Modern Data Warehouse

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With the ever-growing volume, variety, and velocity of data, traditional data warehouses have faced numerous challenges, necessitating the evolution of a modern data warehouse.

What precisely is a modern data warehouse, then?

The best methods of conventional data warehousing are combined with contemporary tools and methods to create a modern data warehouse. Along with data management and storage, it also includes strong tools and procedures for data integration, transformation, and analysis. This holistic approach enables businesses to extract valuable insights from their data more efficiently and effectively.

Data warehouses serve as the foundation for data exploration and analysis, providing a reliable and consolidated source of information that can be accessed by various business functions, including marketing, sales, finance, and operations.

However, traditional data warehouses have encountered several challenges including scalability, high costs, complex data integration process, etc that have hindered their ability to keep up with the evolving data landscape. As a result, businesses have recognized the need for modernization to overcome these obstacles and unleash the true potential of their data.

Understanding the Modern Data Warehouse

Data warehouses serve as repositories for storing and organizing data, allowing businesses to make informed decisions based on historical trends and patterns. The modern data warehouse takes this concept to new heights by embracing cloud-based technologies.

The modern data warehouse is cloud-based in nature. By harnessing the power of cloud computing, organizations can leverage scalable and elastic resources, reducing the burden of infrastructure management. These offer unparalleled performance optimization, cost-effectiveness, and support for parallel query execution, enabling businesses to process and analyze large volumes of data quickly.

Furthermore, the modern data warehouse is not limited to a single program or technology stack. It embraces the concept of polyglot persistence, where multiple programs and storage technologies coexist harmoniously. This best-fit engineering approach allows organizations to leverage the strengths of various data storage solutions, such as data lakes and NoSQL databases, to efficiently handle diverse data types and accommodate evolving business requirements.

Moreover, the modern data warehouse goes beyond just analytics and also facilitates reporting. Reporting involves transforming the results of data analytics into human-readable reports, presenting information in a concise and understandable manner. These reports serve as a valuable tool for decision-makers, allowing them to visualize and interpret complex data effortlessly.

Modern Data Warehouse Architecture

Unlike traditional data warehouses, modern data warehouses boast a more flexible architecture. Traditional warehouses typically follow the Extract, Transform, Load (ETL) process and utilize a star schema for data modeling. However, modern data warehouses embrace a wider range of architectural approaches, including hybrid architectures, Massively Parallel Processing (MPP) architectures, and Lambda architectures.

When it comes to processing large volumes of data, modern data warehouses often employ the Extract, Load, Transform (ELT) approach. In contrast to the ETL process, ELT enables organizations to load raw data directly into the warehouse without prior transformation. This approach proves particularly beneficial for handling vast datasets and ensures more efficient data processing.

MPP architectures play a vital role in enabling scalable distributed computing within modern data warehouses. With MPP, data is distributed across multiple processing nodes, allowing for parallel processing of queries and computations. This shared-nothing approach, where each node operates independently, significantly enhances performance and accelerates data processing.

Modern data warehouses also address the challenge of integrating multi-structured data effectively. By employing federated query access, these warehouses enable seamless integration of diverse data sources and formats. 

Another architectural paradigm commonly employed in modern data warehouses is the Lambda architecture. This architecture comprises three layers: the speed layer, the batch layer, and the serving layer. The speed layer handles real-time data processing and delivers immediate insights. The batch layer deals with the storage and processing of large volumes of historical data. Finally, the serving layer provides a unified view of the data, allowing users to access and analyze it efficiently.

Furthermore, modern data warehouse architectures often embrace hybrid models, which combine on-premises data structures with cloud services. This integration allows organizations to leverage existing infrastructure investments while harnessing the scalability and advanced analytics capabilities offered by the cloud. The hybrid architecture empowers businesses to optimize their data management processes, seamlessly extend their data warehouse capabilities, and adapt to evolving business needs.

Data Analysis in a Modern Data Warehouse

A modern data warehouse uses SQL (Structured Query Language) which offers a standardized way to interact with structured data and allows users to build efficient queries for data retrieval, manipulation, and aggregation. With SQL, analysts and data scientists can unleash the power of relational databases, leveraging its rich set of functions and capabilities to perform complex data analysis tasks.

In addition to SQL databases, contemporary data warehouses also support NoSQL databases. This adaptability allows businesses to store and analyse data in formats like JSON, XML, or even unstructured text, expanding the number of data analysis options. By using NoSQL databases, businesses can benefit from the potential of various data sources and discover new information.

In addition to SQL and NoSQL, machine learning plays a pivotal role in data analysis within a modern data warehouse. Businesses can automate and optimize their data analysis processes using machine learning techniques, which enables them to quickly and widely extract insightful data.

A modern data warehouse provides the flexibility to ingest, store, and analyze these various data types, allowing organizations to gain a holistic view of their data assets and extract insights from diverse sources. The different types of data include:

Structured data refers to well-organized data with a predefined schema, such as data stored in traditional relational databases. 

Semi-structured data, on the other hand, lacks a rigid schema and may include data like log files, social media posts, or sensor data. 

Unstructured data encompasses information in formats like emails, documents, images, or videos.

