{"id":1695,"date":"2011-06-10T00:00:00","date_gmt":"2011-06-10T00:00:00","guid":{"rendered":"https:\/\/www.techopedia.com\/definition\/data-warehouse\/"},"modified":"2024-12-24T14:40:41","modified_gmt":"2024-12-24T14:40:41","slug":"data-warehouse","status":"publish","type":"definition","link":"https:\/\/www.techopedia.com\/definition\/1184\/data-warehouse-dw","title":{"rendered":"Data Warehouse (DW)"},"content":{"rendered":"<h2><span id=\"what_is_a_data_warehouse_dw\">What Is a Data Warehouse (DW)?<\/span><\/h2>\n<p>A data warehouse (DW) is a centralized <a href=\"https:\/\/www.techopedia.com\/definition\/1240\/database-repository\">repository that stores large volumes of structured data<\/a> from multiple sources. It pulls information from various sources \u2013 like sales reports, customer data, and inventory records \u2013 and organizes it into one central location.<\/p>\n<p>The idea is to make it easy for you to analyze and pull insights without digging through multiple systems.<\/p>\n<p>Unlike the <a href=\"https:\/\/www.techopedia.com\/definition\/1185\/database-db\">databases<\/a> you use for daily operations, a data warehouse is built for big-picture stuff. It&#8217;s great for spotting trends, generating reports, and helping teams make smarter decisions. Think of it as the foundation for business intelligence tools and <a href=\"https:\/\/www.techopedia.com\/definition\/32370\/advanced-analytics\">advanced analytics<\/a>.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.techopedia.com\/wp-content\/uploads\/2011\/06\/What-Is-a-Data-Warehouse-DW.jpg\" alt=\"What Is a Data Warehouse (DW)?\" width=\"1200\" height=\"705\" class=\"aligncenter wp-image-373099\" srcset=\"https:\/\/www.techopedia.com\/wp-content\/uploads\/2011\/06\/What-Is-a-Data-Warehouse-DW.jpg 2048w, https:\/\/www.techopedia.com\/wp-content\/uploads\/2011\/06\/What-Is-a-Data-Warehouse-DW-300x176.jpg 300w, https:\/\/www.techopedia.com\/wp-content\/uploads\/2011\/06\/What-Is-a-Data-Warehouse-DW-1024x602.jpg 1024w, https:\/\/www.techopedia.com\/wp-content\/uploads\/2011\/06\/What-Is-a-Data-Warehouse-DW-768x452.jpg 768w, https:\/\/www.techopedia.com\/wp-content\/uploads\/2011\/06\/What-Is-a-Data-Warehouse-DW-1536x903.jpg 1536w, https:\/\/www.techopedia.com\/wp-content\/uploads\/2011\/06\/What-Is-a-Data-Warehouse-DW-1200x705.jpg 1200w, https:\/\/www.techopedia.com\/wp-content\/uploads\/2011\/06\/What-Is-a-Data-Warehouse-DW-1980x1164.jpg 1980w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<div class=\"su-note\"  style=\"border-color:#e5e54c;border-radius:3px;-moz-border-radius:3px;-webkit-border-radius:3px;\"><div class=\"su-note-inner su-u-clearfix su-u-trim\" style=\"background-color:#FFFF66;border-color:#ffffff;color:#333333;border-radius:3px;-moz-border-radius:3px;-webkit-border-radius:3px;\">\n<h2><span id=\"key_takeaways\">Key Takeaways<\/span><\/h2>\n<ul>\n<li>A data warehouse stores structured data for analysis and decision-making.<\/li>\n<li>It consists of staging, integration, and access layers supported by ETL processes.<\/li>\n<li>Industries like finance, healthcare, and retail use data warehouses for reporting and analytics.<\/li>\n<li>Types include on-premises, cloud-based, and hybrid systems with real-time or batch processing.<\/li>\n<li>Data warehouses offer scalability and efficiency but have challenges like cost and complexity.<\/li>\n<\/ul>\n<\/div><\/div>\n<div>\n    <section class=\"toc-sticky w-100 bg-white \">\n        <div class=\"toc-sticky__container container\">\n            <div class=\"toc-sticky__open d-flex align-items-end\" data-bs-toggle=\"collapse\"\n                 aria-controls=\"multiCollapse1\"\n                 data-bs-target=\"#multiCollapse1\">\n                <button\n                        class=\"btn btn-primary collapse-action-btn p-1 rounded-circle\"\n                        type=\"button\"\n                >\n                    <i class=\"icon-chevron-up\"><\/i>\n                <\/button>\n                <span id=\"toc-current-title\" class=\"d-flex align-items-center\">\n                    Table of Contents\n                <\/span>\n                <span class=\"toc-main-title-permanent\">Table of Contents<\/span>\n            <\/div>\n            <div\n                    class=\"collapse my-3\"\n                    id=\"multiCollapse1\"\n            >\n                <ol class=\"StepProgress\">\n                                                                        <li class=\"StepProgress-item current\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"what_is_a_data_warehouse_dw\"\n                               onclick=handleScrollToTitle(\"what_is_a_data_warehouse_dw\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">What Is a Data Warehouse (DW)?