what is difference between data warehouse and big data?
Big data vs. data warehouse: What is the difference?
Technology vs. architecture
The most apparent difference when comparing data warehouses to big data solutions is that data warehousing is an architecture, while big data is a
technology. These are two very different things in that, as a technology, big data is a means to store and manage large volumes of data.
On the other hand, a data warehouse is a set of software and techniques that facilitate data collection and integration into a centralized database. It also
facilitates visualization, analysis, and tracking of key performance indicators on a dashboard.
Volume of data
Another major difference is that a data warehouse architecture is implemented on a single relational database that acts as the central store. However, big
data solutions are meant to span multiple applications and handle big volumes of data, which in most cases, exceed the capability of any single
application.
Usage os SQL queries
Additionally, a big data ecosystem typically includes a data warehousing service built on top of the solution’s core. These warehousing services include SQL,
NoSQL, and SQL-Like data stores [4]. In contrast, most major organizations relying on data warehouses have gravitated to multiprocessor appliances to
scale data volumes. Despite their effectiveness, these systems are very expensive, so they are out of reach for most small to medium-sized companies.
Structured vs. non-structured data input
In terms of data mining, big data takes all forms of data (unstructured, semi-structured, and structured) as input. On the other hand, data lakes only take
structured data as input. Moreover, data warehouses use SQL queries to fetch data from a relational database, whereas big data doesn’t.
New data input
When new data is added to big data, the changes are stored in files, which are typically represented by tables. In a data warehouse, new data does not
impact the data warehouse directly, making it difficult to gain real-time insights from new data.
Big data vs. data warehouse – final thoughts
Despite their apparent similarities, a closer look into big data and data warehouse technologies reveals that they are completely different in almost all
aspects. The sheer volume of organizational data being generated, coupled with the need to provide real-time analytics and insights based on the data, has
prompted many organizations to opt for big data solutions as opposed to data warehousing.
However, the answer to whether or not big data will replace data warehouses is yet to be seen, as both technologies and architectures are not
interchangeable.
What is Big Data?
Big Data refers to vast and complex datasets generated exceptionally from various sources, including social media, IoT devices, sensors, and more. The
three V's characterise Big Data as:
a) Volume (enormous data quantities)
b) Velocity (rapid data generation and processing)
c) Variety (diverse data types, including structured, semi-structured, and unstructured)
Big Data poses considerable challenges in terms of storage, management, and analysis, and it requires specialised technologies such as distributed
computing frameworks and NoSQL databases to extract valuable insights. Its applications range from real-time analytics and predictive modelling to
improving decision-making processes across various industries.
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What is a Data Warehouse?
A Data Warehouse is a centralised and structured repository for storing, organising, and managing large volumes of historical data collected from diverse
sources within an organisation. It is optimised for query performance, data integrity, and reporting, making it an essential tool for business intelligence and
analytics.
Unlike Big Data, Data Warehouses primarily deal with structured data, arranging it in tables with well-defined schemas. This historical data is a foundation
for generating reports, conducting trend analysis, and making strategic decisions. Data Warehouses often use relational databases or cloud-based solutions,
ensuring data consistency and facilitating valuable insights from historical data extraction.
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Big Data vs Data Warehouse
Big Data and Data Warehouses are two distinct approaches to managing and leveraging data, each with its unique characteristics and applications:
Big Data
Here we have discussed the characteristics of Big Data:
a) Data characteristics: Big Data deals with vast, unstructured, semi-structured, and structured datasets. It encompasses various data types, including text,
images, videos, and more.
b) Data generation: Big Data is generated at an immense speed, often in real-time or near-real-time. It comes from social media, sensors, mobile devices,
and online transactions.
c) Data processing: Big Data technologies like Hadoop and Apache Spark focus on distributed processing. They can handle data in its raw form and are well-
suited for batch and real-time stream processing.
d) Use cases: Big Data excels in applications that require real-time analytics, sentiment analysis, and handling diverse and rapidly generated data. Examples
include fraud detection, recommendation systems, and social media monitoring.
e) Scalability: Big Data systems are highly scalable, allowing organisations to handle massive volumes of data and high-speed data ingestion.
f) Storage: They often use distributed file systems and NoSQL databases to store data efficiently, prioritising storage flexibility.
