What a Cloud Data Engineer Does and Why You Need One

Cloud data engineer responsibilities

A cloud data engineer is essentially the builder (and caretaker) of cloud data systems. This requires technical skills, practical experience, and an understanding of business needs.

Main responsibilities include:

• Building and managing data pipelines: Develops workflows that manage data across cloud platforms. Requires essential skills in SQL, Python, and data modeling.
• Optimizing cloud storage and databases: Configures databases for effective querying and storage. Uses BigQuery, Snowflake, or AWS Redshift for cloud-based data warehousing.
• Ensuring data security and compliance: Implements encryption, access controls, and security best practices to protect sensitive data. Knowledge of GDPR, HIPAA, and SOC 2 is essential.
• Automating data workflows: Uses tools like Apache Airflow or AWS Lambda to streamline data movement and reduce manual intervention.
• Collaborating with analysts and data scientists: Structures data for easy access by analytics teams. Requires knowledge of structured and unstructured data formats.

Cloud data engineers keep business operations running by ensuring that cloud data is fast and reliable. 

1. To handle growing data without slowing down

If your data infrastructure isn’t built to handle growth, queries take longer, dashboards lag, and reports become unreliable.

A cloud data engineer designs scalable data pipelines that keep your systems running smoothly, no matter how much data flows in. Without one, you risk slow decision-making and frustrated teams who can’t access the insights they need in real time.

2. To stop overspending on cloud storage

More than half of organizations exceed their cloud budgets, often because they store more data than expected or move too many applications to the cloud without a plan.

Cloud data engineers help optimize storage costs by setting up lifecycle policies, compressing data efficiently, and eliminating unnecessary duplication. Without these measures, you could be paying for storage you don’t need—or worse, facing unexpected costs that eat into your bottom line.

3. To automate data workflows and free up time

If your analytics team spends hours manually pulling reports, cleaning data, or fixing broken processes, you’re losing valuable time.

A cloud data engineer automates data workflows and makes sure that data moves seamlessly from source to storage, reducing manual work and minimizing errors. Without automation, your team will be stuck doing repetitive tasks instead of focusing on core operations.

4. To keep customer and business data secure

In 2024, a data breach cost an average of $4.8 million. Simply relying on cloud providers’ default security settings isn’t enough—you need someone who understands how to strengthen your cloud infrastructure.

A cloud data engineer sets up access controls, encryption, and monitoring systems to protect sensitive data. They work well alongside a cloud engineer to maintain overall cloud infrastructure security. 

Without proper safeguards, businesses risk breaches, fines, and loss of customer trust.

5. To make sense of data from different sources

Data flows in from multiple sources—CRMs, sales platforms, financial software, customer support systems, and various operational tools. 

A cloud data engineer integrates these sources into a central system. Without proper implementation, data gets siloed, leading to fragmented reports and poor decision-making. 

When systems don’t communicate, businesses miss out on valuable information.

Hire an in-office employee

Hiring an in-office cloud data engineer means bringing someone onto your team as a full-time employee on-site. This is ideal for companies that already have solid operations and those that require hands-on infrastructure management.

However, the US data talent pool is limited, making it hard to compete with larger companies for talent. Hiring a cloud data engineer locally is also expensive due to high US salaries and living costs.

But if you need someone physically present and can afford the costs, an in-house option may be worth considering.

Find an offshore remote long-term contractor/employee

If hiring locally is too challenging and expensive, hiring a remote data engineer offshore (outside the US) gives you access to a global talent pool at significantly lower costs. 

Salaries for data engineers in Latin America, for instance, typically come in at 30–70% less than their US counterparts while offering comparable skills and expertise. 

The remote approach works particularly well for cloud data engineering since everything happens digitally anyway. You’ll benefit from cost savings while still getting the specialized skills you need.

Just remember to prioritize candidates with strong communication skills and remote work experience. The best offshore data engineers compensate for physical distance with excellent documentation, clear communication, and reliability that makes the distance irrelevant.

Outsource to a third-party specialist company

Instead of hiring an individual, you can outsource your cloud data engineering to a specialized third-party provider. This involves contracting an external company to handle your cloud data needs.

Outsourcing is ideal for businesses that need on-demand expertise. It’s a great option if your company doesn’t have the resources to maintain an in-house data team but still needs access to high-level cloud engineering skills.

As outsourcing often means less direct control over your data processes, it’s important to find a trusted provider.

Work with freelance cloud data engineers

For businesses that need short-term assistance or just a few hours of work done per week, hiring a freelance cloud data engineer can be a practical solution. Freelance cloud data engineers are independent contractors who can handle specific parts of your data operations, like data migration or troubleshooting performance issues.

This option is cost-effective for small businesses or startups that don’t need a full-time hire or are still testing the waters. However, freelancers may juggle multiple clients, so be sure they meet your availability requirements.