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Cloud Data Warehouse

What is a Cloud Data Warehouse?

A cloud data warehouse is a database solution that serves as a central repository of information for analytics, scale, and ease of use and is delivered as a managed service in a public cloud.

Cloud-based data warehouses provide agility and flexibility to modern data analytics and business intelligence (BI). It enables businesses to acquire relevant insights, improve customer service, streamline operations, and gain a competitive advantage in the market.

Traditional Data Warehouse vs. Cloud Data Warehouse

Traditional or on-premise data warehouses were designed keeping in mind the data management practices of the 1990s. Therefore, they can’t handle unstructured, complex, and high-volume data gathered by modern data-driven enterprises. An increase in the number of end-users, processing workloads, and data analysis use cases further complicate the processes.

On the other hand, the cloud data warehouse is the solution available on the cloud that helps businesses overcome the challenges of scalability, elasticity, data silos, data latency, adaptability, and data science compatibility. With cloud-based data warehouses, businesses can enhance security and data governance with an integrated data management solution.

Key Features of Cloud Data Warehouse

Some of the key features of a data warehouse on the cloud are as follows:

Massive Parallel Processing (MPP)

Massive parallel processing is a coordinated processing paradigm designed to handle the collaborative processing of program operations by multiple processors. Cloud-based data warehouses use MPP architectures to deliver high performance on large data volumes. They consist of numerous parallel servers to disperse processing and input/output (I/O) loads.

Columnar Data Storage

Cloud data warehouses are typically columnar stores designed for efficiency and speed at scale during analytics workflows. They store and process data in columns instead of rows, making aggregate queries run faster.

Benefits of Using Cloud Data Warehouse

As the volumes of data are increasing exponentially, organizations are turning to modern cloud architectures that bring together scalability and elasticity at a fraction of the cost. Here are some advantages of implementing a cloud-based data warehouse in your business architecture:

Faster Insights with Improved Performance: A cloud data warehouse provides columnar storage, robust computing capabilities, and parallel processing that delivers real-time cloud analytics – faster than an on-premises data warehouse.

Improved Flexibility and Scalability: With nearly unlimited storage, businesses can quickly increase or decrease the volume without any downtime for maintenance tasks.

Cost-Effective: A cloud data warehouse requires no physical hardware, and many offer a pay-as-you-go pricing model so that businesses only have to pay as per their usage, making it a cost-effective choice.

Improved Collaboration: Most cloud data warehouses offer a web-based interface that makes it easier for team members to access, query, visualize data and collaborate on data projects. This way, business users get faster insights to make more profitable decisions.

Enhanced Security: As an effective option for businesses to store and process large amounts of sensitive data, cloud data warehouses provide role-based access controls and encrypted storage, so there’s no chance of infringement.

Apart from these advantages, moving to the cloud data warehouse can help businesses get a holistic view of everything, from supply chain bottlenecks to their marketing strategies’ efficiency, allowing them to make better decisions.

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