Stream Processing: Definition, Tools, and Challenges

With the rise in reliance on data to make decisions in many businesses, many are looking for ways to have fresh data for quick, actionable insights. One commonly used technique is stream processing.

In this blog post, we'll explain more about what stream processing is, its key components, popular frameworks, and tools, as well as the challenges and advantages it offers over traditional batch processing.

Stream Processing Explained

Stream processing is a data processing method that handles continuous data streams from an array of sources, such as transactions, stock feeds, website analytics, connected devices, and weather reports, to provide real-time analysis.

Through real-time stream processing, several applications can be used, including:

Businesses across numerous industries are taking advantage of stream processing to gain valuable insights from real-time data. Some examples include:

Stream processing enables the transformation of how organizations leverage stream data and output data for decision-making using stream processing tools.

It is commonly utilized in big data technology to query continuous data streams and detect conditions quickly within a short period. Stream processing hardware plays a crucial role in ensuring the efficient processing of these data streams.

Key Components of Stream Processing

Various essential components ensure the effective functioning of stream processing architectures. A good reference for modern architecture can be found in this AWS Whitepaper.

Stream Processing Engine

The stream processing engine is the core component responsible for receiving, aggregating, and processing data streams in real time. It can handle low-latency data ingestion while supporting fault tolerance and data processing at scale.

There are three main types of stream processing engines:

  1. Open Source Compositional Engines (Apache Storm)
  2. Managed Declarative Engines (Apache Spark Streaming)
  3. Fully Managed Self-Service Engines

Storage

Storage in stream processing is used to store the processed data, as well as the metadata associated with it. It can be a local file system, a distributed file system like HDFS or Amazon S3, or a cloud-based service like Google Cloud Storage.

Messaging System/Broker

A messaging system enables communication between various components of the stream processing architecture. It helps in handling the incoming data streams and delivering them to the processing engine.

Dashboard/Visualization Tool

A dashboard or visualization tool is a critical component that displays the processed data in an interactive manner for users to monitor and analyze real-time data.

Some of these tools include:

To visualize and share real-time data from stream processing, you'll require stream processing frameworks and tools.

Among these, Apache Kafka and Apache Flink are the most popular and widely used frameworks.

Both frameworks offer distinct features and capabilities, enabling organizations to choose the one that best suits their needs and use cases.

In the following sections, we'll overview frameworks and discuss some other good alternatives.

Apache Kafka

Apache Kafka, a favored open-source stream processing platform, offers a unified, high-throughput, low-latency platform for managing real-time data feeds.

Here are some of it's key features

Kafka is designed to effectively handle real-time data feeds, managing high-volume, high-velocity, and high-variety data streams. It allows for continuous data ingestion and supports real-time analytics, enabling organizations to make timely and informed decisions.

Apache Flink, another popular open-source, distributed stream processing framework, presents robust capabilities for stateful computations over data streams.

Flink provides support for:

Flink is a distinct data processing framework that facilitates stateful computations over data streams, handling both unbounded and bounded data streams. This makes it an ideal tool for handling big data and streaming applications.

In terms of performance, Apache Flink is deemed to be faster than Apache Spark for stream processing.

Other Common Frameworks and Tools

Besides Apache Kafka and Apache Flink, several other renowned stream processing frameworks and tools exist, including:

Each of these frameworks provides distinct features and capabilities for stream processing. They also belong to different architecture ecosystems as well, like Amazon, Google, and Microsoft.

For better data integration, go with your current tech stack to experience better integrations with your enterprise ecosystem solutions.

Challenges in Stream Processing

Despite its power and velocity, stream processing brings its own set of challenges. Some of the key challenges include:

Tackling these challenges is vital to fully utilize the stream processing technology and the high cost it demands.

Scalability and Fault Tolerance

Scalability is a critical consideration in stream processing, as it enables the system to process an increasing volume of data streams without a decline in performance. Stream processing systems must be able to scale up and down rapidly and effectively to accommodate the application's requirements.

Fault tolerance is another crucial aspect of stream processing, as it ensures the uninterrupted operation and recovery from any failures in the system.

By implementing fault tolerance mechanisms, stream processing systems can recover from any failures and proceed with processing data without interruption, guaranteeing the reliability and availability of the system.

Some of the measures to handle crash failures include:

Cost-Effectiveness

Stream processing can be expensive, as it requires high-performance computing resources to process large volumes of data in real time. Companies need to carefully evaluate the features and capabilities they require and choose a system that offers the best balance between cost and performance.

This also includes being selective in choosing which data points require real-time feeds.

Data Consistency and Ordering

Data consistency and event ordering are integral to stream processing, as they guarantee that the data is processed in the right sequence and that the outcomes are consistent. Stream processing systems must be able to guarantee that the data is processed in the right order and that the results are consistent across all nodes in the system.

