Lessons Learned in Data Engineering 2025: Do’s, Don’ts & Best Practices

Discover key lessons from 15 years in data engineering. Explore do’s, don’ts, and best practices for 2025, from data lineage and contracts to observability and AI readiness.

By

Jatin Solanki

Updated on

September 30, 2025

Fifteen years ago, when I wrote my first ETL pipeline, I thought data engineering was all about moving data from Point A to Point B. Clean it, transform it, and load it into a warehouse—that was the job.

Fast forward to 2025, and the role of a data engineer is far more complex—and far more critical. We are no longer just building pipelines; we are laying the foundations for AI, analytics, and enterprise decision-making. We don’t just “move data”; we build trust in data.

Over these years, I’ve made mistakes, seen failures, and learned painful lessons. I’ve also witnessed what works—the practices that scale, sustain, and set teams up for long-term success.

This article is my attempt to distill those lessons for anyone navigating data engineering in 2025—whether you’re just starting or leading teams.

Why Data Engineering in 2025 Feels Different?

Three major shifts have redefined our profession:

  1. AI Everywhere
    Every business wants to be “AI-ready.” That means data pipelines aren’t just about reporting—they’re about feeding machine learning models, powering LLMs, and enabling agentic workflows.
  2. Data Trust Over Data Volume
    Gone are the days when bragging about “10 TB ingested per day” was enough. Today, the question is: can your CFO trust the numbers? Can your AI agent rely on the lineage?
  3. Hybrid, Multi-Cloud Reality
    Enterprises are no longer locked to one stack. A modern data engineer must navigate Snowflake, BigQuery, Databricks, Trino, Oracle, Kafka, and increasingly, lakehouse formats like Iceberg.

With that in mind, let’s break down the Do’s and Don’ts of modern data engineering—lessons I wish I had internalized sooner.

✅ Do’s: Practices That Actually Work

1. Design for Lineage from Day One

Don’t wait until an auditor, regulator, or frustrated data scientist asks, “Where did this column come from?” Build lineage tracking into your pipelines.

  • Use query parsers or catalog tools that automatically extract lineage.
  • Store transformations as metadata, not tribal knowledge.
  • Treat lineage as part of documentation, not an afterthought.

In my experience, lineage isn’t just compliance—it’s productivity. It reduces “debugging by Slack thread” and accelerates onboarding.

2. Implement Data Contracts Early

A lesson I learned the hard way: if producers and consumers don’t agree on schemas, chaos follows.

  • Define clear ownership of datasets.
  • Lock schemas with contracts that prevent silent breaking changes.
  • Use contract testing in CI/CD pipelines.

Data contracts create accountability, and in 2025, they’re as critical as unit tests in software.

3. Invest in Observability, Not Just Monitoring

Monitoring tells you something broke. Observability helps you understand why.

  • Track freshness, volume, distribution, and schema drift.
  • Alert not just on failures, but on anomalies (e.g., revenue drops without upstream failure).
  • Correlate data issues back to business KPIs.

Think of observability as “CCTV for your pipelines.”

4. Treat Metadata as a First-Class Citizen

Metadata is no longer optional documentation; it is the foundation for AI-ready data.

  • Automate metadata extraction wherever possible.
  • Enrich with business glossary terms, owners, and classifications.
  • Use metadata to power discovery, security, and context for LLMs.

If data is fuel, metadata is the GPS—it tells you where it came from, where it’s going, and why.

5. Adopt Fail-Fast Principles

In data engineering, perfectionism is a trap.

  • Ship minimal viable pipelines first.
  • Test assumptions quickly.
  • Automate rollbacks when failures happen.

Failing fast saves you from sinking months into pipelines no one actually uses.

6. Prioritize Security and Compliance by Design

In 2025, privacy regulations (GDPR, CCPA, PDPA, etc.) are expanding, and AI governance is a boardroom topic.

  • Build access controls at row/column level.
  • Classify sensitive data early.
  • Log and audit every data access.

Don’t bolt on compliance later—it’s always costlier.

7. Optimize for Cost, Not Just Performance

With cloud bills spiraling, cost-awareness is part of the job.

  • Track query costs in Snowflake/BigQuery.
  • Prune unnecessary transformations.
  • Use caching, partitioning, and lifecycle policies.

I’ve seen companies save millions by simply auditing stale datasets nobody used in years.

8. Document Like an Engineer, Not a Historian

Documentation isn’t writing essays—it’s making future engineers (or yourself) productive.

  • Focus on what someone troubleshooting at 2 AM needs.
  • Keep docs close to the code (e.g., in repo or catalogs).
  • Automate documentation where possible.

