Interested in Solving your Challenges with XenonStack Team

Get Started

Get Started with your requirements and primary focus, that will help us to make your solution

Proceed Next

Azure

Kafka vs. Event Hubs vs. Confluent: Best for Fabric Lakehouse

Navdeep Singh Gill | 18 March 2025

Kafka vs. Event Hubs vs. Confluent: Best for Fabric Lakehouse
12:18
Apache Kafka vs. Azure Event Hubs vs. Confluent Cloud

These new next-gen architectures are transforming data ingestion and processing. The business environment is evolving daily, making it very competitive and based on real-time data and analytics integration. While real-time data streaming improves operations effectiveness and allows companies to react swiftly to insights, traditional batch-processing techniques are being replaced. 

Overview of Microsoft Fabric Lakehouse Architecture 

Microsoft Fabric Lakehouse integrates data lakes and warehouses into a unified platform for managing all data types. It addresses challenges like data silos and performance issues.

 

Key components include: 

  • Azure Data Lake Storage: Raw data storage with scalability, making it easily accessible for analytics. 

  • Azure Synapse Analytics and Azure Data Factory: Data processing and transformation services that support ETL and ELT processes. 

  • Azure Purview: A governance platform that maintains data quality and compliance by tracking lineage and cataloguing. 

  • Power BI: A visualization platform that turns data into interactive dashboards and reports for insights that drive action. 

  • Azure Event Hubs: A platform for real-time data streaming, enabling instant analytics on live data feeds. 

Microsoft Fabric Lakehouse architecture

Fig 1: Microsoft Fabric Lakehouse architecture
 

The figure shows Microsoft Fabric Lakehouse architecture, where data is ingested and stored in Azure Data Lake Storage. Azure Data Factory and Synapse Analytics handle processing, Azure Purview ensures data governance, Power BI is used for visualization, and Azure Event Hubs enables real-time data streaming. 

Why messaging/streaming services are critical for data integration 

Messaging and streaming services are essential to current data architecture since they facilitate real-time data consolidation and ongoing processing. They unbind producers and consumers to boost flexibility and scalability, facilitate complex event processing, and provide guaranteed message delivery to avoid losing data.  

 

Reasons Why Messaging/Streaming Services are Critical for Data Integration 

  1. Real-Time Data Processing: Facilitates real-time processing of data to enable timely decision-making. 

  2. Decoupling of Systems: Decouples data producers and consumers, making the system more flexible and scalable. 

  3. Reliability: Ensures delivery of messages, avoiding data loss during outages. 

  4. Scalability: Enables multiple producers and consumers to work independently, thus providing a scalable solution. 

Understanding the Contenders 

Apache Kafka 

Apache Kafka is one of the open-source distributed event streaming platforms used by thousands of companies to create high-performance data pipelines, stream analytics for real-time data processing, and event streaming. The fault-tolerant and scalable architecture of the distributed commit logs within Kafka makes it adaptable to changing user bases. Its main features include: 

  • Partitioning: Data can be distributed across several partitions for parallel processing, enhancing throughput. 

  • Durability: Messages that have persisted on disk, so data is not lost even in case of system failure. 

  • Exactly once semantics:  Fault-tolerant data handling is processed using exactly one semantic, which is required in applications like financial transactions. 

  • Strong ecosystem: It has a versatile community that supports the entire project and thus mitigates issues quickly. 

Azure Event Hubs: Microsoft's Native Streaming Service 

Azure Event Hubs is a big data-managed streaming service by Microsoft that is used for real-time data ingesting. Event Hubs applies best for collecting log data, social media feeds, and IoT streaming. Here are the defining characteristics: 

  • Uninterrupted integration: Native integration with cloud services such as Stream Analytics and Power BI provides unified analytics.    

  • Auto-scaling: Automatically scales up or down for varied data loads while maintaining a constant level of performance.    

  • Multiple protocol support: Ingests from sources based on HTTP, AMQP, and Kafka, providing great interoperability.   