Traditional vs. Modern Data Warehouses

First and foremost, one of the most noticeable disparities between traditional and modern data warehouses lies in their location. Traditional data warehouses are typically on-site, meaning they reside within the organization's physical infrastructure. On the other hand, modern data warehouses leverage the power of cloud infrastructure.

Another crucial aspect that sets these two approaches apart is their purpose. Traditional data warehouses are purpose-built for specific workloads. They excel in handling well-defined tasks like business intelligence (BI) or online analytical processing (OLAP). In contrast, modern data warehouses are designed to tackle high volumes of diverse data. They are built to handle the four Vs of big data: Volume, Variety, Velocity, and Veracity. This flexibility enables organizations to process and analyze data from various sources, gaining deeper insights and unlocking new opportunities.

Speaking of data sources, traditional data warehouses typically rely on conventional sources such as structured databases and legacy systems. In contrast, modern data warehouses can tap into a wide range of sources, including social media platforms, sensor data, blogs, audio files, and video streams.

When it comes to architecture, traditional data warehouses often utilize the star schema, a widely adopted approach for organizing data. In this schema, a central fact table is surrounded by multiple dimension tables, creating a star-like structure. In contrast, modern data warehouses offer a plethora of architecture options, allowing organizations to choose the most suitable model for their specific needs. Whether it's a star schema, snowflake schema, or even a data lake architecture, modern data warehouses provide the flexibility to accommodate different data models and analytical requirements.

Cost considerations also play a significant role in the comparison between traditional and modern data warehouses. Traditional on-premises data warehouses often come with substantial upfront costs for hardware, software licenses, and maintenance. In contrast, modern data warehouses hosted in the cloud offer a more cost-effective alternative. 

Benefits of a Modern Data Warehouse 

  • Lower upfront costs compared to on-premises data warehouses: With modern cloud-based data warehousing options, businesses can avoid the need for expensive hardware and infrastructure, ultimately saving valuable resources.

  • Less maintenance and downtime: Traditional data warehouses often require substantial maintenance and downtime for routine tasks like software updates, hardware upgrades, and system optimizations. However, modern data warehouses, particularly those hosted in the cloud, alleviate these concerns by handling maintenance and updates behind the scenes, allowing organizations to focus on their core operations without interruptions.

  • Faster processing speeds, especially with ELT: Modern data warehouses leverage Extract, Load, and Transform (ELT) processes to accelerate data processing. By moving data extraction and loading steps before transformation, organizations can take advantage of faster processing speeds.

  • Easier scalability to handle larger workloads and more data: As businesses grow and data volumes increase, scalability becomes crucial. Modern data warehouses are designed to scale effortlessly, allowing organizations to handle larger workloads and accommodate the ever-growing amount of data. By seamlessly adjusting resources to match demand, a modern data warehouse ensures optimal performance even as data requirements expand.

  • Data lakes storing raw data in its native format: Modern data warehouses can integrate with data lakes, which serve as repositories for storing raw, unprocessed data in its native format. This integration enables businesses to combine the power of structured data warehouses with the flexibility of unstructured data lakes, providing a comprehensive and holistic view of their data assets.

  • Quicker information assortment and analysis across organizations: With a modern data warehouse, organizations can consolidate data from various sources into a central repository, facilitating faster data assortment and analysis. By having a unified view of their data, businesses can derive meaningful insights across different departments and teams, fostering better collaboration, and driving data-driven decision-making throughout the organization.

  • Sharing and analysis of IoT streaming data: A modern data warehouse excels in efficiently handling and analyzing this data, allowing businesses to harness valuable insights from IoT devices. By integrating IoT data streams with other data sources, organizations can gain a comprehensive understanding of their operations and make proactive, data-driven decisions.

  • Rapid integration of data with improved efficiency and reduced time and cost: Modern data warehouses offer streamlined data integration capabilities, enabling organizations to bring in data from various sources quickly and efficiently. This streamlined integration process reduces both the time and cost associated with data ingestion, ensuring that businesses can leverage their data assets without unnecessary delays or expenses.

  • Preventive and predictive analysis are made possible by modern data warehouses, which give businesses the freedom to experiment with cutting-edge analytical methods and novel data models. Businesses can perform preventive and predictive analysis by identifying trends, patterns, and anomalies thanks to the ability to store and analyse enormous amounts of data.

  • Accommodation of extensive datasets as data continues to grow: As the volume of data generated by organizations continues to grow exponentially, a modern data warehouse can accommodate extensive datasets. Whether it's terabytes or petabytes of data, modern data warehouses provide the necessary scalability and storage capacity to handle large-scale data requirements, ensuring that businesses can adapt to the data growth without compromising performance or insights.

  • Cost advantages of open-source software and commodity hardware: Modern data warehouses leverage open-source software and commodity hardware, which can significantly reduce costs compared to proprietary solutions. By embracing open-source technologies and commodity hardware, organizations can achieve cost efficiencies while still benefiting from robust and scalable data warehousing capabilities.

