As the data storage required by companies increases every year, database management has been replaced by a new concept: data warehousing. This concept, called “data warehouse” in English, enables many businesses today to manage the assets they store in the digital environment. As Global IT, Google’s first cloud partner in Turkey, in this article, we focus on the definition of data warehouse, the benefits of data warehouses, and 2022 data warehouse trends.
As businesses move their business processes to digital environments, the meaning we attach to the concept of data has begun to change. The mass of data that emerges with the recording of all business activities has been defined as Big Data and has become one of the vital elements for businesses. As the amount of data stored and processed grew, databases in the traditional sense became inadequate to handle these petabytes of data. As such, new approaches to data management have been developed. Today, businesses don’t just have physical warehouses to manage. On the contrary, they need data warehouses where they can store data sets that record every trace they leave on the internet and digital systems on cloud platforms, stored with software and which, when processed correctly, guide strategic decisions. Moreover, this world is developing and changing every year.
As Global IT, Google’s first cloud solution partner in Turkey, which also offers solutions for data warehouse management and modernization, in this article, we will start from the basics and first touch on the definition of the concept of data warehouse. Next, we’ll outline the benefits of using a data warehouse and focus on 2022 data warehousing trends.
What is a data warehouse?
A data warehouse is an enterprise system for analyzing and reporting structured and semi-structured data from multiple business processes and sources, such as point-of-sale operations, marketing automation, customer relationship management (CRM). Data warehouses make it possible to store both current and historical data in one place. This makes it possible to get a long-term view of the data over time. In this respect, data warehouse management is one of the most important components of business intelligence, which defines the basic discipline of making strategic business decisions.
Cloud data warehousing solutions are managed by cloud services providers like Google. In this way, businesses can benefit from the inherent flexibility of the cloud environment at predictable costs. They don’t need to purchase additional hardware to store the business’s ever-increasing data, which always needs scalability, reducing upfront investment costs.
How do data warehouses work?
All data from operational systems such as marketing, sales, customer relations, supply chain management, e-commerce warehouse management are stored in data warehouses in categories such as metadata, summary data, and raw data. Then, it is brought together in data markets, data warehouse subsets, in other words “data marts” to be ready for the use of the relevant departments and used for areas such as analytics, reporting, data mining.
What are the benefits of data warehouses?
To take advantage of the cost savings and scalability that managed services can provide, companies are rapidly moving their business and data management processes away from traditional data warehouses to the cloud. In this respect, data warehouses provide the following benefits for businesses:
• A managed service: As mentioned, cloud data warehousing solutions are delivered through partners like Google who provide cloud services. In this way, companies can focus their equity on their own business processes and gain operational benefits.
• Designed to scale: Cloud data warehouses are flexible and designed to scale based on the size of the data stored. They can easily adapt to the changing needs of businesses.
• Makes it easy to gain real-time insights: Cloud-based data warehouses support data flows, enabling the ability to evaluate data in real time to make fast, informed business decisions.
• Offers better uptime compared to on-premises solutions: Cloud providers come with the potential for uninterrupted and faster data storage and processing with scalable infrastructures and powerful system features. On-premises data warehouses have limitations that can affect performance.
• Offers advantageous cost: Managed service providers like Google cost their solutions, such as data warehousing, on a per-use basis. In addition, businesses use cloud data warehouses only as much as they need to, and pay as much as they use.
• Supports machine learning and AI: Businesses can harness the power of machine learning technology using data warehouses from Google, which can use AI to turn data into meaningful business outcomes.
2022 data warehouse and data warehouse technology statistics
Let’s take a look at the 2022 statistics on the data warehouses needed by all businesses that have multiple data sources, need real-time big data analysis and visualization, leverage technologies such as machine learning and artificial intelligence, do data mining or are interested in data science:
Research by ResearchandMarkets predicts that the cloud data warehouse market will reach 10.42 billion in the period 2022-2026, with an annual growth rate of 22.56%. Allied Market Research estimates that by 2028, the global data warehouse market will be $51.18 billion.
• Among data solutions, data warehouses stand out as the solution with the highest adoption rate with 54%.
Statista data estimates that by 2022, three-in-5 of enterprise data is stored in the cloud.
Only 18% of IT managers say their data warehouses are located on-premise. This statistic shows that cloud data warehouse technologies are heavily used.
• By 2025, data mining is projected to account for a quarter of the data warehouse market.
Almost half (47%) of IT managers say their data warehouses are located in public clouds.
Another study found that 52% of respondents identified the need for “faster analytical processing” as an important element of their data warehouse roadmap.
The U.S. Bureau of Labor Statistics expects a more than 30% increase in data science positions through 2030.
2022 data management, data warehousing, and data warehousing technology trends
In the light of the indicators and statistics listed above, it can be easily said that data warehousing technology has become the new norm in data management. An industry that has received so much attention is also being shaped by new trends to respond to the needs of businesses in an agile way.
1 . Multi-cloud technologies are becoming widespread. More and more data and applications are moving to the cloud, and this data migration requires business leaders to implement complex strategies. A survey conducted by the International Data Corporation (IDC) in 2021 revealed that 82% of enterprises are currently using multi-cloud (multi-cloud) or plan to use it in 2022, while it is becoming common for data management systems and data warehouses to run in multiple clouds, with systems running in different clouds interacting with each other.
2 . Artificial intelligence is positioned as a groundbreaking technology. As in every industry, artificial intelligence and machine learning in data management automate workloads that are considered heavy for human resources so that businesses can make better business decisions, relieving the hands of businesses in many areas from sales to customer satisfaction, from business intelligence to warehouse management.
3 . The concept of integration platform as a service is on the rise. As multi-cloud systems and cross-cloud interaction increase, so do providers of integration platform as a service (iPaaS) for integrating data and applications running in public and private clouds. Integration platform providers that share data through application programming interfaces (APIs) and provide security in this way offer a way to combine incoming data into a single data warehouse.
4 . The data mart approach is gaining popularity. By focusing on a specific line of business and delivering ingested insights only to the relevant group of users for better insights, data marts make it easy to turn Big Data into meaningful outputs as a line-of-business or department-focused version of the data warehouse.
5 . The column-storage model stands out. In the case of advanced analytical queries, column storage technology is used to reduce query times and efficiently use disk space in the Big Data warehouse. This technology, which helps easy decision-making by better structuring data pools, is often called the future of business intelligence.
Google’s serverless enterprise data warehouse solution: BigQuery
Google, one of the largest cloud service providers in the market, is helping businesses stay competitive with BigQuery, a fully managed, serverless enterprise data warehousing solution. BigQuery, which is used to cost-effectively initiate data analytics and accelerate the digital transformation journey, combined with tools such as Pub/Sub, Dataflow, Looker provided by Google Cloud and services such as data warehouse modernization, transforms businesses into organizations that make easier decisions and achieve agility in business processes.
As Global IT, Google’s first cloud partner in Turkey, we offer Google’s data warehousing and data management solutions, especially BigQuery, to businesses in Turkey. You can use the form below to meet our 15 years of experience in the sector, the 3,300 projects we have completed and the success stories we have created in the e-commerce processes of companies such as Hepsiburada, Modanisa, Sefamerve, Toyzzshop and discover what we can do for you.