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What Is Data Warehouse?
2 minutes read
Content Team

A data warehouse is a type of data management system that is supposed to support and enable businesses in the analysis of their data and business intelligence activities. Data warehouses usually contain a tremendous amount of historical data intended to help businesses in querying and analyzing their stored data. The data within a data warehouse is generally sourced from the outside, such as application log files, transactional systems, and other sources.

A data warehouse enables companies to centralize their large amounts of data in a single storage solution from multiple sources. Business analysts, data scientists, and other data specialists can take advantage of data warehouses to obtain valuable insights regarding their business and make informed decisions. Data engineers, data scientists, business analysts, and other decision-makers can access the data through a variety of tools such as business intelligence tools and other analytics applications. Because of the rigorous competition among companies, data and data analytics have become crucial methods for companies to thrive and stay in the game.

Business owners rely on the information experts can extract from a data warehouse to make reports, monitor business performance, and improve decision-making. Data warehouses are the source of the information that data scientists and analysts can use by storing data efficiently to manage the input and output of data to make the process of delivering query results as fast as possible for hundreds of thousands of people.

What are the Benefits of Data Warehouses?

Data warehouses help companies manage a large amount of data that can be outsourced from a variety of sources and multiple different methods. Those organizations can then analyze the ingested data to extract valuable information, thus improving the business’s decision-making ability as well as keeping a historical record. Data warehouses also help companies to improve data consistency and have easier access to enterprise data for the end users.

Companies that take advantage of data warehouses and have dedicated teams working on the said data tend to do better when it comes to enhancing their product and their product development process, marketing, production time, predicting future results, and overall improvement of business decisions. After the data has been entered and stored inside a data warehouse, it does not change and remains stable.

A well-designed data warehouse has many different and valuable implications, such as performing queries quickly and providing end users flexibility to reduce the amount of data for a detailed examination to meet the company’s demands. A data warehouse serves as the foundation upon which companies can generate business intelligence and make reports, dashboards, and other interfaces.

Why do you need a Data Warehouse?

Organizations use data lakes and warehouses to store and take advantage of that stored data, and both can be the most helpful tool in their domain. However, whether you need a data warehouse or not resides in the decision of what the company intends to do with the large volume of ingested data. The following will explain the best situation to prefer one over the other.

When should you prefer data lakes:

A company uses data lakes when it intends to store an unfathomable amount of raw and unfiltered data that the company can later use for different purposes. A data lake captures raw data from various sources such as business applications, social media, multiple devices, and more to later analyze and study it for the company’s benefit. A data lake stores all types of data, whether structured or non-structured, in its native raw form. Data scientists, analysts, engineers, and other data management experts can access the data that resides within a data lake. Data lakes are the best choice for a company that needs a low-cost storage solution to store both structured and non-structured data that the company intends to use later in the future for analytics and other business implications.

When to prefer Data Warehouses:

The specific use of a data warehouse is to store data for analysis pursuits. To analyze the data within a data warehouse, you need to prepare the data for analysis, meaning the data needs to be gathered, transformed, and contextualized in order for it to be of any use. The analysis aims to examine the data and generate business insights. Data lakes and data warehouses are common in one field that both can ingest and store an enormous quantity of data from a variety of different sources. When a company needs advanced analytics and aims explicitly to store historical data to generate business leads, data warehouses are likely the best choice.


Data warehouses are great tools that you can take advantage of and enhance your business’s capabilities. You can easily generate probable business leads and make better and informed decisions regarding marketing, product development, and enhancement of your existing product. If used and implemented correctly, this could be a game changer for your company and your company’s growth.

Then Why Axeno? Because, Here at Axeno, our goal is to provide professional services that we designed to facilitate the use of ever-evolving technology by enterprises and end users. We focus on improving user experiences and Digital Transformation services. Our services are designed to nurture your specific business needs and user requirements.