

In the case of relational databases, Postgres reigns supreme, particularly within the cloud. Nonetheless, operating the open supply database within the fashionable cloud method leaves one thing to be desired. That’s the performance hole that NewSQL database veteran Nikita Shamgunov is hoping to fill along with his newest startup, Neon.
Shamgunov was a co-founder and later CEO of MemSQL, a distributed SQL database that may concurrently deal with analytical and transactional workloads. Now referred to as SingleStore, the super-scalable database continues to efficiently serve the high-end of the market, Shamgunov says. However with regards to the majority of transactional workloads on relational databases, Postgres is the hands-down winner.
“Postgres is principally unstoppable at this level,” Shamgunov tells Datanami in an interview final week. “It’s turning into Linux.”
The info definitely again that up. Final month, Postgres was named the database of the yr for 2023 by DB-Engines.com. The database was the primary database in Stack Overflow’s 2023 Developer Survey, besting database stalwarts MySQL, SQL Server, and MongoDB.
Its plug-in structure permits Postgres to rapidly and simply adapt to deal with totally different knowledge varieties like time-series, geolocation, and vector embeddings, which has made it the Swiss Military Knife of relational databases. All that’s lacking is a column retailer for analytical workloads, however “the Postgres ecosystem will in all probability finally remedy that,” Shamgunov says.

Postgres has emerged because the primary database within the cloud (monticello/Shutterstock)
All three cloud giants provide Postgres as a service, however AWS is the undisputed heavyweight champion on this struggle. In line with Shamgunov, Amazon Aurora pulls in $4 billion per yr whereas Amazon Relational Database Service (RDS) pulls in $7 billion per, amounting to 11% of a world database market that Gartner estimated was value $100 billion in 2023. “Every thing else is only a rounding error,” says the previous Microsoft SQL Server engineer.
Whereas Postgres dominates within the cloud, the database does so with out the kind of options and capabilities one would anticipate at the moment, Shamgunov says. Corporations like AWS and Google Cloud have performed the engineering work to separate compute and storage of their Postgres choices, which permits them to ship serverless Postgres cases that may be spun up and spun down on a dime. Nonetheless, these usually are not open supply choices. On the finish of 2024, Aurora Serverless V1, which spins all the way in which right down to zero, might be put out to pasture, to clients’ nice chagrin.
What the database market lacks, Shamgunov says, was a serverless Postgres providing that builders can simply spin up within the cloud whereas concurrently being open supply and sustaining full compatibility with the large open supply Postgres ecosystem. That’s basically what has been delivered with Neon, which Shamgunov co-founded in 2021 with Postgres contributor Heikki Linnakangas and Stas Kelvich.
The startup, which got here out of stealth in June 2022, targeted early on the laborious engineering work of separating compute from storage within the database, which is important to ship a serverless expertise. The corporate developed its personal storage engine for Postgres that allows it to make use of Amazon S3 as backend community storage for the database, with out introducing incompatibility within the knowledge stream.
“What we’ve performed is we’ve separated that storage and moved it into community connected storage that’s customized constructed for Postgres,” Shamgunov says. “The API shouldn’t be a file system API. It’s the API that Postgres understands.”

