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What is a Data Warehouse?
A Data Warehouse is a centralized system designed to store, integrate, and analyze large volumes of structured data from multiple sources to support business intelligence and reporting.
Definition
Data Warehouse is a large, centralized repository that consolidates historical and current structured data from various systems, optimized for querying, analytics, and decision‑making.
Key Takeaways
- Central repository for structured, integrated data.
- Optimized for reporting, analytics, and business intelligence.
- Uses schema‑on‑write with predefined structures.
- Feeds dashboards, KPIs, forecasting, and executive reporting.
Understanding Data Warehouses
Data Warehouses are designed for analytical workloads rather than operational use. They gather data from ERP systems, CRMs, applications, and external sources through ETL/ELT pipelines.
Core characteristics:
- Integrated: Combines data from multiple systems.
- Subject‑Oriented: Organized by domains (sales, finance, HR).
- Non‑Volatile: Historical data is preserved.
- Time‑Variant: Tracks changes over long periods.
Common technologies include Snowflake, Redshift, BigQuery, Azure Synapse, and Oracle.
Importance in Business or Economics
- Provides a single source of truth for analytics.
- Enables accurate reporting and performance measurement.
- Supports forecasting, budgeting, and strategic decisions.
- Reduces reliance on operational databases for analytics.
Types or Variations
- Enterprise Data Warehouse (EDW) – Full organizational repository.
- Data Mart–Driven Warehouse – Bottom‑up approach.
- Cloud Data Warehouse – Fully managed, scalable systems.
- Virtual Warehouse – Logical layer without physical storage.
Related Terms
- Data Lake
- Data Lakehouse
- ETL / ELT
- Business Intelligence (BI)
Sources and Further Reading
- Kimball: Dimensional Modeling
- Inmon: Corporate Information Factory
- Gartner: Cloud Data Warehouse Rankings
Quick Reference
- Central analytical repository
- Structured, integrated, historical data
- Powers BI and advanced analytics
Frequently Asked Questions (FAQs)
Is a Data Warehouse the same as a Data Lake?
No, warehouses store structured, curated data; lakes store raw data.
Do all organizations need a data warehouse?
Any organization performing analytics benefits from one.
Are cloud warehouses better?
They offer scalability, lower maintenance, and cost efficiency.
