You can always consider setting up a data warehouse to accumulating huge volumes of data from varied applications and sources. The centralized data repository will help you to convert the data into actionable information by processing large and complex queries efficiently. But you must choose the right deployment route to make the data warehouse an integral part of your business intelligence and analytics operations.
While setting up your first data warehouse (DWH), you have an option to choose from two deployment options – on-premise and cloud. A number of studies suggest that most enterprises nowadays prefer deploying DWH in the cloud. Likewise, a steady increase is being noted in the number of enterprises moving their on-premise DWH to the cloud. There are a number of reasons why you must set up your first DWH in the cloud.
7 Reasons Why You Must Deploy Your First Data Warehouse in the Cloud
- 1) Scalability
You have to invest both time and resources to set up an on-premise DWH. Also, you have to invest in expensive hardware and deploy additional technicians to scale up the DWH in future. But cloud technologies will enable you to scale up the DWH without investing additional resources. You can avail the resources required to scale up and down the DWH without any hassle or delay. The pay-per-use pricing model will further enable you to scale up or down the DWH without incurring additional cost.
- 2) Connectivity
The DWH will make it easier for you to integrate a variety of data collected from myriad sources. But you still have to focus on making the data accessible, storing the data in relevant files, and keeping the data digestible. When you deploy the DWH in the cloud, it becomes easier to integrate it seamlessly with various cloud-based tools and services. The cloud-based tools will help you to integrate and store the data through connectors and manipulate the data seamlessly for analytics.
- 3) Speed
The leading cloud service providers deploy servers across geographic locations. When you deploy the DWH in the cloud, it becomes easier to avail the required services from the nearest server based on the geographic location of users. The distributed network of servers further reduces the time required for transferring data from the server to the user, while reducing latency and redundancy. The cloud service providers further allow you to avail additional bandwidth and help you to prevent latency.
- 4) Reliability
The leading cloud service providers like Amazon, Microsoft, and Google promises over 99% uptime. They even keep expanding their server infrastructure and replicating data across multiple servers to eliminate chances of downtime. Hence, you can easily keep the DWH available and accessible by deploying it in the cloud. You can even use uptime as the key criterion for assessing the reliability of cloud services.
- 5) Security
The cloud service providers use the latest security tools and encryption mechanism to keep data secure and inaccessible. They even test their deployment environment consistently to protect the data from emerging security threats. That is why; many enterprises nowadays consider cloud-based deployment to be more secure than on-premise deployment. You can further enhance the security of cloud-based DWH by availing robust security options like data level security, data encryption, IP restrictions, threat detection, and ongoing auditing.
- 6) Simplicity
When you opt for an on-premise DWH, it becomes essential to deploy skilled data scientists to perform routine data warehousing tasks – planning, tuning, and integration. The additional resources will require you to incur recurring operational expenses. But the cloud-based DWH will enable you to automate these common data warehousing tasks. Once you set up the DWH, the cloud-based services and tools will keep ingesting structures, semi-structured, and unstructured data from myriad sources consistently.
- 7) Cost
Many enterprises are moving their on-premise DWH to the cloud to reduce setup and maintenance cost upfront. The on-premise DWH will require you to invest in specialized hardware, robust server rooms, and skilled technicians. On the other hand, you can set up the DWH in the cloud without investing in expensive hardware or setting up robust server rooms. You can further curtail data warehousing set up and maintenance cost by taking advantage of cloud models like Software as a Service (SaaS) and Platform as a Service (PaaS).
On the whole, you can reap benefits in terms of cost, scalability, speed, connectivity, reliability, and security by setting up the DWH in the cloud. But it is always important to keep in mind the advantages and pitfalls of deploying the DWH in the cloud. Hence, you must avail the assistance of skilled technicians to set up the DWH in the cloud efficiently, while removing the pitfalls.