Good documentation is like good lineage: invisible when it works, painful when it’s absent.

9. Measure Business Value, Not Just Technical Metrics

Data engineering success isn’t “99% pipeline uptime.” It’s whether the business made better decisions.

  • Tie observability metrics to business KPIs.
  • Show how data availability impacts revenue, churn, or customer experience.
  • Translate technical improvements into business outcomes.

This shift has been key for me in conversations with executives and investors.

10. Build for Change, Not Stability

The only certainty is that tools and requirements will change.

  • Use modular architectures.
  • Decouple storage from compute.
  • Avoid vendor lock-in where possible.

Resilience isn’t building an unbreakable system—it’s building one that can evolve.

❌ Don’ts: Mistakes You’ll Regret

1. Don’t Chase Tools for the Hype

Every year, a new “game-changer” emerges. In 2025, it might be a flashy AI-native data orchestrator.

Don’t rip apart your stack just to chase trends. Tools are enablers, not saviors. Focus on fundamentals: modeling, contracts, and governance.

2. Don’t Ignore Data Quality Until It’s Too Late

“Garbage in, garbage out” is cliché, but still true.

Don’t wait until leadership asks, “Why is revenue off by 20%?” Embed data quality checks upfront—null checks, reconciliation, anomaly detection.

The longer you wait, the harder it is to fix.

3. Don’t Treat Data Governance as Bureaucracy

Too many teams see governance as red tape. In reality, governance is context: ownership, definitions, and access.

Avoid the trap of over-engineering policies that nobody follows. Instead, make governance part of daily workflows.

4. Don’t Overcomplicate Your Architecture

Every engineer wants to build elegant, multi-layered architectures. The problem? Complexity multiplies failure points.

If your pipeline requires five systems and three handoffs, you’ve likely overdesigned it.

Keep it simple, especially in the early stages.

5. Don’t Build Without Stakeholder Alignment

I once built a beautiful set of pipelines only to find out the business didn’t need them.

Don’t assume requirements—validate them. Align with product managers, analysts, and business leaders before writing code.

6. Don’t Forget About the Human Element

Pipelines don’t fail in isolation—teams fail.

  • Don’t let knowledge live in silos.
  • Don’t ignore onboarding or mentoring.
  • Don’t treat data engineers as ticket-resolvers; empower them as partners.

Culture matters as much as technology.

7. Don’t Assume AI Will “Fix” Data

In 2025, many executives assume, “We’ll just throw an LLM at it.”

Don’t fall into that trap. AI depends on structured, trusted data. If your lineage is broken, AI will hallucinate confidently—and dangerously.

8. Don’t Delay Automation

Manual fixes scale poorly.

  • Don’t rely on human eyes for anomaly detection.
  • Don’t handle schema changes manually.
  • Don’t copy-paste SQL transformations forever.

Automation isn’t optional—it’s survival.

9. Don’t Neglect Soft Skills

Your best query optimization won’t matter if you can’t explain its impact to leadership.

  • Don’t hide behind jargon.
  • Don’t dismiss non-technical stakeholders.
  • Don’t underestimate storytelling in data.

As engineers, we often think in code, but leadership thinks in outcomes. Bridge that gap.

10. Don’t Lose Sight of the Bigger Picture

It’s easy to obsess over pipelines and miss the fact that the end goal is enabling decision-making and innovation.

Don’t get stuck optimizing the wrong thing. Step back and ask: Why does this data matter?

Looking Ahead: The Future of Data Engineering

If I had to summarize where data engineering is heading:

  • From Pipelines to Products: Treat data assets as products, with ownership, SLAs, and lifecycle management.
  • From Governance to Context: The future is not just controlling data—it’s providing context so that AI and humans alike can trust and use it.
  • From Hype to Trust: Enterprises don’t need another tool—they need a platform that unifies observability, lineage, and governance into data trust.

And this is where platforms like Decube (yes, I’m biased) are playing a huge role. By unifying data observability, contracts, catalog, and governance, they help enterprises not just manage data, but trust it—laying the foundation for AI readiness.

Final Thoughts

After 15 years in the trenches, my biggest lesson is this: data engineering is less about moving data and more about creating trust.

Trust that numbers are accurate. Trust that models aren’t biased. Trust that compliance won’t break. Trust that teams can move fast without chaos.

The tools will change. The buzzwords will change. But if you focus on trust—through lineage, contracts, observability, and context—you’ll always be ahead.

