Data Warehouse Architecture: On-Premise & Cloud - Which Is the Better Option?

Are you planning to adopt a data warehouse solution but not sure which one to choose?

A data warehouse is a large collection of data and information. It can centralize the data and allow the companies to make use of a database for designed queries and to analyze the data for business needs.

There are three types of data warehouse solutions. An integrated agile data warehouse for the enterprise transforms the data uniformly regardless of resources; a time-variant data warehouse organizes the data as per periods; and a non-volatile data warehouse updates the data periodically by protecting the data.

The Data Warehouse Solution in AWS and the Data Warehouse Solution in Azure make use of information from various data sources in effective business management.

Let us start with What is a data warehouse, and how does it work?

A data warehouse is the well-secured electronic storage of information that is part of organizational data. The collection of information can become part of historical data, which can be analyzed and used according to organizational needs and business requirements.

A data warehouse can be considered the most important aspect of business intelligence. It is mainly to keep track of previous activities that can relate to past successes and failures related to the business. The main aim of the data warehouse is to store historical data that can be utilized to gain better insight into business operations.

Modern businesses, with the help of emerging technology have built better infrastructure for business using business intelligence. It can help in managing the business at different stages and making effective decisions.

It helps in identifying the sources of information and allows critical data to be used in decision-making. A data warehouse is a collection of historical data that can be useful for offering real-time information.

The benefits of data warehousing are several. Let us define a few and discuss them in brief.

1. Provides a historical data collection:

The availability of data is central to business operations. The data stored in the form of historical collections definitely help in planning, organizing, and managing the business at all levels.

The previous data and information needed to be referred to while managing sales and marketing operations.

2. Increases data accuracy and consistency:

The data is collected from different forms and a variety of resources. The data collected can be in the form of structured data, unstructured data, or semi-structured data formats. The data warehouse not only collects and stores the data from different resources, but it also converts the data into higher quality by removing unwanted and duplicate data.

It enhances the quality by making the data accurate and highly consistent.

3. Increases efficiency of the data:

The data warehouse maintains consistency in the data through the scientific processing of the data by the data scientists. The data can be utilized directly by the data scientists to generate the report after performing the tasks. It certainly helps boost the efficiency of business processes and allows for better and more effective results.

The data is made available without further delay and keeps the business going strong.

4. Offers powerful data analytics:

Business intelligence techniques can allow data analytics to be performed on the data to enhance its quality. The processes, such as data mining and analysis, will make the data run at high speed and remain in standard formats. Every business sector can grow efficiently with the help of CRM and HR services.

The business users and the data scientists find it easy to control the business operation from one stage to another.

5. Higher revenue

Data that is well-managed and thoroughly analyzed serves as useful oil for the business engine. The data with the higher value will push the business in an upward direction, and the data warehouse allows the collected data to be used rapidly by the business. The high-quality data and the timely management of decision-making help business managers execute every process easily and effortlessly.

The business operations were optimized enough to handle the extended customer network. Once businesses start growing, they will offer higher returns on investments. This improves business revenue.

6. Enhancing scalability

The data warehouse manages the critical data, and the entire infrastructure of the business remains scalable. Cloud computing techniques help enhance the scalability of the business over time.

It also manages the data more efficiently with higher usage of consistent data. The growth of the business will mainly depend on the scalability of the data.

7. Data security

The main benefit of a data warehouse could be security. It offers complete security to the data while storing, analyzing, managing, and using it in various business operations. The data remains stored under complete protection, and it can be accessed by authorized users only. Various data security techniques are used to protect the data from malicious attacks and cyberattacks.

Custom setup groups can make use of specific data and exclude it from the data pool. The data can be accessed with row-wise permissions.

These are the benefits of using a data warehouse to manage the business or to control various business processes. These benefits will make data warehouses highly popular among different business operations.

Let’s shed some light on data warehouse architecture: on-premise vs. cloud.

A data warehouse was required by organizations in order to use actionable business intelligence. But organizations should have a data warehouse on their premises or in the cloud.

Let us find out which option is the best and most convenient.

On-Premise:

The one option is costly, as the organization needs to spend on high-end hardware and the latest licensed software. It also needs technically expert people to assist with the installation, execution, and other aspects of security. Tech consultants at Emerging Technologies have complete control over the data repository, which can be used to meet the requirements of the business.

Cloud Data Warehouse:

The Data Warehouse Solution relies on cloud computing technology. It can be optimized and easily scaled using hardware and software components. It offers limited resources and can manage various processes daily. It does not cost you more, but it also limits certain office services, which need to be extended.

Let’s get started with the differences between cloud and premise:

Cloud-based solutions are easily available and can be highly preferred by business organizations. The cloud offers a pool of resources and utilities that can be useful in managing the business while remaining flexible in everyday usage.

1. Easy deployment.

Cloud: A cloud-based data warehouse can be easily deployed without requiring hardware or software support or any expertise in managing the processes. The cloud can remain available either using a public or private server. It can also allow third-party providers to offer the various resources required.

On-premise: It allows the hardware and software to be installed according to the exact requirements of the organization’s needs. The installation of the equipment and its use in the business may be costly at first.

2. Scalability.

Cloud: The scalability of cloud data warehouses is one of the biggest benefits for organizations. It allows the organization to grow and work according to the increasing requirements. It allows you to experiment stage by stage and either scale up or scale down the resources depending on the business needs. You can remove the unwanted components if not required, and you can increase the capacity of the components if required.

On-Premise: The experts and experienced managers work as part of Emerging Technologies’ Tech Consultant team to expand the system as per business demand. The resources can be added as per the requirements. This is the reason the option of using the system online can become more expensive while using the resources as per the expansion.

3. Cost Limit.

Cloud: Cloud data warehouses can be managed with limited expenses. The expenses can grow if you require additional resources along with the components. The entire cost of a data warehouse can be easily managed and kept under control in terms of cost.

On-Premise: On-Premise solution can be costlier because it allows you to buy hardware and software from the local market and also has local support from the exporters to install, manage, and run the entire system according to the business requirements. Sometimes the resources will not be fully utilized even after paying for them, and additional resources will need to be bought even for limited usage.

4. Higher Speed

Cloud: The cloud architecture helps the data warehouse perform the process faster because it has all the resources available in one place. Cloud computing can also provide the most suitable solutions for organizations with branches in multiple locations.

On-premise:
It offers the best solution for the business when the entire resource pool is managed in one place. But if you have multiple branches and need to share these resources with other business locations, then it does not remain as effective as the solutions provided by the cloud.

There are other aspects, such as security, connectivity, and reliability, of both systems.

But certainly, the Data Warehouse Solution in AWS and the Data Warehouse Solution in Azure help manage the business system and offer the best business techniques most suitable for your business.

Choose the Best Data Warehouse Solution for Your Company

Data warehouses have changed the way businesses are managed and executed today, thanks to emerging technology. The resources required for the installation of the system can be easily obtained, but it is more important to understand which particular data warehouse is useful for your business and your organization’s requirements.

Both cloud and on-premise can play an important role in business management today.