Data warehouse: Everything you need to know

Marketers and business analysts genuinely know the importance of data in their workspace. Depending on how you store and organize your data, you will make work easier or harder for yourself. Software development companies hardly now make business decisions based on spreadsheets. The corporate industry has been innovated by cloud-based technologies, making it possible to return valuable data about their clients whenever they want.

To understand why data warehousing keeps companies competitive, development companies must align with the constantly changing global marketplace.

Data warehousing is one of the many ways to store data. It is a good option for a software development company that comes in contact with many data obtained from different sources.

In this article by Hanna Shnaider, we will learn the full details of data warehousing and how it can help analyze data. You can have a look at her profile here.

What is a data warehouse?

A data warehouse(DWH) is a data management system that collects and stores enormous amounts of data from various sources. Businesses use data warehouses for reporting and data analytics. The objective is to make better business judgments.

To improve decision-making, use a data warehouse to run queries and look at past data across time. Data scientists and business analysts are the primary users of data warehouses in an organization.

Data will be gathered from various sources, including relational databases and transactional systems, in a data warehouse. Analysts will use business intelligence tools to evaluate, data mine, create visualizations, and report on the data. Data is becoming increasingly important for organizations to stay competitive as it evolves.

Critical components of a data warehouse

A typical data warehouse comprises four main components; a central database, ETL(extract, transform, and load), metadata, and access. All these components are created in a way to accept speed as a way of its mechanism.

  1. Central database: A database is the starting point of a data warehouse in a company. It is the first step to take. Formerly, traditional relational databases have always done the work, running in the clouds. But, to reduce the amount of data used each time, in-memory databases are now in use.
  2. Data integration: Using a variety of data integration approaches such as ETL (extract, transform, load) and ELT, as well as real-time data replication, bulk-load processing, data transformation, and data quality and enrichment services; data is pulled from source systems and modified to align the information for rapid analytical consumption.
  3. Metadata: This provides data about your data. It indicates the source and other features of the data sets in your data warehouse. There are two main types of metadata; business metadata, which helps connect your data, and technical metadata, which explains the location and structure of data, showing you how to access it.
  4. Data warehouse access tools: Access tools give users access to the data in the data warehouse. There are numerous access tools available in a data warehouse. An example of access tools is application development tools.

Where are data warehouses stored?

As data volume keeps increasing, the need for a data warehouse becomes more evident. Also, the hardware that collects and provides a means of data flow should be employed. Data warehouses can either be maintained on-premises, in the clouds or both in a company.

What can a data warehouse store?

During the early days of data warehouses in the 1980s, it was primarily built to store information, transactions, and products. This kind of data, called structured data, was used to store neatly organized and accessible data. But, with time, businesses needed to store and analyze unstructured data such as documents and videos.

A modern data warehouse can store both structured and unstructured data. By breaking any boundaries that involve the storage of both types of data, businesses have a chance of breaking boundaries too in their line of work.

Benefits of data warehouse

  1. Data from multiple sources: Since you’ll be getting data from different sources, it will be easier and more efficient to analyze the information or custom software obtained. Compared to a data mart where you can only get data from a single source, data warehouses can collect data from multiple sources. Data Mart is a subset of data warehouses that serve a specific geographical location and business unit.
  2. Historical data: This is one of the main benefits of the data warehouse as it can store a large amount of historical data over time. A company can benefit from a data warehouse, especially when it wants to keep a large amount of data from multiple sources. Historical data can help a company develop effectively by analyzing trends over time which makes them strategize efficiently.
  3. Stability: Data warehouses are stable sources to view data both at a higher and granular level. It gives a custom software agency a chance to view data easily and carry out queries. Since a data warehouse contains data from multiple sources, it is consistent and reliable.


Modern data warehouses will serve as the beginning of a digital transformation for custom software development companies or business units. Data warehouses also provide fast data analytics that never gets in the way of other business systems. Data analytics will make it easy to manage complex data that are processed every day.

Cloud-based data warehouses have become more popular, and for a good cause. There are many advantages to modern data warehouses compared to traditional on-premise data warehouses. Cloud-based data warehouses have so many benefits, which development companies will easily enjoy. These benefits include its low cost of ownership, elasticity, ease of deployment, new technologies, and real-time technologies.

While data warehousing targets mostly business units, some software development companies have other things in mind, such as developing their IT program. Forty-seven software professionals can guide businesses on the most suitable data warehouse software to operate with.

Since data solutions might seem too complex to handle, they’re necessary for your daily business interactions. A data warehouse can help simplify your data storage and analytics.

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