Data warehousing is a type of data management system that stores data from various sources to enable and support business intelligence (BI) insights and analytics.
These warehouses consist of a large amount of data from heterogeneous sources. It is the building block of the BI system, which is a blend of technologies that aids the strategic use of data.
Thus, data warehouses are modes of electronic storage designed for the analysis and transformation of data into important information.
A data warehouse refers to an organization’s “single source of truth” since it derives valuable insights that over time become important to data scientists.
So, let’s get a quick look at the important advantages and disadvantages connected with data warehousing.
The following are some key benefits of data warehousing relevant to your business. Have a look!
A data warehouse allows you to find any information within minutes, so it saves time for the employees while accessing specific data. Data warehouses aren’t involved in multiple channels, ensuring low-cost solutions.
Data warehousing provides a unique quality to data by converting it into a standard format. Hence, data from multiple sources can be transformed into a common arrangement. This standardization of data can make an organization produce well-developed business results, letting the business run with consistency and high accuracy.
Data can be assimilated and accessed from multiple sources through efficient business processes. And this capability allows business intelligence (BI) to improve extensively. Thus, with the help of a data warehouse, team members can have a basic understanding of all the information and work towards a common goal.
In business, the foremost priority is to protect the confidential information of the consumers. So to avoid any security breach, a data warehousing solution should be available to every business analyst. Using a data warehouse, the data sources could be kept integrated and appropriately protected, which shall reduce the threat of data infringement.
Despite innumerable benefits, data warehouses can have some disadvantages too. So, a few demerits of a data warehouse are listed below.
Data warehousing contains many similar types of information collected from multiple sources, which can result in homogenization and inflexibility of the data. This represents the loss of data followed by limited accessibility during aggregation.
The data collected from many internal sources sometimes go undetected for years which leads to hidden issues in data warehousing systems. For example, while entering any new data, some fields might accept null values, which results in half-filled information even if the details are available. These hidden issues are time-consuming to solve.
Data warehousing is responsible for transforming raw data into meaningful business insights. Many business enterprises are accessing data warehousing to store and efficiently organize data.
In addition, Data warehouses allow the corporate sectors to improve their business intelligence to compete globally. So, there's no doubt that the requirement for data warehouses will increase enormously in the upcoming years.
Hence, now is the time for developers to have a clear picture of data warehousing to cultivate new strategies for better performance in the future.
Over and above that, if you want to seamlessly migrate data to the cloud, we can help!
At Polyxer, we help accelerate and simplify data warehouse management of business applications and securely migrate their data to the cloud.