Achieving data consistency and ordering can be challenging in distributed systems, but it is crucial for maintaining the integrity of data streams and ensuring that events are processed in the correct order.

Stream Processing vs. Batch Processing

Even though stream processing provides numerous benefits for managing real-time data, batch processing is also important, as each approach is apt for different scenarios and applications.

Here are their differences:

Stream processing is ideal for applications that require continuous data ingestion and real-time analytics, while batch processing is more suitable for regularly scheduled data processing tasks and scenarios where real-time processing is not required.

Advantages of Stream Processing

Stream processing holds multiple advantages over batch processing. One of the most significant benefits is its ability to process data in real-time as it enters the system, eliminating any wait time between collecting and processing the data and allowing for immediate analysis and decision-making.

Other advantages of stream processing include:

These features make stream processing a powerful tool for organizations looking to gain valuable real-time insights from their data.

When to Choose Batch Processing

Batch processing is apt for:

When deciding between batch processing and stream processing, organizations should consider the volume of data, the necessity of real-time processing, and the complexity of the task.

Batch processing is suitable for processing large volumes of data at specific time intervals, allowing for easier management and optimization, while stream processing is ideal for processing real-time data continuously.

Wrapping Up

In conclusion, stream processing is a powerful technology that enables organizations to process and analyze data in real time, offering numerous advantages over traditional batch processing methods.

As the demand for real-time insights continues to grow, stream processing will undoubtedly play an increasingly significant role in the future of data-driven decision-making.

FAQs about stream processing

What is stream processing?
Stream processing is the real-time processing of data as it is produced or received, enabling immediate analysis and action.
How does stream processing differ from batch processing?
Stream processing analyzes data in real time as it arrives, while batch processing collects data over time and processes it in groups.
What are common use cases for stream processing?
Common use cases include fraud detection, real-time analytics, monitoring, and alerting for IT operations, and processing IoT data.
What are the benefits of stream processing?
Benefits include faster insights, the ability to act on data immediately, improved operational efficiency, and enhanced decision-making.
What are some challenges of stream processing?
Challenges include handling high data volumes, ensuring data accuracy, managing latency, and integrating with existing systems.

Related Articles

How to Use LLMs for Log File Analysis: Examples, Workflows, and Best Practices
Learn
7 Minute Read

How to Use LLMs for Log File Analysis: Examples, Workflows, and Best Practices

Learn how to use LLMs for log file analysis, from parsing unstructured logs to detecting anomalies, summarizing incidents, and accelerating root cause analysis.
Beyond Deepfakes: Why Digital Provenance is Critical Now
Learn
5 Minute Read

Beyond Deepfakes: Why Digital Provenance is Critical Now

Combat AI misinformation with digital provenance. Learn how this essential concept tracks digital asset lifecycles, ensuring content authenticity.
The Best IT/Tech Conferences & Events of 2026
Learn
5 Minute Read

The Best IT/Tech Conferences & Events of 2026

Discover the top IT and tech conferences of 2026! Network, learn about the latest trends, and connect with industry leaders at must-attend events worldwide.
The Best Artificial Intelligence Conferences & Events of 2026
Learn
4 Minute Read

The Best Artificial Intelligence Conferences & Events of 2026

Discover the top AI and machine learning conferences of 2026, featuring global events, expert speakers, and networking opportunities to advance your AI knowledge and career.
The Best Blockchain & Crypto Conferences in 2026
Learn
5 Minute Read

The Best Blockchain & Crypto Conferences in 2026

Explore the top blockchain and crypto conferences of 2026 for insights, networking, and the latest trends in Web3, DeFi, NFTs, and digital assets worldwide.
Log Analytics: How To Turn Log Data into Actionable Insights
Learn
11 Minute Read

Log Analytics: How To Turn Log Data into Actionable Insights

Breaking news: Log data can provide a ton of value, if you know how to do it right. Read on to get everything you need to know to maximize value from logs.
The Best Security Conferences & Events 2026
Learn
6 Minute Read

The Best Security Conferences & Events 2026

Discover the top security conferences and events for 2026 to network, learn the latest trends, and stay ahead in cybersecurity — virtual and in-person options included.
Top Ransomware Attack Types in 2026 and How to Defend
Learn
9 Minute Read

Top Ransomware Attack Types in 2026 and How to Defend

Learn about ransomware and its various attack types. Take a look at ransomware examples and statistics and learn how you can stop attacks.
How to Build an AI First Organization: Strategy, Culture, and Governance
Learn
6 Minute Read

How to Build an AI First Organization: Strategy, Culture, and Governance

Adopting an AI First approach transforms organizations by embedding intelligence into strategy, operations, and culture for lasting innovation and agility.