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Last updated on 2024年7月6日

Why should you choose a cloud data warehouse over an on-premise solution?

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Data warehousing is the process of collecting, integrating, and analyzing data from various sources to support business intelligence and analytics. Traditionally, data warehouses were built and maintained on-premise, meaning on the organization's own servers and hardware. However, with the emergence of cloud computing, more and more businesses are opting for cloud data warehouses, which are hosted and managed by a third-party provider. Why should you choose a cloud data warehouse over an on-premise solution? Here are some of the main benefits and challenges of each option.

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Michael Abildskov Poulsen
Sumit Panda

Senior Data Architect at Bizmetric
Krittika Mittra

Lead at HTC Global Services with expertise in Power BI | Data Modeling & Data Warehouse

1 Scalability and flexibility

One of the biggest advantages of cloud data warehouses is their scalability and flexibility. Unlike on-premise data warehouses, which require upfront investment in hardware and software, cloud data warehouses allow you to pay as you go and adjust your storage and computing resources according to your needs. You can also access your data from anywhere and anytime, as long as you have an internet connection. This means you can easily handle data growth, seasonal spikes, and changing business requirements without worrying about capacity, performance, or availability.

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Michael Abildskov Poulsen
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Choosing a cloud data warehouse over an on-premise solution offers scalability, enabling easy adjustment of resources to meet data growth. It ensures high availability and reliability, with data backed up automatically across multiple locations. Cloud solutions typically offer cost efficiency, as you pay for only what you use, avoiding hefty upfront hardware costs and maintenance. They also facilitate easier collaboration and data sharing, providing access from anywhere. Additionally, cloud providers continuously update and enhance security measures, ensuring data protection against evolving threats.

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Albert R.

Client Technical Specialist, Chief Database Architect, Northeast US @ Mphasis || Health AI @ DocNote.ai || Generative AI Search Evaluating LLM's @ MetaRAG.ai
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If your on-premise data warehouse is waiting on the network, than the cloud a perfect choice. Other than that, they both do the same thing. My favorite with any cloud is their compute engine where we can bring our own binaries and light it up.

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Nicholas Simon Auckland Eden

ERP Manager ASA (Associate member CPA), Project Manager
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Putting your applictions and data in the cloud makes perfect sense. You can focus on what is really important to your organisation and your information is protected by the cloud in terms of security, scalability and legitimate access. Your subscription can account for any growth in services or voluem of data and amount of transactions. Your disaster recovery, availability and around the clock access are all protected by your service level agreement with your cloud provider. The question is why would you use on-premises?

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2 Cost and maintenance

Another factor to consider is the cost and maintenance of your data warehouse. On-premise data warehouses can be expensive to set up and operate, as you have to purchase, install, and maintain your own infrastructure, software, and security. You also have to deal with licensing fees, upgrades, patches, backups, and disaster recovery. Cloud data warehouses, on the other hand, can reduce your capital and operational expenses, as you only pay for what you use and rely on the provider to take care of the technical aspects. You can also benefit from the economies of scale and the innovation of the cloud provider, who can offer you lower prices and better features.

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3 Security and compliance

A common concern about cloud data warehouses is their security and compliance. Some organizations may be reluctant to entrust their sensitive data to a third-party provider, especially if they have to comply with strict regulations or industry standards. However, cloud data warehouses can also offer high levels of security and compliance, as they use encryption, authentication, authorization, auditing, and monitoring to protect your data. You can also choose the location and type of your cloud data warehouse, depending on your data sovereignty and governance needs. Moreover, cloud providers are constantly updating their security and compliance measures to meet the latest standards and best practices.

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Sumit Panda

Senior Data Architect at Bizmetric
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Majority of the cloud solutions are just stateless containers, but not dedicated VMs. Once the activities are performed then the containers are returned and nothing remains on them. Even then the containers are formatted/memory wipes so no residual mining would be possible. That helps with security. It's the orgs that need to enforce the security and that's where the human error happens. A lot of.orgs do not exactly understand how you ensure security. Something DevSecOps helps as a practice.

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4 Integration and migration

A final aspect to consider is the integration and migration of your data warehouse. On-premise data warehouses can be easier to integrate with your existing systems and applications, as they use the same or compatible technologies and formats. However, they can also be harder to migrate, as you have to deal with data extraction, transformation, loading, and validation. Cloud data warehouses can be more challenging to integrate with your on-premise systems and applications, as they may require different tools, protocols, and formats. However, they can also be easier to migrate, as you can leverage the cloud provider's services, tools, and expertise to streamline the process.

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5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Krittika Mittra

Lead at HTC Global Services with expertise in Power BI | Data Modeling & Data Warehouse
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Choosing a cloud data warehouse over an on-premise solution offers numerous benefits, including scalability, cost efficiency, reduced maintenance, enhanced accessibility, and robust performance. It aligns well with modern business needs, providing the flexibility, reliability, and security required to manage and analyze large volumes of data effectively. This makes it an attractive option for organizations looking to stay agile and competitive in a rapidly evolving technological landscape.

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Why should you choose a cloud data warehouse over an on-premise solution?

1

2

3

4

5

1 Scalability and flexibility

2 Cost and maintenance

3 Security and compliance

4 Integration and migration

5 Here’s what else to consider

Data Warehousing

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Why should you choose a cloud data warehouse over an on-premise solution?

1

2

3

4

5

1 Scalability and flexibility

2 Cost and maintenance

3 Security and compliance

4 Integration and migration

5 Here’s what else to consider

Data Warehousing

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