<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                                                        <li class=\"StepProgress-item\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"key_takeaways\"\n                               onclick=handleScrollToTitle(\"key_takeaways\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">Key Takeaways<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                                                        <li class=\"StepProgress-item\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"the_history_of_the_data_warehouse\"\n                               onclick=handleScrollToTitle(\"the_history_of_the_data_warehouse\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">The History of the Data Warehouse<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                                                        <li class=\"StepProgress-item\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"data_warehouse_architecture\"\n                               onclick=handleScrollToTitle(\"data_warehouse_architecture\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">Data Warehouse Architecture<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                                                        <li class=\"StepProgress-item\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"olap_and_oltp\"\n                               onclick=handleScrollToTitle(\"olap_and_oltp\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">OLAP and OLTP<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                                                        <li class=\"StepProgress-item\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"data_warehouse_schemas\"\n                               onclick=handleScrollToTitle(\"data_warehouse_schemas\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">Data Warehouse Schemas<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                                                        <li class=\"StepProgress-item\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"data_warehouses_vs_other_types_of_data_storage\"\n                               onclick=handleScrollToTitle(\"data_warehouses_vs_other_types_of_data_storage\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">Data Warehouses vs. Other Types of Data Storage<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                                                        <li class=\"StepProgress-item\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"types_of_data_warehouses\"\n                               onclick=handleScrollToTitle(\"types_of_data_warehouses\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">Types of Data Warehouses<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                                                        <li class=\"StepProgress-item\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"data_warehouse_use_cases\"\n                               onclick=handleScrollToTitle(\"data_warehouse_use_cases\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">Data Warehouse Use Cases<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                                                        <li class=\"StepProgress-item\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"data_warehouse_pros_and_cons\"\n                               onclick=handleScrollToTitle(\"data_warehouse_pros_and_cons\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">Data Warehouse Pros and Cons<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                                                        <li class=\"StepProgress-item\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"the_bottom_line\"\n                               onclick=handleScrollToTitle(\"the_bottom_line\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">The