What does “data context” mean?
Data context refers to the semantic, structural, and business information that surrounds raw data. It explains what data means, where it comes from, who owns it, and how it should be used.
What is a centralized LLM framework?
It’s an enterprise-wide system where all departments access AI through a shared platform, equipped with guardrails, context layers, and multimodal capabilities.
What are guardrails in AI?
Guardrails are controls—policies, access restrictions, and compliance checks—that ensure AI outputs are secure, ethical, and aligned with enterprise goals.
How does data context affect ROI in AI?
Models trained or prompted with contextualized data deliver outputs that are relevant, trustworthy, and actionable—leading to faster adoption and higher business value.
What is MCP (Model Context Protocol) and why does it matter?
MCP defines how models interact with external tools and data sources. Feeding it with strong context ensures the AI agent can act accurately and responsibly.
What is a Data Trust Platform in financial services?
A Data Trust Platform is a unified framework that combines data observability, governance, lineage, and cataloging to ensure financial institutions have accurate, secure, and compliant data. In banking, it enables faster regulatory reporting, safer AI adoption, and new revenue opportunities from data products and APIs.
Why do AI initiatives fail in Latin American banks and fintechs?
Most AI initiatives in LATAM fail due to poor data quality, fragmented architectures, and lack of governance. When AI models are fed stale or incomplete data, predictions become inaccurate and untrustworthy. Establishing a Data Trust Strategy ensures models receive fresh, auditable, and high-quality data, significantly reducing failure rates.
What are the biggest data challenges for financial institutions in LATAM?
Key challenges include: Data silos and fragmentation across legacy and cloud systems. Stale and inconsistent data, leading to poor decision-making. Complex compliance requirements from regulators like CNBV, BCB, and SFC. Security and privacy risks in rapidly digitizing markets. AI adoption bottlenecks due to ungoverned data pipelines.
How can banks and fintechs monetize trusted data?
Once data is governed and AI-ready, institutions can: Reduce OPEX with predictive intelligence. Offer hyper-personalized products like ESG loans or SME financing. Launch data-as-a-product (DaaP) initiatives with anonymized, compliant data. Build API-driven ecosystems with partners and B2B customers.
What is data dictionary example?
A data dictionary is a centralized repository that provides detailed information about the data within an organization. It defines each data element—such as tables, columns, fields, metrics, and relationships—along with its meaning, format, source, and usage rules. Think of it as the “glossary” of your data landscape. By documenting metadata in a structured way, a data dictionary helps ensure consistency, reduces misinterpretation, and improves collaboration between business and technical teams. For example, when multiple teams use the term “customer ID”, the dictionary clarifies exactly how it is defined, where it is stored, and how it should be used. Modern platforms like Decube extend the concept of a data dictionary by connecting it directly with lineage, quality checks, and governance—so it’s not just documentation, but an active part of ensuring data trust across the enterprise.
What is an MCP Server?
An MCP Server stands for Model Context Protocol Server—a lightweight service that securely exposes tools, data, or functionality to AI systems (MCP clients) via a standardized protocol. It enables LLMs and agents to access external resources (like files, tools, or APIs) without custom integration for each one. Think of it as the “USB-C port for AI integrations.”
How does MCP architecture work?
The MCP architecture operates under a client-server model: MCP Host: The AI application (e.g., Claude Desktop or VS Code). MCP Client: Connects the host to the MCP Server. MCP Server: Exposes context or tools (e.g., file browsing, database access). These components communicate over JSON‑RPC (via stdio or HTTP), facilitating discovery, execution, and contextual handoffs.
Why does the MCP Server matter in AI workflows?
MCP simplifies access to data and tools, enabling modular, interoperable, and scalable AI systems. It eliminates repetitive, brittle integrations and accelerates tool interoperability.
How is MCP different from Retrieval-Augmented Generation (RAG)?
Unlike RAG—which retrieves documents for LLM consumption—MCP enables live, interactive tool execution and context exchange between agents and external systems. It’s more dynamic, bidirectional, and context-aware.
What is a data dictionary?
A data dictionary is a centralized repository that provides detailed information about the data within an organization. It defines each data element—such as tables, columns, fields, metrics, and relationships—along with its meaning, format, source, and usage rules. Think of it as the “glossary” of your data landscape. By documenting metadata in a structured way, a data dictionary helps ensure consistency, reduces misinterpretation, and improves collaboration between business and technical teams. For example, when multiple teams use the term “customer ID”, the dictionary clarifies exactly how it is defined, where it is stored, and how it should be used. Modern platforms like Decube extend the concept of a data dictionary by connecting it directly with lineage, quality checks, and governance—so it’s not just documentation, but an active part of ensuring data trust across the enterprise.
What is the purpose of a data dictionary?
The primary purpose of a data dictionary is to help data teams understand and use data assets effectively. It provides a centralized repository of information about the data, including its meaning, origins, usage, and format, which helps in planning, controlling, and evaluating the collection, storage, and use of data.