  • Monitoring and analytics: Built-in tools that provide valuable insights on throughput, performance, and errors towards optimizing performance. 

Confluent Cloud: Managed Kafka Service 

Confluent Cloud is a fully managed service for Apache Kafka, simplifying deployment and management in the cloud while offering full Kafka functionality. Key features include: 

  • Global availability: Deployed across multiple cloud regions for resilience and disaster recovery.  

  • Enhanced features: Includes schema registry, ksqlDB for streaming SQL, and various data connectors.  

  • Security and compliance: Offers RBAC, encryption, and regulatory compliance for sensitive applications.  

  • User-friendly interface: Simplifies monitoring and management without requiring extensive DevOps knowledge. 

Key Decision Factors 

When choosing a streaming platform, firms must decide on critical issues affecting their cost structure, operational efficiency, and overall performance on data-led initiatives. The following three sections cover these in more detail: 

 

Integration with Microsoft Fabric:

  • Native Connectors: Availability for Azure services. 

  • Ease of Use: Management simplicity for Microsoft-oriented teams. 

Scalability 

  • Performance Benchmarks: Assess throughput, latency, and data retention. 

Operational Complexity 

  • Management Ease: Maintenance effort required. 

  • Automation Features: Look for automated scaling and backups. 

TCO: Total Cost of Ownership 

Cost Components 

  • Licensing: Open source (no fees) vs. subscription models. 

  • Infrastructure: Self-hosted (high), managed options (low). 

  • Operational Costs: Staffing for self-hosted vs. managed services. 

  • Budgeting for Growth: Estimate future costs based on data growth. 

Decision Framework 

The selection of the appropriate streaming platform is of utmost importance and varies depending on various organization-specific factors, including existing infrastructure, required skill sets, scalability needs, and operational requirements. 

Best data streaming platform according to your needsFig 2: Best data streaming platform according to your needs
Platform 
Use Case 
Organization Type 
Apache Kafka 
  • Requires in-house maintenance 
  • Custom solutions needed 
  • Existing on-premises infrastructure 
  • Strict regulatory compliance 
  • Large enterprises with skilled DevOps 
  • Unique use cases 
  • Cost-constrained enterprises 
  • Regulated industries 
Azure Event Hubs 
  • Strong reliance on Azure 
  • Quick deployment, easy to use 
  • Variable streaming workloads 
  • Startups and agile teams 
  • Businesses with fluctuating demand 
  • Dev teams focused on innovation 
Confluent Cloud 
  • Fully managed Kafka required 
  • Advanced features for enterprise use 
  • Rapid scaling and multi-cloud strategies 
  • Companies needing robust solutions 
  • Organizations anticipating growth 
  • Firms needing cloud flexibility 

Implementation Considerations 

When embarking on the journey to implement a streaming platform, organizations must address a variety of considerations that span architectural patterns, migration strategies, and performance optimization techniques. Below are key areas to explore: 

Architectural Patterns for Each Option 

When considering the best architectural patterns for real-time data processing, various options exist that cater to different needs and use cases. Below are three prominent solutions and their respective architectural characteristics. 

Apache Kafka (Self-Managed) 

For organizations opting for self-management, Apache Kafka presents an array of architectural patterns that enhance scalability and integration. 

  • Microservices Architecture: This pattern is ideal for microservices, enabling asynchronous communication for scalability and decoupling among services. 

  • Event Sourcing: By capturing state changes, this approach supports event sourcing, providing an auditable event history that can be crucial for tracing and debugging. 

  • Data Integration Hub: Kafka can serve as a central hub to connect disparate data silos, streamlining data flows across various systems for improved interoperability. 

Azure Event Hubs 

Azure Event Hubs provides robust real-time event processing and analytics capabilities for users looking for a cloud-native solution. 

  • Event-Driven Architecture: This supports real-time event responsiveness between applications, allowing systems to react immediately to incoming data. 

  • Serverless Integration: Smooth integration with Azure Functions allows for cost-effective, serverless processing of events and reduced overhead. 

