Data warehousing is an essential concept that you need to understand if you want to make more informed business decisions. It can provide you with useful business intelligence and insights to guide your marketing and business strategies.
Before we look at some of the benefits of data warehousing and cloud technology, we need first to understand what it is.
What is data warehousing?
Data warehousing is a system that collects information from different areas of a company and stores it in a central location. You then analyse the data to help make informed decisions at different levels in the business.
It should not be confused with databases as there are a few subtle differences. Databases are structured sets of stored data sourced from a single application. They are usually related to the day-to-day transactions in a business. An example of a database used in daily life is an airline that uses an online booking system to track purchased flights.
Data warehouses collect large volumes of historical data from many applications. They provide data for in-depth analysis and reporting within your company. An example of data warehouse usage is an e-commerce business wanting to analyse their user behaviour to help refocus
Traditional vs. cloud-based data warehousing
The lines between data warehousing and cloud technology are blurring. In the last five years, technology is shifting. More and more companies are shying away from traditional on-site warehouses, in favour of newer cloud-based warehouses.
There are advantages with adopting a cloud-based model over a traditional model. Here are three of the most significant benefits you stand to gain by upgrading:
1) Cheaper to operate
Because the cloud doesn’t require any up-front licencing costs or hardware requirements, cloud-based systems are usually much less expensive to set up.
The other benefit is that you are only paying for the amount of data you are storing. It then becomes a very cost-efficient solution in the long-run.
2) Quicker to set up
Setting up a cloud-based data warehouse is relatively quick and easy. When buying a cloud solution from a company, you will get access to a team of experts in the field and training from the start.
3) Increased ability to scale-up
As the company continues to operate, you will collect more data and need more storage space. Cloud-based systems allow for the storage of vast amounts of data with no effect on the security, stability or performance of the warehouse.
It also makes it much easier for companies to scale up compared to traditional on-site warehouses.
The future of data warehousing and cloud technology
If your business is also looking to make the shift to cloud-based storage, you will want to transfer your data quickly and easily. Contact us now and one of our team of experts can help you find a tailored cloud solution for your business.