On premises or cloud data warehouses for Enterprise Data Analytics

On premises or cloud data warehouses for Enterprise Data Analytics

A comparison study to evaluate different aspects of cloud data and on premises to conclude which one is the best choice  

WHAT DOES A DATA WAREHOUSE LIKE CLOUD OR ON-PREMISES DO?  

A data warehouse also called an enterprise data warehouse, is a system that gives reports and data analysis to assist in the ongoing decisions making in the organization. For this reason, it is also considered to be a core component of business intelligence. DWs are the best solution for analytics reporting and business intelligence since transactional databases aren’t suited to analytical processing. Its main function is to offload analytical processing from transactional databases and provides faster processing speed through a data store, which allows the users to have access to any relevant data they search for.   

On-premises and cloud are the two types of enterprise data warehouses, and both are quite prevalent among their users. To choose between the two would become easy once we understand their benefits and challenges: –  

BENEFITS OF ON-PREMISES AND CLOUD DATA WAREHOUSE 

ON-PREMISES  

  • Complete control over the tech stack; with an on-premise deployment, an organization has complete control over the hardware and software, its use, who will have access to it, and where the data gets stored. In a breach or failure, an IT team doesn’t have to rely on third-party vendors to get the data and system back up and keep the business running.   
  • Local speed and performance; one of the biggest benefits of using on-premises is having a really good level of speed when you are looking for specific data, as information is stored in hardware form. The user can have access to it even if there is no network latency.   
  • Governance and regulatory compliance; it is easier to achieve data governance and regulatory compliance. Many organizations struggle to meet GDPR requirements as it is easier to locate and identify data.   

CLOUD DATA WAREHOUSE 

  • On-demand scalability; within a Cloud data warehouse, the problem of limited storage doesn’t come; that’s why data can flow easily as the capacity for its storage is limitless.   
  • Cost efficiency; by using cloud data warehouses, companies no longer have to buy physical servers, and they are required to pay for only what they need.   
  • Bundled capabilities such as IAM and analytics, cloud data warehouses can leverage other cloud services platforms, e.g., identity and access management services and data analytics tools.    
  • Security: Cloud data posture security is better than on-premises security; even though the risk is higher in cloud data warehouses, organizations invest heavily in physical and logical security tools. They secure their security controls with certifications such as ISO 27001 and SOC 2.   
  • System uptime and availability; cloud service providers focus quite diligently on the availability and reliability of their services. Therefore, a service level of 99.9% availability is seen in cloud services than on-premises. Even in failure, the cloud environment makes your data available within different time zones and regions. 

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CHALLENGES OF ON-PREMISE AND CLOUD DATA WAREHOUSE 

ON PREMISES 

  • An on-premise data warehouse cannot handle and adapt to bursts of activity that need more compute and memory work.   
  • While using On-premises, an organization loads all the memory in a storage device to the level of a peak, and only a portion of data is required at times; other storage is there to engross the space.     
  • This warehouse is not great when it comes to changing demands, which is a feature required in our times.  

CLOUD DATA WAREHOUSE 

  • The problems with cloud data warehouse services are data integration, provider lock-in, security, possibility, and latency.  
  • Ingesting data into a cloud warehouse isn’t easy as it requires writing ETL code, which is time-consuming and involves using expensive resources.  
  • Changing to a different cloud data warehouse provider is harder as it involves technical challenges and contractual issues.   
  • Within a cloud data warehouse takes a lot of time to store and retrieve data. Therefore, data latency is rather a challenge for cloud service providers.  


Conclusion 

As reported by Forrester Ware Cloud data warehouse, most organizations are deploying cloud services, and their usage is on the rise, as it helps them 70% to 80% in savings. iSmile Technologies ensure to offer cloud services with 100% success rates and security to all their clients. 

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