Data warehouse is a relational database formed to analyze and perform query processing. Data warehousing is generally used by enterprises as the data stored by these warehouses is of large size. Warehouse stores data retrieved from historical transactions; however, it also contains data from various other sources. Data warehousing contains additional tools compared to a relational database. Extraction, transformation and loading (ETL) tools are available for processing in data warehousing.
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Data generated by organizations worldwide is increasing constantly, which is the major driving force behind the growth of data warehousing market. Telecommunications, BFSI industries need to store billions of records on a daily basis. Growth of IT and related services worldwide is also contributing to increase in data generation. Enterprises all over the world have understood the importance of BI which has resulted in processing of historical data on regular basis. Also, analytical tools are required for processing data. Data warehousing offers tools for such processing.
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Proliferation of cloud technology has been helping data warehousing market to grow during recent years. Cloud technology provides an infrastructure designed for data warehousing, enhancing its potential further. Budget restraints and time required to build in-house software are the key factors responsible for adoption of cloud-based data warehousing solutions. Overhead costs are reduced with the usage of cloud technology, as space and cooling expenses are non-existent.
Concerns regarding security could hinder the progress of data warehousing market. Important historical data is stored in data warehousing, which is used to make future business strategies. This makes the stored data highly confidential and therefore it must be protected and handled with precaution.