Bottom Line<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                                                        <li class=\"StepProgress-item\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"faqs\"\n                               onclick=handleScrollToTitle(\"faqs\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">FAQs<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                                                        <li class=\"StepProgress-item\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"references\"\n                               onclick=handleScrollToTitle(\"references\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">References<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                    <\/ol>\n                <div class=\"toc-sticky__container__disperse\"><\/div>\n                <div class=\"toc-sticky__btn-top justify-content-center\">\n                    <button class=\"btn btn-link d-flex align-items-center\" onclick={btnTop()}><p>Show Full Guide<\/p><img decoding=\"async\"\n                                src=\"\/wp-content\/plugins\/table-of-contents\/assets\/images\/arrow-up-circle.svg\"\n                                alt=\"arrow-up-circle\">\n                    <\/button>\n                <\/div>\n            <\/div>\n        <\/div>\n    <\/section>\n    <div class=\"toc-sticky-list\">\n        <div class=\"toc-sticky__container container\">\n            <div class=\"toc-sticky__open d-flex align-items-end\" data-bs-toggle=\"collapse\" aria-controls=\"multiCollapse2\" data-bs-target=\"#multiCollapse2\">\n                <button class=\"btn btn-primary collapse-action-btn p-1 rounded-circle\"\n                        type=\"button\">\n                    <i class=\"icon-chevron-up up\"><\/i>\n                <\/button>\n                <span id=\"toc-current-title\" class=\"d-flex align-items-center\">\n                    Table of Contents\n                <\/span>\n            <\/div>\n            <div  class=\"collapse my-3\" id=\"multiCollapse2\">\n                <ol class=\"StepProgress\">\n                    \t\t\t\t\t \t\t\t\t\t                                                     <li class=\"StepProgress-item current \">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"what_is_a_data_warehouse_dw\"\n                                   onclick=handleScrollToTitle(\"what_is_a_data_warehouse_dw\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">What Is a Data Warehouse (DW)?<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                    \t\t\t\t\t \t\t\t\t\t                                                     <li class=\"StepProgress-item \">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"key_takeaways\"\n                                   onclick=handleScrollToTitle(\"key_takeaways\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">Key Takeaways<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                    \t\t\t\t\t \t\t\t\t\t                                                     <li class=\"StepProgress-item \">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"the_history_of_the_data_warehouse\"\n                                   onclick=handleScrollToTitle(\"the_history_of_the_data_warehouse\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">The History of the Data Warehouse<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                    \t\t\t\t\t \t\t\t\t\t\n\t\t\t\t\t\t <span class=\"show_moretoc\">Show Full Guide<\/span>\n\t\t\t\t\t\t \t\t\t\t\t \t\t\t\t\t\t  \t\t\t\t\t                                                      <li class=\"StepProgress-item ms_hidetoc\">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"data_warehouse_architecture\"\n                                   onclick=handleScrollToTitle(\"data_warehouse_architecture\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">Data Warehouse Architecture<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                    \t\t\t\t\t \t\t\t\t\t \t\t\t\t\t\t  \t\t\t\t\t                                                      <li class=\"StepProgress-item ms_hidetoc\">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"olap_and_oltp\"\n                                   