1. On premise and cloud data warehouses
Hello again! This video will discuss the options for implementing a data warehouse on-premise, located within the organization's physical confines, or in the cloud.
2. On premise
When implementing a data warehouse on-premise, organizations purchase the servers and computer hardware and install all the necessary software at some physical location within the organization. There are several benefits for doing this.
3. On premise - pros and cons
First, it offers an organization maximum control and customizability over all aspects of the warehouse's implementation and ongoing maintenance.
With complete control, organizations could implement strict governance of the data and who has access to it and implement any regulatory compliance controls an organization needs.
Additionally, since the warehouse is likely on the organization's local network, they can leverage their local network speeds for data transfers with other organizational systems and avoid some bandwidth challenges of the cloud.
Finally, they can tune the warehouse for optimal performance for the organization's workloads.
However, on-premise requires purchasing the equipment upfront and maintaining the staff and personnel to maintain the system.
This includes keeping up with patches and security updates of the system. Due to these challenges, many organizations have looked to cloud providers for support in implementing their data warehouses.
4. In the cloud
Over the last few years, there has been a rapid rise in the use of cloud services.
Some cloud data warehouse providers include Amazon's Redshift, Microsoft's Azure Synapse, Snowflake, and Google's Big Query.
Gartner, the consulting firm, predicts that by 2026, public cloud spending will exceed 45% of all enterprise IT spending and is forecasted to be greater than $482 billion.
5. In the cloud - pros and cons
Many cloud providers offer a data warehouse as a managed SaaS or software as a service. In this case, the cloud provider takes care of the equipment and infrastructure, ensuring that the equipment stays up and running and the software is secure with the latest patches and upgrades.
This allows organizations to use personnel for other tasks instead of just managing systems.
Additionally, the cloud enables organizations to scale up or down their storage and compute resources as needed, allowing them to store vast amounts of data or use extensive computing resources without the upfront investment.
However, a challenge of using the cloud is less control over tuning the software and infrastructure.
As a result, organizations may be unable to fully optimize the warehouse for their workloads.
Additionally, cloud providers bill based on usage; therefore, if there is a significant spike in the warehouse usage, this might lead to unanticipated high costs for the organization.
6. Hybrid approach
Finally, organizations may implement a warehouse using a hybrid approach where they will operate a data warehouse on the premise and in the cloud.
One reason for doing this is for backup or disaster recovery.
7. Summary
In summary, an organization may operate an on-premise data warehouse if they need complete control over the system for critical workloads or regulatory compliance. However, cloud implementations offer many benefits, in particular, not having to manage the software and infrastructure and the ability to scale as needed.
Although, these benefits come at the price of complete control. A hybrid approach is also a possibility for organizations. They should understand the strengths of each implementation type when deciding what works best for them.
8. Let's practice!
Okay, time for practice.