  • Streaming Analytics: Integration with Azure Stream Analytics allows organizations to draw real-time insights from the streaming data as it passes through the system. 

Confluent Cloud 

Confluent Cloud is a fully managed service for Apache Kafka, making it easy to deploy and manage in the cloud, while still providing full Kafka functionality. Key features include: 

  • Managed Service Architecture: With a completely managed solution, organizations can concentrate on development instead of maintenance and scalability issues. 

  • Multi-Cloud Deployment: It supports easy multi-cloud deployment of Kafka with flexibility and reliability. 

  • Hybrid Data Pipelines: Confluent Cloud supports hybrid data connectivity from on-premises to cloud infrastructure without affecting performance and data integrity. 

Migration Strategies

Moving to a new streaming system or platform is a crucial milestone that should be planned and undertaken with great care so that everything goes according to plan. Depending on your company's unique needs and how complex the infrastructure is now, various migration methods can be implemented. Here are some of the most significant migration methods to consider: 

  • Lift and Shift: Move applications with minimal changes, quick implementation, minimal disruption, carryover of existing inefficiencies, and limited leverage of new features. 

  • Incremental Migration: Migrate components one at a time, gradual adaptation, reduces risk, may require parallel systems and longer migration time. 

  • Dual-Run Strategy: Run old and new systems in parallel, reducing data loss risk, making a fallback option available, increasing complexity, and consuming more resources. 

  • Data Replication: This method continuously syncs data from legacy to new, minimizes data loss, and allows near-seamless user transition. It requires additional tools and possible replication lag. 

  • Big Bang Migration: All components migrate simultaneously, reducing migration duration and simplifying post-switch management. However, there is a high risk of downtime, and extensive planning is required. 

Performance Optimization Techniques 

Performance optimization methods improve application efficiency and response speed, particularly in migrations to the cloud or new streaming environments. With data-heavy applications becoming the norm, performance optimization is essential to ensure seamless user experience and efficient resource management. 

Performance Optimization for application

Fig 3: Performance Optimization for application 

Real-Time Inventory Management in Retail 

A large retail chain faced stockouts, leading to frustrated customers and decreased satisfaction and loyalty. 

The Solution

The store incorporated Azure Event Hubs, Azure Synapse, and Power BI to manage the inventory efficiently. Event Hubs allowed data consumption from point-of-sale, online transactions, and stock management. Azure Synapse provides real-time processing, enabling the visualization of stock levels with Power BI dashboards. 

Lessons Learned

  • Integration is Key: Merging various Azure services offered a holistic view of inventory. 

  • Real-Time Monitoring: Real-time visibility allowed for swift decision-making, significantly reducing stockouts. 

  • Data Quality Matters: Ensuring the accuracy and completeness of incoming data is crucial for reliable analytics. 

  • Scalability: If the solution is optimal but not scalable, it’s obsolete. During peak hours, it must cater to millions of uses and thus should be scalable.

  • User Training: As these companies adopt new technologies, the users and employees must be trained to adopt the new services quickly. 

Next Steps: Embracing Data Streaming Technologies for Competitive Advantage 

Talk to our experts about implementing compound AI system, How Industries and different departments use Agentic Workflows and Decision Intelligence to Become Decision Centric. Utilizes AI to automate and optimize IT support and operations, improving efficiency and responsiveness.

More Ways to Explore Us

Real-time Data Streaming with Kafka | The Ultimate Guide

arrow-checkmark

Data Streaming with Apache Kafka and Flink

arrow-checkmark

Overview of Kafka and ZooKeeper Architecture

arrow-checkmark

 

Table of Contents

navdeep-singh-gill

Navdeep Singh Gill

Global CEO and Founder of XenonStack

Navdeep Singh Gill is serving as Chief Executive Officer and Product Architect at XenonStack. He holds expertise in building SaaS Platform for Decentralised Big Data management and Governance, AI Marketplace for Operationalising and Scaling. His incredible experience in AI Technologies and Big Data Engineering thrills him to write about different use cases and its approach to solutions.

Get the latest articles in your inbox

Subscribe Now