In the data warehouse industry, it is frequently stated that it is evolving and modernizing. However, have you ever wondered what this means and how it affects your business? It will explain what data warehouse modernization is, why it is important for enterprises to modernize their data warehouses, and why it is advantageous for enterprises to do so.
Modernizing a data warehouse – what is it?
Modernizing your data warehouse means upgrading existing infrastructure and implementing new technologies as they become available to improve speed and agility, meet changing business requirements, and stay relevant in the age of big data.
You can make better decisions with a data warehouse. But those days are long gone when a daily report at the end of the day would satisfy most of your business’s demands. Business entities are increasingly seeking real-time insights and actionable reports. Legacy data warehouses cannot meet these modern data demands; neither were they designed to do so.
To remain competitive in today’s fierce market, businesses need to update their data warehouses to handle the increasing volumes, velocity, and veracity of modern data.
Modernization methods for data warehouses
Modernizing data warehouses: where do you begin? How do you decide whether to rebuild from scratch or add to your existing data warehouse? Both are possible. Listed below are three methods for modernizing your data warehouse:
- Migrate from on-premises to the cloud
In the first step, you move your legacy on-premise systems to a cloud-based data warehouse. This approach has several advantages, including:
- Pay-as-you-go cloud computing helps you substantially reduce costs. You only pay for the storage and computation that you use.
- Cloud data warehouses offer greater scalability as data volume increases as you can easily expand.
- Support and maintenance costs are zero.
- It is much easier and quicker to integrate with other cloud-based services.
As a consequence of these advantages, we recommend that businesses take this approach when they wish to reduce the costs and complexity of maintaining on-premise infrastructure. It is even based on statistics that a majority of data warehouses are already in the cloud, partially or completely.
- Begin a new project
To launch a new data warehouse project, modern tools, platforms, and practices are used. As an example, you could use this launching opportunity to introduce a modernization initiative to a business unit launching an analytics initiative.
Compared to launching a new analytics project through legacy systems, this method brings the following advantages:
- As a result of today’s modern tools and cloud platforms, quick experiments, testing, and improvement can be done rapidly without heavy investments or long development times.
- By using Astera DW builder, you can scale and expand your analytics effort with minimal effort thanks to improved support for DW automation tools and solutions.
This approach is recommended to ensure better performance and quicker results if you have not yet built a data warehouse or feel like your existing data warehouse is not able to support your next analytics initiative.
- Expand your current data warehouse
For security and compliance reasons, businesses may choose to keep their on-premises systems. Still, businesses should not rule out modernizing their IT systems. When you want to modernize your data ecosystem, an extension of your existing data warehouse is the recommended method.
You can use this method to improve the scalability and agility of your data warehouse by integrating legacy data sources with modern tools and cloud platforms. Legacy components are not destroyed, but rather modernized. You then build on top of that to add new functionality by using modern tools for integration and automation.
The following are the benefits of this approach:
- A modern cloud platform provides the flexibility to expand processing power and storage capacity on demand, enhancing scalability and reducing hardware upgrade costs.
- You will be able to experiment with the modern platforms through your existing data warehouse, which will provide you a more controlled environment for testing the cloud and modern platforms.
Modernizing Data Warehouses: Key Drivers
The reasons for modernizing a data warehouse vary according to the business, but there are several general drivers. Here are some of these drivers.
The business drivers
Business requirements are among the most important drivers of data warehouse modernization, and rightfully so. Data warehouses can improve business decision-making and provide real ROI. In this article we will discuss the top business drivers for modernizing data warehouses:
- Developing new business requirements
- Business users and IT should collaborate more effectively
- An analytics and BI self-service solution
- Increasing competition
Usually, data warehouses are based on an architecture that includes many moving parts that function together as a whole to drive data-driven processes. Any IT team dealing with the maintenance and upkeep of a legacy data warehouse understands how challenging this can be. Consider these key technology factors when modernizing your DW:
- Platforms and systems that are compatible with modern hardware
- Warehouses that store data in real-time
- Integrating data
- Platforms and data types that are new
- The adoption of modern tools and best practices
The strategic drivers
Strategic drivers allow organizations to be proactive and plan for the future while ensuring a scalable, cost-effective data warehouse. We strive to make your data warehouse maintenance, upgrading, and upkeep easier, thus saving you time, money, and effort. A few key strategies include:
- Flexibility, scalability, and scalability are required
- Governance, security, and privacy improvements
- Reduced costs
The success of a company depends on business intelligence and data warehousing. You can access information regarding key elements like ERP, CRM, products, supply chain, and customers. A modern data warehouse offers immeasurable benefits, and it is not worthwhile to wait until legacy systems fail to deliver value before you begin the modernization process. Data warehouse modernization services are best handled by Polestar Solutions, which provides a powerful and reliable solution.
With the use of BI and DW technologies, information on organization status and business state is provided, enabling organizations to take the necessary steps and make the best possible business decisions.