I've read that SSIS tries to do all transformations in memory as a way of enhancing processing speed. What happens though if the amount of data processed exceeds the available RAM Are raw files then used (similar to staging tables) or is an error generated
Barkingdog

SSIS transformations "when data exceeds available memory"
Esen Tuna - MSFT
Actually neither, although at some point an error may be generated but the dataflow task will swap buffers to disk in an internal format when they are not needed and swap them back in when needed. If a buffer is needed but there is not enough memory to swap it back in then an error will occur. Also, if the disk runs out of space, or temp filenames, etc then an error will occur. So out of memory can result in an error but it doesn't happen as soon as there is an out of memory condition. The buffer manager tries to keep processing if it can.
HTH,
Matt