The need to interpret the vast data is growing unprecedently in the world. With digitization taking over industries, more and more organizations are generating digital data like never before. The growing data is not only a huge asset but also presenting immense opportunities for the industries.
The opportunities can be in the form of competitive advantage, superior customer experience, operational efficiency, and innovation in the very product of the organization. As enticing as it sounds, the journey to reaching this point where all of the data makes sense is a little tiresome.
To derive interpretations and insights from the data means going a rigorous process of collecting, transforming, loading, and finally applying data analytics on top of it. As challenging as it sounds, it is difficult to make it possible in reality without any resources put to use.
This is where most of the businesses fail. Small and medium businesses find it extremely challenging to invest in anything because of their obvious budget constraints. On the other hand, large businesses are the first ones to leverage technology to make the best use of data. This not only creates a difference in the market but also makes it more tilted towards giant enterprises and organizations.
However, despite all this, small and medium enterprises manage to contribute to a great extent to the economy. The question is how do they do that?
Bidding Goodbye to Traditional Processes
When it comes to managing data, most businesses were using the same traditional on-site infrastructure a few years back. While this worked a few years ago due to a variety of reasons, the winds of change have taken over. Enterprises looking for smarter solutions, because their data was increasing and so were the data management costs.
This led to huge turbulence in the traditional data management system, which was mainly on-site. Since the on-site data warehouse was not only difficult to manage but also had more than a few issues, enterprises found their solution in the cloud.
Ad as we know today, a cloud data warehouse is excessively popular among enterprises and helping them make sense of all the data. They help businesses streamline their operations and gain visibility to all departments running within. Moreover, cloud data warehouses help enterprises serve their customers and create further opportunities in the market.
As businesses come up with new plans and products, data warehouses begin to play even a more important role in the process. They are becoming the new norm. Gone are the days when an enterprise had to purchase hardware, create server rooms along with hire, train, and maintain a dedicated team of staff to run it. Today, the tables have turned and everything is being managed on the cloud.
But, to precisely understand why cloud data warehouses outperform traditional systems we need to dive down into their differences.
Cloud Data Warehouses Becoming the New Norm
Today’s businesses are moving faster than ever. In other words, they are racing out too far more customers and accomplishing a lot more things. Data has become a part of their core processes. For example, banks are processing the credit and debit cards of customers at every second. Similarly, insurance companies are maintaining their customer profiles and updating them frequently with policy-related information and changes.
On the other hand, we have brick and mortar stores, process in-store purchases while the online stores process the purchases made digitally. The idea behind this is that all these stores process information that is transactional in nature. They have to be written and updated frequently. Right now businesses have an online transaction processing database to take care of these.
This is just one side of the coin. The other side means managing revenue, business operations, customer engagements, and many other things, that are potentially based on the transactional data. Moreover, this data is only growing and businesses need a solution for their optimization.
The problem is, however, that online transaction processing systems are designed for managing and processing one small transaction at a time. When it comes to tons of data they fail to deliver the required results.
This is where the solution of data warehouses emerges. They already can perform processing on large amounts of data. As a link to the traditional transactional database, they will hold a copy of it and store it safely in the cloud. Moreover, the best part of using a cloud data warehouse is that they only charge you for the services you use.
For example, based on your company data, you will require a certain amount of space in the cloud. Similarly, for the number of computations, you have to perform you will need a separate computational space. In the cloud data warehousing system, these are charged only on the basis of your usage, which makes scaling easier than ever.
Moreover, data architectures must be elastically designed for cloud-based systems. And this is because enterprises need to ensure the integrity and consistency of data across all platforms. While doing this manually seems like a tough challenge, companies often turn to the enterprises that help in accomplishing a lot at low investments.
As we move ahead into the future, cloud data warehouses will be the only data storage and processing units remaining. After all, companies want to reduce their costs as well as enhance their productivities at the same time. This becomes cumbersome with the existing system and can be only taken up with a flexible and outperforming cloud platform.
James has more than 15 years’ experience in customer relationship management, business development and digital marketing across various fields like, pharma, banking, real estate, entertainment, telecommunications, eCommerce, electronics, etc… As a Sr. business development executive at NexSoftsys, James gives the best solutions to develop business in the global market using the latest technology.