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DP-203 Practice Question: A data engineer for a financial services company

You are a data engineer for a financial services company. You manage an Azure Data Lake Storage Gen2 account that stores real-time stock trade data ingested from Azure Event Hubs via Azure Stream Analytics. The data is partitioned by date and symbol. Each day, a downstream Azure Databricks job runs an ETL process to aggregate trades into 5-minute bars and writes the results to a separate container. The Databricks job runs on a cluster with 10 worker nodes (Standard_DS3_v2) using Auto-Scaling enabled (2-10 workers). Recently, the job has been taking longer than expected, and you observe that the cluster is often at 10 workers but still the job duration increased by 30%. The storage account shows high transaction costs. You suspect the issue is related to how data is read. What should you do to optimize the job's performance and reduce costs?

⚠ Common exam trap

Many candidates assume performance issues require scaling up (more workers or larger instances) or changing storage tiers, when the real problem is inefficient data layout (small files) causing excessive I/O and transaction costs.

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

Modify the Stream Analytics job to output larger files (e.g., set the minimum file size to 100 MB) and use coalesce in Databricks to reduce the number of output partitions.

The performance issue stems from reading many small files (small file problem) in Azure Data Lake Storage Gen2, which increases transaction costs and slows down Spark jobs. By configuring Stream Analytics to output larger files (e.g., minimum 100 MB) and using coalesce in Databricks to reduce output partitions, you minimize the number of files read/written, reducing overhead and transaction costs. This directly addresses the root cause—high transaction costs and cluster saturation at 10 workers—without unnecessary scaling or tier changes.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Convert the data to Avro format to reduce file size.

    Why it's wrong here

    Avro may compress differently but does not address the small file count issue.

  • Increase the maximum number of workers to 20 and use a larger instance type.

    Why it's wrong here

    Scaling out may help but does not address the root cause of small file overhead.

  • Modify the Stream Analytics job to output larger files (e.g., set the minimum file size to 100 MB) and use coalesce in Databricks to reduce the number of output partitions.

    Why this is correct

    Larger input files reduce metadata overhead, and coalescing reduces output files, improving performance and reducing costs.

  • Move the data to Azure Blob Storage Premium tier to reduce latency.

    Why it's wrong here

    Premium tier increases cost and does not solve the small file problem.

Quick reference

AWS S3 Storage Class Comparison

Storage ClassMin DurationRetrievalUse Case
S3 StandardNoneImmediateFrequently accessed data
S3 Standard-IA30 daysImmediateInfrequent access, rapid retrieval
S3 One Zone-IA30 daysImmediateNon-critical infrequent data
S3 Intelligent-TieringNoneImmediate–hoursUnknown or changing access patterns
S3 Glacier Instant90 daysMillisecondsArchive with instant retrieval
S3 Glacier Flexible90 daysMinutes–hoursArchive, flexible retrieval
S3 Glacier Deep Archive180 daysHoursLong-term compliance archive

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Written by Johnson Ajibi, MSc IT Security

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