A data warehouse is a collection of historical information that allows analysts to analyze information from a variety of sources to get actionable insights. A data warehouse can be deployed on-premises or in the cloud. The choice you make is contingent on your company’s needs and factors such as cost and scalability, control, security and resources.
Data warehouses are made to store large amounts of historical enterprise data and performing in-depth analysis of data for reporting and business intelligence (BI). They can be used to store both non-relational and relational data. They are usually structured, which means that the data is loaded and extracted after which it is transformed to schemas that are pre-defined prior to being stored. This makes it easier to run queries against them instead of directly against an operational source system.
Traditional data warehouses on premises require expensive hardware and software to host them. They have a limited storage capacity compared to computing power and must continually discard old data to make space for the newest data. A data warehouse allows you to run queries that are based on historical data which are not possible on operational systems because they only update their data with real-time information.
A cloud-based data warehouse or managed service, is an automated and highly efficient solution that is a perfect choice for companies that need to analyze massive amounts of data over time. It is usually a better alternative to data warehouses that are on-premises as it eliminates the requirement for massive servers, and also offers a flexible pricing structure with the option of paying per hour of use or with a fixed cost for a certain amount of resources.
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