onclick=handleScrollToTitle(\"olap_and_oltp\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">OLAP and OLTP<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                    \t\t\t\t\t \t\t\t\t\t \t\t\t\t\t\t  \t\t\t\t\t                                                      <li class=\"StepProgress-item ms_hidetoc\">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"data_warehouse_schemas\"\n                                   onclick=handleScrollToTitle(\"data_warehouse_schemas\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">Data Warehouse Schemas<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                    \t\t\t\t\t \t\t\t\t\t \t\t\t\t\t\t  \t\t\t\t\t                                                      <li class=\"StepProgress-item ms_hidetoc\">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"data_warehouses_vs_other_types_of_data_storage\"\n                                   onclick=handleScrollToTitle(\"data_warehouses_vs_other_types_of_data_storage\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">Data Warehouses vs. Other Types of Data Storage<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                    \t\t\t\t\t \t\t\t\t\t \t\t\t\t\t\t  \t\t\t\t\t                                                      <li class=\"StepProgress-item ms_hidetoc\">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"types_of_data_warehouses\"\n                                   onclick=handleScrollToTitle(\"types_of_data_warehouses\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">Types of Data Warehouses<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                    \t\t\t\t\t \t\t\t\t\t \t\t\t\t\t\t  \t\t\t\t\t                                                      <li class=\"StepProgress-item ms_hidetoc\">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"data_warehouse_use_cases\"\n                                   onclick=handleScrollToTitle(\"data_warehouse_use_cases\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">Data Warehouse Use Cases<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                    \t\t\t\t\t \t\t\t\t\t \t\t\t\t\t\t  \t\t\t\t\t                                                      <li class=\"StepProgress-item ms_hidetoc\">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"data_warehouse_pros_and_cons\"\n                                   onclick=handleScrollToTitle(\"data_warehouse_pros_and_cons\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">Data Warehouse Pros and Cons<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                    \t\t\t\t\t \t\t\t\t\t \t\t\t\t\t\t  \t\t\t\t\t                                                      <li class=\"StepProgress-item ms_hidetoc\">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"the_bottom_line\"\n                                   onclick=handleScrollToTitle(\"the_bottom_line\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">The Bottom Line<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                    \t\t\t\t\t \t\t\t\t\t \t\t\t\t\t\t  \t\t\t\t\t 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const headerHeightDifference = window.innerWidth < 992 ? -30 : -15;\n        window.scrollTo({\n            top: el.offsetTop - 60 - headerHeightDifference - 10,\n        });\n    }\n<\/script>\n\n<h2><span id=\"the_history_of_the_data_warehouse\">The History of the Data Warehouse<\/span><\/h2>\n<p>Why were data warehouses created? Data warehousing began in the 1980s to address the challenge of organizing large amounts of <a href=\"https:\/\/www.techopedia.com\/the-dangers-of-data-silos-a-data-scientists-thoughts-on-locking-away-data\">scattered data<\/a> for analysis. Traditional databases handled daily operations but lacked the capacity for long-term, cross-system data analysis.<\/p>\n<p>Here are some of the <strong>key milestones<\/strong>:<\/p>\n<ul>\n<li><strong>1980s<\/strong>: <a href=\"https:\/\/www.astera.com\/type\/blog\/data-warehouse-concepts\/\" target=\"_blank\">Bill Inmon and Ralph Kimball<\/a> developed foundational concepts like subject-oriented and <a href=\"https:\/\/www.techopedia.com\/2\/28470\/enterprise\/data-centers\/data-warehousing-101\">dimensional data modeling<\/a>.