Nikita Shamgunov is the CEO and co-founder of Neon
The Neon storage engine plugs into Postgres at “an extremely low degree,” which is a key issue enabling full Postgres compatibility, Shamgunov says.
The Neon storage engines consists of two components: The Pageserver element, the scalable storage backend that sits subsequent to the compute nodes, and the Safekeepers, which function a redundant write forward log (WAL) service that receives WALs from the compute node and shops it durably till it’s been processed by the Pageserver and uploaded to cloud server, in line with the Neon GitHub web page.
So long as the Neon storage engine returns the information throughout the timeframe anticipated, the question engine doesn’t know the distinction, Shamgunov says. That signifies that nothing else within the Postgres stack is impacted, and all of the of Postgres extensions and functions simply work, he says.
“It’s tremendous vital for us be 100% appropriate with Postgres,” he provides, “and in addition place ourselves as Postgres, not another database.”
This method brings a number of advantages, beginning with virtually limitless scalability, Shamgunov says. Since Neon is constructed upon a shared-storage structure versus the shared-nothing architectures that different Postgres-compatible databases use, it scales principally linearly based mostly on what number of learn replicas you’ve got, he says.
“With shared-storage system like us, AWS Aurora, and [Google Cloud’s] AlloyDB, your compute for every question is a single node compute,” Shamgunov explains. “You’ll be able to have a number of learn replicas there, however every particular person question is processed by a single node compute. However that compute is connected to storage, and storage is distributed, so you may principally push your IOPS onto the distributed storage. Now are your IOPS are sort of infinite.”
Builders additionally profit from this method, Shamgunov says. Developer actions like cloning or branching a database are comparatively trivial acts, because of the serverless attribute of Neon. That makes Neon a lot simpler to work with for builders, he says.
“Whenever you take a look at databases at the moment, they’re nowhere to be discovered there. They’re not constructed for contemporary cloud consumption they usually’re not constructed from fashionable developer lifecycle,” Shamgunov says. “The foundational characteristic of that’s the potential to department. Similar to Git means that you can department issues, Neon means that you can department issues. So you may have a database in manufacturing and the database is the URL. So we have now a URL, which represents your database within the cloud. You’ll be able to department it. Now you’ve got a distinct URL and also you immediately have a full copy of that knowledge with a with a separate endpoint, which is remoted additionally.”
When a developer builds an software, they will department the database on each pull request and even on each commit, the Neon CEO says. “So now you’ve got breadcrumbs,” he says. “You’ll be able to construct remoted environments, which for those who don’t have that characteristic, it’s extremely costly.” Neon is built-in with GitHub and Vercel for supply code administration, and its API can simply be integrated right into a CI/CD pipeline utilizing a software like Jenkins, Shamgunov says.
Microsoft affords comparable developer-centric capabilities with SQL Server Hyperscale, says Shamgunov, who beforehand labored on the SQL Server staff. Nonetheless, that database shouldn’t be appropriate with Postgres, which places it at a drawback in at the moment’s database market.
The Neon database is out there underneath a permissive Apache 2.0 license from the Neon GitHub mission, which sports activities greater than 11,000 stars. Customers are free to obtain the supply code and compile their very own Postgres database. Snowflake has even adopted open supply Neon into Snowpark, Shamgunov says.
Along with the open supply bits, the corporate can be providing an enterprise model of Neon that it hosts for purchasers within the cloud, a la the MongoDB or Databricks fashions, he says. “That is Mongo Atlas for Postgres,” he says.
Alternatively, builders can spin up their very own hosted database underneath the Neon Free Tier, which is obtainable as a technical preview. Free Tier clients are allowed one Neon mission with as much as 10 branches, with 3GB of storage per department. Neon is at the moment managing greater than 500,000 database environments, the corporate says.
Shamgunov has lastly constructed a database that retains what he believes are the 2 most important traits {that a} fashionable database will need to have: a cloud structure, which delivers scalability, and open supply, which removes lock-in (or worry of lock-in). SingleStore/MemSQL had cloud scalability, however that database was by no means made open supply. Amazon Aurora, the $4 billion Postgres juggernaut, equally shouldn’t be open supply, makes it weak to Postgres adopters who demand openness, Shamgunov says.
With a lot momentum developed in such a short while, the longer term definitely seems vivid for Neon. The corporate isn’t worthwhile but, but it surely’s signing up new customers at a speedy fee, with the hope that it’ll convert them into regular paying clients. The corporate to date has raised $104 million throughout 5 rounds, together with a $46 million Sequence B in August 2023 that was led by Menlo Ventures with participation by the enterprise arms of Databricks, Snowflake, and Google.
“This structure is simply the correct one, after which worth begins getting layered on that structure like Lego bricks,” Shamgunov says. “It’s closely impressed by Amazon Aurora, however consider it like V3 of Aurora. If V1 storage is Aurora, V2 storage is Microsoft SQL Server Hyperscale, then V3 is a re-implementation that takes all of the learnings from these two programs and comes up with a contemporary implementation of storage.”
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