What are some best practices for data dictionary management?
Best practices for data dictionary management include assigning ownership of the document, involving key stakeholders in defining and documenting terms and definitions, encouraging collaboration and communication among team members, and regularly reviewing and updating the data dictionary to reflect any changes in data elements or relationships.
How does a business glossary differ from a data dictionary?
A business glossary covers business terminology and concepts for an entire organization, ensuring consistency in business terms and definitions. It is a prerequisite for data governance and should be established before building a data dictionary. While a data dictionary focuses on technical metadata and data objects, a business glossary provides a common vocabulary for discussing data.
What is the difference between a data catalog and a data dictionary?
While a data catalog focuses on indexing, inventorying, and classifying data assets across multiple sources, a data dictionary provides specific details about data elements within those assets. Data catalogs often integrate data dictionaries to provide rich context and offer features like data lineage, data observability, and collaboration.
What challenges do organizations face in implementing data governance?
Common challenges include resistance from business teams, lack of clear ownership, siloed systems, and tool fragmentation. Many organizations also struggle to balance strict governance with data democratization. The right approach involves embedding governance into workflows and using platforms that unify governance, observability, and catalog capabilities.
How does data governance impact AI and machine learning projects?
AI and ML rely on high-quality, unbiased, and compliant data. Poorly governed data leads to unreliable predictions and regulatory risks. A governance framework ensures that data feeding AI models is trustworthy, well-documented, and traceable. This increases confidence in AI outputs and makes enterprises audit-ready when regulations apply.
What is data governance and why is it important?
Data governance is the framework of policies, ownership, and controls that ensure data is accurate, secure, and compliant. It assigns accountability to data owners, enforces standards, and ensures consistency across the organization. Strong governance not only reduces compliance risks but also builds trust in data for AI and analytics initiatives.
What is the difference between a data catalog and metadata management?
A data catalog is a user-facing tool that provides a searchable inventory of data assets, enriched with business context such as ownership, lineage, and quality. It’s designed to help users easily discover, understand, and trust data across the organization. Metadata management, on the other hand, is the broader discipline of collecting, storing, and maintaining metadata (technical, business, and operational). It involves defining standards, policies, and processes for metadata to ensure consistency and governance. In short, metadata management is the foundation—it structures and governs metadata—while a data catalog is the application layer that makes this metadata accessible and actionable for business and technical users.
What features should you look for in a modern data catalog?
A strong catalog includes metadata harvesting, search and discovery, lineage visualization, business glossary integration, access controls, and collaboration features like data ratings or comments. More advanced catalogs integrate with observability platforms, enabling teams to not only find data but also understand its quality and reliability.
Why do businesses need a data catalog?
Without a catalog, employees often struggle to find the right datasets or waste time duplicating efforts. A data catalog solves this by centralizing metadata, providing business context, and improving collaboration. It enhances productivity, accelerates analytics projects, reduces compliance risks, and enables data democratization across teams.
What is a data catalog and how does it work?
A data catalog is a centralized inventory that organizes metadata about data assets, making them searchable and easy to understand. It typically extracts metadata automatically from various sources like databases, warehouses, and BI tools. Users can then discover datasets, understand their lineage, and see how they’re used across the organization.
What are the key features of a data observability platform?
Modern platforms include anomaly detection, schema and freshness monitoring, end-to-end lineage visualization, and alerting systems. Some also integrate with business glossaries, support SLA monitoring, and automate root cause analysis. Together, these features provide a holistic view of both technical data pipelines and business data quality.
How is data observability different from data monitoring?
Monitoring typically tracks system metrics (like CPU usage or uptime), whereas observability provides deep visibility into how data behaves across systems. Observability answers not only “is something wrong?” but also “why did it go wrong?” and “how does it impact downstream consumers?” This makes it a foundational practice for building AI-ready, trustworthy data systems.
What are the key pillars of Data Observability?
The five common pillars include: Freshness, Volume, Schema, Lineage, and Quality. Together, they provide a 360° view of how data flows and where issues might occur.
What is Data Observability and why is it important?
Data observability is the practice of continuously monitoring, tracking, and understanding the health of your data systems. It goes beyond simple monitoring by giving visibility into data freshness, schema changes, anomalies, and lineage. This helps organizations quickly detect and resolve issues before they impact analytics or AI models. For enterprises, data observability builds trust in data pipelines, ensuring decisions are made with reliable and accurate information.

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