<\/li>\n<li><strong>1990s<\/strong>: Business intelligence tools and <a href=\"https:\/\/www.techopedia.com\/definition\/28432\/enterprise-resource-planning-system-erp-system\">ERP systems<\/a> increased data warehouse adoption.<\/li>\n<li><strong>2000s<\/strong>: <a href=\"https:\/\/www.techopedia.com\/definition\/2786\/massively-parallel-processing-mpp\">Massively parallel processing<\/a> (MPP) systems improved data handling for large <a href=\"https:\/\/www.techopedia.com\/definition\/3348\/data-set-ibm-mainframe\">data sets<\/a>.<\/li>\n<\/ul>\n<p>From the 2010&#8217;s there was a major shift to the <a href=\"https:\/\/www.techopedia.com\/cloud-data-warehouse-impact\">cloud data warehouse<\/a>. Cloud platforms like <a href=\"https:\/\/www.snowflake.com\/\" target=\"_blank\">Snowflake<\/a> and <a href=\"https:\/\/www.techopedia.com\/definition\/31282\/bigquery\">Google BigQuery<\/a> introduced scalable storage and processing. Today, real-time data warehousing and AI-driven analytics are the standard.<\/p>\n<h2><span id=\"data_warehouse_architecture\">Data Warehouse Architecture<\/span><\/h2>\n<p>Data warehouse architecture consists of <strong>three main layers<\/strong>:<\/p>\n<div class=\"su-accordion su-u-trim\">\n<div class=\"su-spoiler su-spoiler-style-fancy su-spoiler-icon-plus\" data-scroll-offset=\"0\" data-anchor-in-url=\"no\"><div class=\"su-spoiler-title\" tabindex=\"0\" role=\"button\"><span class=\"su-spoiler-icon\"><\/span><strong>Staging layer<\/strong><\/div><div class=\"su-spoiler-content su-u-clearfix su-u-trim\"> Collects and stores <a href=\"https:\/\/www.techopedia.com\/definition\/1230\/raw-data\">raw data<\/a> from multiple sources temporarily. <\/div><\/div>\n<div class=\"su-spoiler su-spoiler-style-fancy su-spoiler-icon-plus su-spoiler-closed\" data-scroll-offset=\"0\" data-anchor-in-url=\"no\"><div class=\"su-spoiler-title\" tabindex=\"0\" role=\"button\"><span class=\"su-spoiler-icon\"><\/span><strong>Data integration layer<\/strong><\/div><div class=\"su-spoiler-content su-u-clearfix su-u-trim\"> <a href=\"https:\/\/www.techopedia.com\/definition\/28290\/data-integration\">Cleans, transforms, and integrates data<\/a> into a structured format using <a href=\"https:\/\/www.techopedia.com\/definition\/24170\/extract-transform-load-etl\">extract, transform, load<\/a> (ETL) \u2013 extracting data from sources, transforming it, and loading it into the warehouse. <\/div><\/div>\n<div class=\"su-spoiler su-spoiler-style-fancy su-spoiler-icon-plus su-spoiler-closed\" data-scroll-offset=\"0\" data-anchor-in-url=\"no\"><div class=\"su-spoiler-title\" tabindex=\"0\" role=\"button\"><span class=\"su-spoiler-icon\"><\/span><strong>Access layer<\/strong><\/div><div class=\"su-spoiler-content su-u-clearfix su-u-trim\"> <a href=\"https:\/\/www.techopedia.com\/definition\/32090\/infrastructure-layer\">Provides data for querying, reporting, and analysis<\/a> through business intelligence tools. <\/div><\/div>\n<\/div>\n<p>Modern architectures generally use cloud platforms for scalability and flexibility without on-site physical infrastructure.<\/p>\n<h2><span id=\"olap_and_oltp\">OLAP and OLTP<\/span><\/h2>\n<p><a href=\"https:\/\/www.techopedia.com\/definition\/1225\/online-analytical-processing-olap\">Online analytical processing<\/a> (OLAP) analyzes large data sets to identify trends and patterns, while <a href=\"https:\/\/www.techopedia.com\/definition\/24436\/online-transaction-processing-oltp\">online transaction processing<\/a> (OLTP) manages real-time transactions like sales and inventory updates.<\/p>\n<p>Data warehouses are optimized for OLAP, storing historical data for analysis and decision-making. Data warehousing focuses on <a href=\"https:\/\/www.techopedia.com\/definition\/14647\/data-aggregation\">aggregating data<\/a> for complex queries and reporting.<\/p>\n<p>Here are two examples of OLAP vs. OLTP:<\/p>\n<ul>\n<li><strong>OLAP<\/strong>: Analyzing yearly sales to identify trends.<\/li>\n<\/ul>\n<ul>\n<li><strong>OLTP<\/strong>: Updating inventory after a customer purchase.