Data Warehouse As A Service: What It Is & Who Needs It

October 25, 2024 | 5 minutes read


Editorial Team

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Data Warehouse As A Service: What It Is & Who Needs It

The term Software as a Service (SaaS) has become pretty popular in the business world. Even if they haven’t used the service as such, most businesses have at least heard of it. Fewer have heard of Data Warehouse as a Service (DWaaS). The latter is, meanwhile, quite useful, especially for those who generate large volumes of data.


Who Needs DWaaS?


Overall, DWaaS can be useful to any business but, of course, it’s not always cost-effective. Prime candidates for this are companies that deal with


  • large datasets

  • complex queries

  • analytics-heavy operations.

It’s hard to tell if DWaaS will pay off for your business. The safest option here is data warehouse consulting. Experts will assess your current infrastructure, analyze your business goals, and see how DWaaS fits (or fails to fit) there.


For a quick self-assessment, below are the most common signs your business might benefit from DWaaS.


  • You’re struggling with multiple data sources.

If that’s the issue, DWaaS will consolidate data into one central location. Its analysis will be much more effective in that way.


  • You’re spending too much time on management tasks.

Managing, cleaning, and integrating your data, indeed, eats up time. DWaaS automates much of this.


  • Your decisions are often inefficient due to data delays.

Slow access to actionable data is a huge issue. DWaaS provides faster querying so your decisions get smarter.


4 Elements of DWaaS


DWaaS, in fact, implies outsourcing all processes related to your data warehouse. Below are the four key elements that make it work.


1 Configuration and Development


Before anything is built, data warehouse consultants analyze your current data sources and IT infrastructure. They determine how best to design and develop a data warehouse for you.


2 Data Integration


Now, the warehouse is configured and you (not you but the experts) need to integrate it with your existing software systems. You want every software solution — CRM, ERP, financial systems, etc. — to “feed” data into the warehouse.


This step is pretty important because thanks to it, you avoid data silos and have access to complete accurate data.


3 Data Migration and Cleaning


To be useful, a data warehouse needs clean, accurate data (that’s exactly why the previous step was so important). Data migration and cleaning are thus essential processes within DWaaS. Thanks to them, the service ensures that the data being transferred to the warehouse is consistent, error-free, and ready for analysis. If it’s not, experts will


  • correct inaccuracies

  • eliminate duplicates

  • standardize data formats during migration.

Clean data leads to better analytics. You’ll make fewer errors in decision-making and have more reliable insights for business strategy.


4 DWH Administration


Once your data warehouse is operational, it will require continuous administration. This includes


  • monitoring performance

  • integrating new data sources

  • making necessary adjustments to improve performance over time.

The administration part is necessary to ensure the system remains optimized and secure. It’s super convenient to have it outsourced because you don’t dedicate internal resources to manage or maintain it on your own. Your DWaaS provider handles this for you. Your team, in turn, is free to focus on core activities.


Alternatives to DWaaS


We started by discussing who needs DWaaS. So yes, that implies that not every business requires full service like this. Your needs might be more specific. That is, you may need help with one aspect of data warehouse management rather than an all-encompassing solution. Below are some alternatives to consider.


  • Data Warehouse Consulting

Let’s say you’re still unsure where to start with your data warehouse (or whether you should start at all). If so, DW consultants will assess your current data environment. Based on your business goals, they’ll recommend strategies for data management.


More specifically, this service focuses on assessing your existing infrastructure and identifying if anything could be improved there. Then, consultants provide a roadmap for building or optimizing a data warehouse. Your business thus gains a clearer understanding of what’s necessary to achieve its data goals.


  • Data Warehouse Solutions Development

Sometimes, you just need help building the data warehouse itself. So you turn to professionals to custom-built data warehousing solutions from scratch. Experts then build a tailored data warehouse solution that aligns with your data sources, volume, and analytical requirements. This typically covers the architecture, development, and setup of the warehouse.


  • Data Warehouse Integration

Many businesses have existing systems and software but lack seamless data flow. DW integration services help connect your data warehouse to your existing enterprise applications (e.g., CRM, ERP, financial systems).


That is, specialists integrate your new or existing data warehouse with your business systems. As a result, all your data feeds into the central repository for comprehensive analysis. You get a unified data view across all departments. The beauty of it is that every system contributes to your business intelligence without building an entirely new system.


  • Data Warehouse Modernization

Perhaps, you already have a data warehouse but it’s somewhat outdated. Then, you need DW modernization. This involves upgrading both the hardware and software components. The result is a data warehouse that performs optimally with today’s technologies.


Modernization can, among all else, include upgrading database technologies, improving data pipelines, or integrating new tools to enhance performance, security, and analytics. Again, the task is to use what you have most efficiently instead of building something new.


  • Data Warehouse Migration

If your business is moving to the cloud (or simply between platforms), you’ll need DW migration services. DW migration includes transferring data, restructuring formats, and ensuring data quality remains intact. It allows businesses to move to modern data storage solutions without risking data loss or compromising the integrity of data. Sometimes, this migration can open up new opportunities for improved analytics. Most importantly, these services prevent operational disruptions which are usually costly (not to mention the negative effect on employees’ and clients’ satisfaction).


DWaaS is, beyond any doubt, a powerful solution. Of course, it won’t be cost-effective for every business. So your first step is getting a consultation from a good data warehouse service. Even if it turns out that you don’t need DWaaS, the experts may advise you to modernize your DW or they may give you insights into how to make its management cheaper.