6 Benefits of Adopting a Cloud Data Warehouse for Your Organization

By |2022-11-24T09:48:28+00:00June 25th, 2021|

The 2020 Global State of Enterprise Analytics report reveals that 59% of organizations are moving forward with the use of advanced and predictive analytics. For this reason, most organizations today are creating  cloud data warehouses to get a holistic view of their data and extract key insights quicker. The benefits of enterprise data warehouses extend to breaking data silos, consolidating the data available in different applications, and identifying gaps that would otherwise go unnoticed. 

cloud data warehousing

What is a cloud data warehouse?

But here’s the catch. In comparison to cloud data warehouses, on-premise data warehouses pose certain challenges that affect the efficiency of the organizations’ analytics and business intelligence operations. Moreover, limited scalability and higher up-gradation costs are a few additional drawbacks of on-premise solutions.

Moreover, when using a legacy data warehouse, you run the risk of issues in multiple areas, from security to compliance. Fortunately for forward-thinking organizations, cloud data warehousing solves many of these problems and makes leveraging insights quick and easy.

This blog post will give you all the information you need about cloud data warehousing and its benefit for your business.

What is a Cloud Data Warehouse?

Think of cloud data warehouses as a centralized repository of data stored in the cloud. These data warehouses leverage the power of the cloud to offer enhanced scalability, flexibility, and elasticity to organizations.

Today, more and more businesses are adopting cloud data warehouses as part of their data analytics and business intelligence strategies, owing to the benefits they offer. Moving data warehouses to the cloud relieve businesses from worrying about insufficient storage and lowers their overhead and maintenance costs.

A cloud DWH is critical for businesses that need to make quick, data-driven decisions. It offers businesses improved computational ability and simplified data management, allowing them to extract valuable insights from updated, accurate, and enriched data as and when they are needed.

What are the Benefits of Cloud Data Warehouses Compared to On-premise Solutions?

Traditional data warehousing architecture is no longer able to deliver according to the growing analytics needs of businesses. The fact that the cloud data warehousing market is expected to reach $3.5 billion by 2025 should serve as enough proof that traditional data warehouses have been unable to provide organizations with the speed, scalability, and agility they are looking for.

Cloud-based data warehouses are generally easier to set up than on-premises data warehouses. Built with the changing requirements of organizations in mind, cloud-based data warehouses also ensure compliance and can be more secure than legacy data warehouses. Unlike traditional data warehouses, a modern cloud DWH also supports large data volumes and can be used to store, integrate, and process data from several different sources both on-premises and on the cloud.

Traditional vs. cloud data warehouse

Most cloud data warehousing solutions also provide pay-as-you-go services which are preferred by businesses that are new to the world of data warehousing, and unsure of what they need. This option is also helpful for businesses that foresee new sources and platforms being added to their data architecture because a modern data warehouse can evolve quickly to meet these needs.

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6 Benefits of Cloud Data Warehousing

While having a modern, cloud-based DWH is essential from a business intelligence viewpoint, there are plenty of other benefits of having a data lake or a data mart in the cloud. So, what are the advantages of moving to the cloud?

1. Accessibility

Modern organizations claim that they are all for accessibility and flexibility. But how much truth would these claims hold if their data warehousing infrastructure limits them to a geographical location?

Today, businesses have offices in multiple countries across different continents. With remote work becoming all the rage, organizations need to adopt a mechanism that allows employees to access data and make critical decisions regardless of where they may be.

Unlike on-premise data warehouses, cloud data warehouses can be accessed from anywhere in the world. What’s more, modern data warehouses come with access control features to ensure that the data required for business intelligence is only visible to relevant personnel. Interestingly, even though multiple employees may be accessing the data warehouse simultaneously, data integrity is maintained in modern data warehouses so that organizations never have to worry about compromising their data quality for accessibility.

2. Scalability and Elasticity

Cloud data warehouses are designed keeping the modern enterprise in mind. The cloud architecture of these modern data warehouses enables organizations to modify their resource allocation according to changing demands.

For instance, tourism companies may need more computational power for enhanced analytics during the high season while only consuming a fraction of this processing power during the low season. With a cloud DWH, companies with fluctuating needs will be able to pay only for the features and capabilities that they need – something impossible with on-premises data warehouses.

