Data warehouses have completely transformed the business information management landscape over the years. With rapid growth and refinements made in this space over the years, companies have been able to derive actionable insights from their data which has led to better and improved business decision making. However, with the rise of Big data and BI, most of the enterprises find it challenging to use the same traditional data warehousing solutions, which are less relevant to today’s changing business needs and massive amounts of data being generated.

Besides, their high costs, complexities, and inability to keep pace with the user needs have led forward-thinking enterprises to embrace cloud data warehousing solutions which are more agile, faster, scalable and provide better economies of scale.

Let’s take a close look at how the modern cloud data warehousing solutions can provide some unique advantages to enterprises and why they may be the best option for them.

Why organizations are moving towards cloud data warehousing?

• In traditional non-cloud based environments, data sharing for enterprises can be difficult – data sharing is required for data monetization, specifically for businesses that need to deal with high volume of customer related data. At the same time, the indirect costs associated with maintenance of legacy on premises data warehouse can prove to be quite expensive when it comes to their maintenance, training, and using third party services. On the other hand, organizations who have switched over to the cloud-based data warehousing systems are able to reap significant cost advantages and operational benefits.
• Cloud data warehouses are being increasingly used as convergence platforms by companies to manage many kinds of operational applications as they enable effective data storage, data acquisition, and aggregation of data using multiple sources in different formats.
• With the growing volume of data in the organization, there may be need to add additional resources very quickly. This is possible due to the scalability offered by the cloud-based data warehouse. Resources may be added incrementally with the increase in data and workloads which provides flexibility for businesses to scale up and down as per their requirements.
• Cloud data warehousing provides a competitive edge to businesses over other enterprises which still rely on legacy on-premises data warehouses for managing their data. It could result in saving considerable time and resources for companies which they can use for focusing on other key strategic initiatives such as moving into new markets, improved customer management or streamlining logistical processes.

Top advantages of using cloud data warehousing solutions

Cloud-based data warehousing is gaining momentum over the years as companies are migrating to the cloud slowly having realized its vast potential and tremendous benefits that it can bring to the organizations.

Here we’ve shared some of the additional advantages of deploying cloud data warehousing systems below:

Economical and involves fewer complexities

The cloud data warehousing solution is more feasible when it comes to pricing when compared to legacy on-premises data warehousing systems. There is no cost of licensing, hardware, electricity, infrastructure or depreciation as it comes with a fixed capacity. Companies basically pay for what they use, and it is a more flexible model as they can be used as per different configurations and meeting performance requirements. In this way, they help in reducing the barriers to entry in terms of cost, complexity and length of time.

Offers higher speed and greater performance

The combination of low-cost storage and high processing capabilities makes the cloud data warehousing an excellent option for the new and different types of data which are being used in advanced analytics workloads. Enterprises can use these systems to integrate and analyze transactional data from key operational systems with data generated from multiple sources- right from RESTful cloud API’s, streaming data from sensors and the social web.

In on-premises data warehousing, it can prove to be very expensive to deploy and upgrade massive parallel processing (MPP) systems. On the other hand, in cloud data warehousing, it’s possible to scale up easily with the addition of compute and storage nodes to boost its performance. Besides, they are taken care by vendors which makes MPP a more lucrative option for a large community of users.

Easy to deploy and provides greater flexibility

Cloud-based data warehousing is more elastic as resources can be reassigned dynamically with the change in workloads. This enables enterprises to either grow their environment or shrink it depending on their requirements. The ability to adapt to the changing business and data landscape with quick and easy deployment options makes cloud-based data warehousing a more profitable option and prepares the enterprise to meet the growing challenges of the future effectively. It also allows companies to extract more value from their data rather than worry about maintaining their physical infrastructure requirements.

Provides better security

Security is the primary concern for every business as the information stored in the data warehouse is likely to be highly sensitive and confidential by nature. With a majority of vendors providing stringent measures with advanced data encryption methods, there is better security ensured using cloud-based systems. Companies such as Amazon Reddit offers the most secure cloud-based data warehousing solutions right from small companies, startups to large sized companies which has helped their customers improve their performance and reduce their costs.

Conclusion

Cloud data warehousing may be the perfect solution for businesses that need to meet the ever-increasing demands of data storage in a cost-efficient manner, without draining their valuable resources while gaining quick and easy data access from across geographical locations.