<\/li>\n<\/ul>\n<h2><span id=\"data_warehouse_schemas\">Data Warehouse Schemas<\/span><\/h2>\n<p>Schemas are organizational frameworks that define how data is structured in data warehouse systems. The most common schemas are the star schema and the snowflake schema:<br \/>\n<div class=\"su-accordion su-u-trim\">\n<div class=\"su-spoiler su-spoiler-style-fancy su-spoiler-icon-plus\" data-scroll-offset=\"0\" data-anchor-in-url=\"no\"><div class=\"su-spoiler-title\" tabindex=\"0\" role=\"button\"><span class=\"su-spoiler-icon\"><\/span><strong>Star schema<\/strong><\/div><div class=\"su-spoiler-content su-u-clearfix su-u-trim\"> <a href=\"https:\/\/www.techopedia.com\/definition\/14724\/star-schema\">Organizes data into a central fact table<\/a> surrounded by dimension tables. <\/div><\/div>\n<div class=\"su-spoiler su-spoiler-style-fancy su-spoiler-icon-plus su-spoiler-closed\" data-scroll-offset=\"0\" data-anchor-in-url=\"no\"><div class=\"su-spoiler-title\" tabindex=\"0\" role=\"button\"><span class=\"su-spoiler-icon\"><\/span><strong>Snowflake schema<\/strong><\/div><div class=\"su-spoiler-content su-u-clearfix su-u-trim\"> <a href=\"https:\/\/www.techopedia.com\/definition\/28068\/snowflake-schema\">Normalizes dimension tables<\/a> by splitting them into multiple related tables. <\/div><\/div>\n<\/div>\nThe star schema is faster for queries and better for simple analytics. The snowflake schema is better for data integrity and storage but can slow performance. The choice depends on the system&#8217;s priorities.<\/p>\n<h2><span id=\"data_warehouses_vs_other_types_of_data_storage\">Data Warehouses vs. Other Types of Data Storage<\/span><\/h2>\n<p>Here&#8217;s the data warehouse (DW\/DWH) meaning, and how it compares to other storage options:<\/p>\n<div class=\"su-table su-table-responsive su-table-alternate\">\n<table>\n<tbody>\n<tr>\n<th><strong>Type<\/strong><\/th>\n<th><strong>Purpose<\/strong><\/th>\n<th><strong>Key features<\/strong><\/th>\n<th><strong>Use cases<\/strong><\/th>\n<\/tr>\n<tr>\n<td><strong>Data warehouse<\/strong><\/td>\n<td>Stores structured data for analysis.<\/td>\n<td>Structured, optimized for OLAP, historical insights.<\/td>\n<td>Reporting, trend analysis, <a href=\"https:\/\/www.techopedia.com\/definition\/26502\/business-intelligence-20-bi-20\">business intelligence<\/a>.<\/td>\n<\/tr>\n<tr>\n<td><strong>Data lake<\/strong><\/td>\n<td><a href=\"https:\/\/www.techopedia.com\/definition\/30172\/data-lake\">Stores raw, unstructured, or semi-structured data<\/a>.<\/td>\n<td>Flexible formats; supports advanced analytics.<\/td>\n<td><a href=\"https:\/\/www.techopedia.com\/definition\/27745\/big-data\">Big data<\/a>, <a href=\"https:\/\/www.techopedia.com\/definition\/8181\/machine-learning-ml\">machine learning<\/a> (ML), real-time analytics.<\/td>\n<\/tr>\n<tr>\n<td><strong>Operational database<\/strong><\/td>\n<td><a href=\"https:\/\/www.techopedia.com\/definition\/5711\/operational-database-odb\">Manages real-time transactional data<\/a>.<\/td>\n<td>Optimized for OLTP, quick reads\/writes.<\/td>\n<td>Transactions, inventory management.<\/td>\n<\/tr>\n<tr>\n<td><strong>Hybrid systems<\/strong><\/td>\n<td>Combines features of data warehouses and data lakes.<\/td>\n<td>Handles <a href=\"https:\/\/www.techopedia.com\/definition\/30363\/structured-data\">structured<\/a> and unstructured data.<\/td>\n<td>Mixed-use cases requiring versatility.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<h2><span id=\"types_of_data_warehouses\">Types of Data Warehouses<\/span><\/h2>\n<p>Data warehouses can be categorized based on deployment, processing, and hybrid solutions.<\/p>\n<p>Here&#8217;s a comparison:<\/p>\n<div class=\"su-table su-table-responsive su-table-alternate\">\n<table>\n<tbody>\n<tr>\n<th><strong>Type<\/strong><\/th>\n<th><strong>Description<\/strong><\/th>\n<th><strong>Advantages<\/strong><\/th>\n<th><strong>Use cases<\/strong><\/th>\n<\/tr>\n<tr>\n<td><strong>On-premises<\/strong><\/td>\n<td><a href=\"https:\/\/www.techopedia.com\/definition\/32287\/on-premises-cloud-infrastructure\">Hosted on a company&#8217;s infrastructure<\/a>.<\/td>\n<td>Full control, secure for sensitive data.<\/td>\n<td>Industries with strict compliance or security needs.<\/td>\n<\/tr>\n<tr>\n<td><strong>Cloud data warehouse<\/strong><\/td>\n<td><a href=\"https:\/\/www.techopedia.com\/cloud-data-warehouse-impact\">Hosted on cloud platforms<\/a> like Snowflake or Amazon Redshift.<\/td>\n<td>Scalable, cost-effective, minimal maintenance.<\/td>\n<td>Businesses requiring flexibility and fast scaling.