3. Improved Performance

Cloud data warehouses typically have multiple servers that share the load. These servers ensure that large amounts of data are processed simultaneously without any delays.

Different departments often need organizational data to be processed in different ways. The marketing department, for instance, might need data to draw insights about which marketing channels work best with certain demographics and use this data to create future marketing strategies.

What are the benefits of cloud data warehousing?

Benefits of a cloud data warehouse

On the other hand, the customer support team might need data from different touchpoints to see where the most complaints and feedback are received to deliver solutions quicker and more efficiently.

A modern, cloud-based DWH allows all departments in an organization to access relevant data and make evidence-based decisions that can help increase productivity across the board.

4. More Data Storage

One of the best reasons to move your DWH to the cloud is the increased storage options. As mentioned earlier, cloud data warehousing solution providers often have a pay-as-you-go model which allows organizations to scale up or down without wasting storage space. This model also applies to other capabilities and features that allow businesses to experiment with their data warehousing projects.

5. Enhanced Integration

According to a recent study titled Optimizing Business Analytics by Transforming Data in the Cloud, companies use data from over 400 different sources for analytics and business intelligence. In addition to being in several different formats, this data is structured and formatted in different ways, making integration difficult. Without a proper integration mechanism, this multi-touchpoint data can get stuck in silos, ultimately rendering it unusable and affecting the quality of your analytics.

Fortunately, most modern cloud data warehouses can help maneuver through this challenge with great ease.

Cloud DWH solutions are designed to integrate data from multiple data sources, including cloud applications, databases, and file formats. Even semi-structured and unstructured data can be easily extracted and consolidated within this architecture. The result is a far more holistic view of the organization’s activities and the market it operates within; these cross-enterprise inputs can be used to produce more effective intelligence and analytics.

6. Improved Disaster Recovery

Disaster recovery with legacy data warehouses is often questionable. Companies using legacy data warehouses need to spend large amounts of money to purchase the hardware required to create backups of their data in case disaster strikes. These companies also need to put in additional effort to make the data in these backup locations secure and decide which personnel should be given access.

Using a modern cloud DWH mitigates most of these problems.

Cloud data warehouses create backups of data regularly to ensure that your organization doesn’t have to take the hit in case of a disaster. What’s more, organizations that have adopted cloud data warehouses for their analytics don’t even have to worry about purchasing equipment or storage areas to store their hardware. All they need to do is adjust their subscription to ensure that the solution provides the level of business continuity and disaster recovery that they require.

Is it Time For Your Organization to Consider Cloud Data Warehouse Migration?

The answer is a resounding yes – especially if your competitors have already made a move.

The benefits of a cloud database shouldn’t be limited to a chosen few organizations. A cloud DWH could very well be the missing element your business needs to reduce time-to-market and take the lead in the market.

Among the many advantages of moving to the cloud is that you will be able to get a holistic view of everything from bottlenecks in your supply chain to the efficiency of your marketing strategies, allowing you to make better decisions for the entire organization.

With a cloud DWH resting at the center of your modernization strategy, you can streamline processes with optimized query performance and productive integrations from data sources.

How Astera DW Builder Can Facilitate Your Move to the Cloud

Adopting a cloud DWH for your organization is a huge decision and certainly one that can come with a few challenges. In addition to training and preparing your employees for the move, you’ll also have to ensure that everyone involved in the migration process understands what is happening.

Astera DW Builder can help with just that.

With a visual, intuitive interface, Astera DW Builder is a cloud data warehousing solution that has been designed to simplify the process of DWH implementation. Built on a metadata-driven approach, Astera DW Builder facilitates organizations in everything from gathering requirements to the deployment of data models, that too without typing any code!

The data warehousing features in Astera DW Builder are built on top of the Astera Centerprise platform used for data integration by small and large companies across the globe. The platform supports over 40 unique data sources and provides a powerful, parallel processing ETL/ELT engine to speed up the integration process and help organizations extract valuable insights faster.

Convinced of cloud data warehousing benefits and see how you can fit one in your organization’s data analytics architecture? Get in touch today to speak to our experts or view a demo of Astera DW Builder to find out how you can build a data warehouse in just a few days!