Processing

The utility of batch processing has always been limited by how much time you can afford to wait. Specifically, the time it takes to process a batch and the interval between schedule batch runs.

When low-latency responses are critical, it's time to choose data processing. Here are some key real-time and event-driven use cases that indicate the need for data streaming and stream processing:

  • Fraud detection: Analyzing transaction data and triggering alerts based on suspicious activities in real-time is vital. For example, identifying potentially fraudulent transactions as soon as a purchase is made.
  • Real-time notifications: Sending immediate alerts when specific conditions are met, such as stock price reaching a certain threshold.
  • Real-time routing: Processing incoming events and routing them to appropriate destinations quickly, such as directing an order to the nearest warehouse.
  • Business process monitoring: Identifying process inefficiencies and productivity bottlenecks in real time by monitoring workflows and sending alerts when critical tasks are blocked or behind schedule.
  • IT system monitoring and threat detection: Continuously monitoring system logs for errors or performance issues to react without delay. Identifying and responding to security threats in real-time by analyzing various security logs and network data streams.

Using the Confluent data streaming platform allows you to unify your batch processing, data streaming, and stream processing workloads. Process streams in real time as well as persist those streams with infinite storage with a complete suite of data integration, processing, and governance features. Ready to get started with a fully managed Kafka service? Sign up today and master the fundamentals with one of our comprehensive developer courses or hands-on webinars.