Data warehouse

A data warehouse (DWH) is a central database that collects, transforms and aggregates structured data from various sources (e.g. ERP, CRM, databases, external systems). It can be understood as a type of consistent cache that forms the basis for business intelligence (BI), analytics, and reporting. In contrast to operational systems and databases, DWHs are particularly optimized for fast and efficient querying and analyzing data.

Benefits of a data warehouse

The central database offers significant advantages. We have listed the most important ones here:

Data Warehouse vs Data Lake

Do you take a fleeting look at Data Lake and Warehouse, the two technologies are similar. However, both pursue different approaches to data storage and offer different foundations for the following steps within data work. Which type of data storage fits a company best depends on various factors, such as data structure and user requirements.

Find out everything you need to know about the differences between data warehouse and data lake in our article: Data warehouse vs. data lake.

Data Warehouse Architecture

In a well-designed data architecture The DWH serves as a central hub. It acts as a kind of bridge between raw data sources and further processing systems, such as reporting and analysis tools. This enables seamless integration and analysis of data.

Business intelligence or dashboarding tools are usually connected directly to the data warehouse. They use data quality and powerful query options for a wide range of analyses, from simple dashboards to complex predictive analytics.

Data warehouse cloud or on-premise?

Traditional warehouse systems, such as Microsoft SQL, SAP Business Warehouse (BW) or Oracle, are mostly used where local data storage and processing is required. They are operated on-premise or in the company's own data centers and offer a high level of control and controllability.

Alternatively, DWH systems can be operated in the cloud. This is useful when your own infrastructure and operation are not available or possible. However, the biggest advantage lies in the scalability of cloud DWH systems as requirements grow and change.

Hybrid models of on-prem and cloud operation of a DWH landscape are often chosen in order — depending on requirements — to be able to implement the best and most cost-effective solution.

Do I need a data warehouse?

A DWH is not just a storage location for data, but a powerful tool for data analysis and an indispensable component of any modern data architecture. The numerous benefits, from improved data quality to faster decision-making, make it a key technology for successful business intelligence.

By implementing a data warehouse, companies can optimize their data strategy, use resources more efficiently and thus increase their competitiveness.

‍