Data Warehouses: Empowering Business Intelligence

Throughout history, people have been storing valuable assets in warehouses and silos. What has shifted through time is the types of assets people consider valuable. In today’s world, information is considered one of the most valuable assets. Hence, it requires a safe and secure warehouse.

A Data Warehousing process is the collection and management of data from diverse sources in order to interpret it into valuable business insights. A Data Warehouse is a digital storage space that is used to integrate and analyze corporate data from several sources. It is comprised of integrated technological tools that facilitate the strategic and timely utilization of data.


The Need for Data Warehousing

Ever since the Data Warehouse was created by IBM employees Paul Murphy and Barry Devlin in the late 1980s, it has been employed by companies to gather and store data from numerous sources by employing customized and sophisticated techniques. These days, with the increasing volume of data generation, companies are seeking the most optimal alternatives for storing large volumes of electronic data. At the same time, they are also demanding that data warehousing services be more secure and economical.

Decision-makers who rely on large amounts of data can make strategic decisions, by taking advantage of the quick performance of Data Warehouses over large volumes of data, which is essential for making reports. Furthermore, Data Warehouses assist in figuring out ‘hidden trends’ in data flows and any other statistical data.

Data Warehouses are comprised of vast quantities of data that usually include complicated data sets. This massive volume of data, cannot be handled by conventional data processing tools. The data is subjected to various operations like analysis, modification, and alterations before being used by businesses for intelligent decision-making. It may also be used to solve corporate challenges by making smart decisions.


Classic Data Warehouses

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Several companies nowadays have multiple Data Warehouses, which are typically built on various architectures. These warehouses are expensive and may need additional human resources to achieve the desired goals. Such traditional Data Warehouses are often built by making use of an actual set of computer gears and IT workers. However, these Data Warehouses have the capability to retain data on-site. On contrary, the classic Data Warehouse structure has drawbacks. The server rooms for storing data consume space. And as businesses expand, investing in new servers and maintaining existing equipment up-to-date can get seriously pricey.

Over the course of years, the volume, diversity, and velocity of the large volume of data have emphasized the significant limitations of conventional Data Warehousing. Their restrictive relational models, high scalability costs, and occasionally poor performance pave the way for new approaches and technologies. The concept of Big Data Warehousing has lately acquired prominence, with the purpose of studying and proposing innovative solutions to cope with big data issues in Data Warehouses.


Cloud Data Warehouses 

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Smile-Sky Ztudio/Shutterstock

In recent years, Data Warehouses have begun to migrate to the cloud. Tech giants like Google and Amazon are providing data storage solutions to customers entirely over the internet. These Data Warehouses provide several advantages, including the ability to keep data up-to-date all at once. Having a real-time cloud-based Data Warehouse allows users to get started managing a company’s data instantly. Furthermore, cloud data warehouses can scale up, allowing users to swiftly extend data storage and management at the same time.

Snowflake is one of the most popular and user-friendly data warehouses. It’s one of the most current and versatile data warehouses. It supports practically unlimited data storage, data streams, and concurrent users. Additionally, Google BigQuery is Google’s Data Warehouse service. It’s a cloud-based storage and allows up to 10GB of free storage. It’s most appreciated for its simplicity and analytic capabilities such as forecasts, insights, and intelligence features, making it scalable and viable for long-term solutions.


Future Trends

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In 2021, the International Journal of Innovations in Engineering Research and Technology [IJIERT] published research on the trends in data warehousing techniques. According to the study, the volumes of data were rising, and it’s going to be a critical time ahead for the data management and development sector. Because financial data is continually generated, it is going to create a tremendous volume of financial data which can be produced in a short period of time. 

One of the biggest trends in the coming years is expected to be making all data available in one service.  Tech companies are already promising to provide Data Warehousing services by combining all data into a single repository with large-scale serverless warehouses. According to the Yellow Brick reports, the data warehousing market size is estimated to grow at over 12 percent Compound and Annual Growth Rate (CAGR) between 2019 and 2025. Also, cloud warehousing solutions are expected to grow at nearly 15 percent CAGR. 

Even though there are astonishing advancements in creating scalable high-performance systems to support mixed and complex analytical workloads, the technology is still in its infancy.


Photo: Gorodenkoff/Shutterstock


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