<\/td>\n<\/tr>\n<tr>\n<td><strong>Hybrid<\/strong><\/td>\n<td><a href=\"https:\/\/www.techopedia.com\/definition\/29353\/hybrid-database\">Combines on-premises and cloud solutions<\/a>.<\/td>\n<td>Flexible, balances security and scalability.<\/td>\n<td>Transitioning to the cloud, managing sensitive data locally.<\/td>\n<\/tr>\n<tr>\n<td><strong>Real-time processing<\/strong><\/td>\n<td><a href=\"https:\/\/www.techopedia.com\/definition\/31742\/real-time-data-processing\">Processes data as it is received<\/a>.<\/td>\n<td>Provides immediate insights.<\/td>\n<td>Financial trading, logistics, monitoring systems.<\/td>\n<\/tr>\n<tr>\n<td><strong>Batch processing<\/strong><\/td>\n<td><a href=\"https:\/\/www.techopedia.com\/definition\/5417\/batch-processing\">Processes data in scheduled intervals<\/a>.<\/td>\n<td>Efficient for historical trend analysis.<\/td>\n<td>End-of-day reporting, large-scale data aggregation.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<h2><span id=\"data_warehouse_use_cases\">Data Warehouse Use Cases<\/span><\/h2>\n<p>What is the primary purpose of a data warehouse? As we&#8217;ve covered, it&#8217;s to store and organize structured data for analysis, reporting, and decision-making. So let&#8217;s take a look at some real-life use cases. This can apply to industries from finance and healthcare to retail and <a href=\"https:\/\/www.techopedia.com\/definition\/5570\/telecommunications\">telecommunications<\/a>:<\/p>\n<div class=\"su-accordion su-u-trim\">\n<div class=\"su-spoiler su-spoiler-style-fancy su-spoiler-icon-plus\" data-scroll-offset=\"0\" data-anchor-in-url=\"no\"><div class=\"su-spoiler-title\" tabindex=\"0\" role=\"button\"><span class=\"su-spoiler-icon\"><\/span><strong>Reporting<\/strong><\/div><div class=\"su-spoiler-content su-u-clearfix su-u-trim\"> Generate dashboards and periodic reports for operational and strategic insights. <\/div><\/div>\n<div class=\"su-spoiler su-spoiler-style-fancy su-spoiler-icon-plus su-spoiler-closed\" data-scroll-offset=\"0\" data-anchor-in-url=\"no\"><div class=\"su-spoiler-title\" tabindex=\"0\" role=\"button\"><span class=\"su-spoiler-icon\"><\/span><strong>Predictive analytics<\/strong><\/div><div class=\"su-spoiler-content su-u-clearfix su-u-trim\"> <a href=\"https:\/\/www.techopedia.com\/definition\/predictive-analytics\">Identify future trends using historical data<\/a> to improve forecasting and decision-making. <\/div><\/div>\n<div class=\"su-spoiler su-spoiler-style-fancy su-spoiler-icon-plus su-spoiler-closed\" data-scroll-offset=\"0\" data-anchor-in-url=\"no\"><div class=\"su-spoiler-title\" tabindex=\"0\" role=\"button\"><span class=\"su-spoiler-icon\"><\/span><strong>Decision-making<\/strong><\/div><div class=\"su-spoiler-content su-u-clearfix su-u-trim\"> Provide reliable data for strategic planning, such as entering new markets or launching products. <\/div><\/div>\n<\/div>\n<h2><span id=\"data_warehouse_pros_and_cons\">Data Warehouse Pros and Cons<\/span><\/h2>\n<p>Data warehouse technology offers both benefits and challenges, depending on the organization&#8217;s needs and resources:<\/p>\n<div class=\"su-row\"><div class=\"su-column su-column-size-1-2\"><div class=\"su-column-inner su-u-clearfix su-u-trim\">\n<h3>Pros<\/h3>\n<div class=\"su-list\" style=\"margin-left:0px\">\n<ul>\n<li><i class=\"sui sui-check-circle\" style=\"color:#3CB371\"><\/i> Can handle large volumes of data as businesses grow<\/li>\n<li><i class=\"sui sui-check-circle\" style=\"color:#3CB371\"><\/i> Structured data allows for efficient querying and analysis<\/li>\n<li><i class=\"sui sui-check-circle\" style=\"color:#3CB371\"><\/i> Combines data from multiple sources for a single, reliable view<\/li>\n<\/ul>\n<\/div><\/div><\/div>\n<div class=\"su-column su-column-size-1-2 pros_icons_\"><div class=\"su-column-inner su-u-clearfix su-u-trim\">\n<h3>Cons<\/h3>\n<div class=\"su-list\" style=\"margin-left:0px\">\n<ul>\n<li><i class=\"sui sui-remove\" style=\"color:#e31f28\"><\/i> High initial setup and ongoing maintenance expenses.