Migrating to a Modern Data Warehouse

Migrating to a modern data warehouse is a crucial step for businesses in today's digital landscape. Here are the key steps to consider when undertaking this migration:

  1. Defining data goals and identifying pain points: Begin by clearly defining your organization's data goals and understanding the pain points in your current data environment. This will help you determine the specific objectives and requirements for your modern data warehouse.

  1. Understanding business needs and aligning with data goals: It's essential to align your data goals with your organization's broader business needs. This alignment ensures that your modern data warehouse solution addresses critical business challenges and supports decision-making processes effectively.

  1. Assessing accessibility and security: Evaluate the accessibility and security requirements of your data. Modern data warehouses offer enhanced accessibility, enabling users to retrieve and analyze data quickly. Simultaneously, robust security measures ensure the protection of sensitive information.

  1. Selecting the right architecture based on the data estate: Carefully consider the architecture that suits your organization's data estate. Modern data warehouses provide various architectural options, such as cloud-based, on-premises, or hybrid solutions. Choose the architecture that aligns with your data infrastructure and long-term scalability goals.

  1. Using data integration tools for centralized and unified data: Effective data integration is a critical aspect of modern data warehousing. Leveraging data integration tools allows you to centralize and unify data from diverse sources, making it easier to analyze and derive valuable insights.

  1. Staying flexible and adapting to changing needs and technologies: Modern data warehouses should be flexible enough to adapt to evolving business needs and emerging technologies. This flexibility ensures that your data warehouse remains relevant and effective in the face of changing requirements.

  1. Growing an existing data warehouse environment: Strategies like data modeling, partitioning, and clustering can help you scale and optimize your existing data warehouse environment. These techniques ensure efficient data storage, retrieval, and analysis as your organization's data volume increases.

  1. Augmenting the data warehouse with complementary solutions: Consider augmenting your modern data warehouse with complementary storage and analytical solutions. For example, incorporating a data lake alongside a relational data warehouse or data mart structure allows you to handle diverse subject areas and data sources efficiently.

  1. Utilizing cloud and hybrid solutions and employing data virtualization: Take advantage of cloud and hybrid solutions for your modern data warehouse. Additionally, employing data virtualization enables seamless data access and integration across various platforms.

Features of Modern Data Warehouse

Modern data warehouses offer a range of features that make them indispensable for businesses. Here are some key features to consider:

  • Handling a variety of subject areas and data sources with large volume capacity: Modern data warehouses can handle diverse subject areas and data sources, accommodating large volumes of data. This capability enables organizations to consolidate and analyze information from multiple channels effectively.

  • Including a data lake in addition to a relational data warehouse/data mart structure: Integrating a data lake alongside a relational data warehouse or data mart structure provides the flexibility to store raw and unstructured data. This approach allows for exploratory analysis and data discovery while maintaining structured data for traditional reporting and analysis.

  • Balancing performance and scalability across multi-platform architecture: Modern data warehouses strive to achieve a balance between performance and scalability. They leverage multi-platform architecture to optimize query performance while accommodating data growth and increasing user demands.

  • Supporting data virtualization, all types of users, and flexible deployment: Data virtualization is a critical feature that enables seamless access to data from multiple sources, regardless of location or format. Modern data warehouses support various user types, including business analysts, data scientists, and executives, providing them with self-service capabilities. Additionally, these warehouses offer flexible deployment options to align with organizational requirements.

  • Including governance, self-service solutions, real-time analysis, and advanced analytics: Modern data warehouses incorporate robust governance mechanisms to ensure data quality, integrity, and compliance. They also provide self-service solutions, empowering users to explore and analyze data independently. Real-time analysis capabilities enable organizations to derive insights from rapidly changing data. 

  • Defining compression formats and evaluating data storage options: Modern data warehouses allow the definition of compression formats, optimizing storage efficiency and reducing costs. They also offer various data storage options, including columnar storage, in-memory databases, and distributed file systems, to accommodate different workload requirements.

  • Considering multi-tenancy support for the BI environment: Multi-tenancy support is crucial for organizations that provide Business Intelligence (BI) services to multiple clients. Modern data warehouses offer this capability, allowing secure separation of data and resources among different user groups.

  • Reviewing and optimizing the database schema: Modern data warehouses provide tools and techniques to streamline the schema design, ensuring efficient data retrieval and analysis.

  • Ensuring end-to-end metadata management for successful data warehousing projects: Modern data warehouses provide comprehensive metadata management capabilities, ensuring accurate documentation and understanding of data lineage, data transformations, and data definitions.


In conclusion, migrating to a modern data warehouse is vital for businesses to thrive in today's digital age. At Sprinkle Data, we understand the challenges and opportunities presented by big data and advanced analytics.

Our data platform offers a comprehensive solution to empower the modern enterprise. With Sprinkle Data, you can easily manage both relational and non-relational data, regardless of the volume, while ensuring high performance. Furthermore, you can gain valuable insights from business intelligence and advanced analytics, leveraging the full potential of your data, wherever it resides.

We are here to support your journey towards a modern data warehouse. 

Take the first step towards transforming your data infrastructure with Sprinkle Data. Sign up for a 14-day free trial, and let us help you unlock the true potential of your data.

Written by
Pranay Janbandhu


Modern Data Warehouse