<\/li>\n<li><i class=\"sui sui-remove\" style=\"color:#e31f28\"><\/i> Requires specialized skills for implementation and management<\/li>\n<li><i class=\"sui sui-remove\" style=\"color:#e31f28\"><\/i> <a href=\"https:\/\/www.techopedia.com\/definition\/2228\/latency\">Time delays in processing and loading data<\/a> can impact real-time analysis<\/li>\n<\/ul>\n<\/div><\/div><\/div><\/div>\n<h2><span id=\"the_bottom_line\">The Bottom Line<\/span><\/h2>\n<p>The simple data warehouse definition is a system that centralizes structured data for analysis, supporting reporting, predictive modeling, and strategic planning.<\/p>\n<p>Good data warehouse management keeps things running smoothly and scalable, while newer data warehouse software like cloud platforms and <a href=\"https:\/\/www.techopedia.com\/definition\/190\/artificial-intelligence-ai\">AI<\/a> tools are changing the game.<\/p>\n<h2><span id=\"faqs\">FAQs<\/span><\/h2>\n<div class=\"man_faq_sec\" itemscope itemtype=\"https:\/\/schema.org\/FAQPage\"><\/time><section class=\"ms_faq ms_card \" ><div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\"><div class=\"accordionButton\"><h3 itemprop=\"name\">What is a data warehouse in simple terms?<\/h3> <\/div>\n<div class=\"accordionContent\" itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none;\"><p itemprop=\"text\">A data warehouse is a system that stores and organizes large amounts of structured data for analysis and reporting.<\/p>\r\n                <\/div><\/div><\/section>\n<section class=\"ms_faq ms_card \" ><div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\"><div class=\"accordionButton\"><h3 itemprop=\"name\">What is the difference between a data warehouse and a database?<\/h3> <\/div>\n<div class=\"accordionContent\" itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none;\"><p itemprop=\"text\">A data warehouse is optimized for analyzing historical data, while a database is designed for managing real-time transactions and operations.<\/p>\r\n                <\/div><\/div><\/section>\n<section class=\"ms_faq ms_card \" ><div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\"><div class=\"accordionButton\"><h3 itemprop=\"name\">Is SQL a data warehouse?<\/h3> <\/div>\n<div class=\"accordionContent\" itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none;\"><p itemprop=\"text\">No, SQL is a programming language used to query and manage data in databases and data warehouses. <\/p>\r\n                <\/div><\/div><\/section>\n<section class=\"ms_faq ms_card \" ><div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\"><div class=\"accordionButton\"><h3 itemprop=\"name\">Is AWS a data warehouse?<\/h3> <\/div>\n<div class=\"accordionContent\" itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none;\"><p itemprop=\"text\">No, AWS is a cloud platform, but it offers data warehouse services like Amazon Redshift.<\/p>\r\n                <\/div><\/div><\/section>\n<div class=\"reference-content\">\n<div class=\"reference-heading reference-content-collapsible-heading\">\n<h2><span id=\"references\">References<\/span><\/h2>\n<\/div>\n<div class=\"reference-content-body\">\n<ol>\n<li><a href=\"https:\/\/www.astera.com\/type\/blog\/data-warehouse-concepts\/\" target=\"_blank\">Data Warehouse Concepts: Kimball vs. Inmon Approach | Astera<\/a> (Astera)<\/li>\n<li><a href=\"https:\/\/www.snowflake.com\/\" target=\"_blank\">The Snowflake AI Data Cloud &#8211; Mobilize Data, Apps, and AI<\/a> (Snowflake)<\/li>\n<\/ol>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>What Is a Data Warehouse (DW)? A data warehouse (DW) is a centralized repository that stores large volumes of structured data from multiple sources. It pulls information from various sources \u2013 like sales reports, customer data, and inventory records \u2013 and organizes it into one central location. The idea is to make it easy for [&hellip;]<\/p>\n","protected":false},"author":286520,"featured_media":373098,"comment_status":"open","ping_status":"closed","template":"","format":"standard","meta":{"_acf_changed":false,"_lmt_disableupdate":"no","_lmt_disable":"","om_disable_all_campaigns":false,"footnotes":""},"definitioncat":[227,222],"class_list":["post-1695","definition","type-definition","status-publish","format-standard","has-post-thumbnail","hentry","definitioncat-data-management","definitioncat-database"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.2 (Yoast SEO v24.5) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is Data Warehouse? 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