Data Warehouse
Here we have discussed the characteristics of Data Warehouse:
a) Data characteristics: Data Warehouses primarily deal with structured data, organising it into tables, rows, and columns. They focus on maintaining data
quality and consistency.
b) Data generation: Data Warehouses store historical data collected from various sources within an organisation. This data is typically structured and used
for trend analysis and reporting.
c) Data processing: Data Warehouses perform extensive data transformation and cleansing before storing data. They are optimised for fast query
performance, making them ideal for business intelligence and reporting.
d) Use cases: Data Warehouses are best suited for traditional business intelligence tasks, such as generating reports, conducting ad-hoc queries, and
analysing historical data to make strategic decisions.
e) Scalability: While Data Warehouses can scale vertically to some extent, they may need help handling massive datasets compared to Big Data solutions.
Data Warehouses often use Relational Database Management Systems (RDBMS) and columnar storage to optimise query performance and support
complex querying.
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When should you use Big Data and Data Warehouse?
Here, we will discuss when and how you can use Big Data:
a) Unstructured data and real-time analytics: Choose Big Data when dealing with unstructured or semi-structured data types, such as social media posts,
sensor data, or log files, which require flexibility in data modelling. Big Data excels in real-time or near-real-time analytics, providing insights into rapidly
changing data streams.
b) High data volume and velocity: Opt for Big Data when dealing with massive data volumes that traditional systems struggle to handle. It is well-suited for
high-velocity data ingestion and processing applications, like monitoring online user behaviour or analysing IoT sensor data.
c) Diverse data sources: Big Data is the choice when you need to integrate data from various sources, including sources with varying data formats and
structures.
d) Complex data processing: Consider Big Data for complex data processing tasks, such as machine learning, natural language processing, or sentiment
analysis, which require distributed computing capabilities.
Read further to understand when and how you can use Data Warehouse:
a) Structured historical data analysis: Data Warehouses are the go-to solution for structured and historical trend analysis. They provide a solid foundation
for generating reports, conducting ad-hoc queries, and making strategic decisions based on well-organised historical data.
b) Business intelligence and reporting: If your primary goal is business intelligence, dashboards, and regular reporting, Data Warehouses are the ideal
choice due to their optimised query performance and support for complex querying.
c) Data quality and consistency: When data quality and consistency are paramount, Data Warehouses ensure that data is thoroughly cleansed
and maintained, minimising errors and inconsistencies in analytics.
d) Traditional data integration: If your data sources are predominantly structured and you need a unified, reliable source of truth, Data Warehouses are
the conventional solution for data integration and centralisation.
Conclusion
The debate between Big Data vs Data Warehouses continues, as both are crucial for managing data. Big Data converts real-time unstructured data into
useful information, while Data Warehouses organise structured data for strategic decisions. Your decision between Big Data and Data Warehouses hinges
on the nature of your data and your business objectives.
Data warehouse and big data are two different approaches to managing and analyzing large volumes of data. While both involve storing and processing
data, they differ in terms of the type of data they handle, the tools and technologies used, and the overall purpose of the analysis.
**Data Warehouse:**
A data warehouse is a large, centralized repository of integrated data from one or more disparate sources. It is designed to support business intelligence
(BI) activities, such as reporting, analysis, and data mining. The data in a data warehouse is typically structured, cleaned, and transformed to make it easier
to analyze.
For example, a retail company might use a data warehouse to store data from its sales, marketing, and customer service departments. The data warehouse
would integrate and structure the data so that it can be easily analyzed to identify trends, patterns, and insights that can help the company make better
business decisions.
**Big Data:**
Big data, on the other hand, refers to extremely large and complex datasets that cannot be easily managed or analyzed using traditional data processing
tools and techniques. Big data is often characterized by the "3 Vs": volume, velocity, and variety. It includes structured, semi-structured, and unstructured
data from a wide range of sources, such as social media, sensors, and log files.
For example, a social media company might use big data technologies to analyze the vast amounts of data generated by its users, including text, images,
and videos. The company could use machine learning algorithms to identify patterns and trends in the data, such as user preferences, sentiment, and
behavior.
**Differences:**
| Data Warehouse | Big Data |
| --- | --- |
| A large, centralized repository of integrated data from one or more disparate sources. | Extremely large and complex datasets that cannot be easily
managed or analyzed using traditional data processing tools and techniques. |
| Designed to support business intelligence (BI) activities, such as reporting, analysis, and data mining. | Used to extract insights and value from large and
complex datasets that cannot be easily analyzed using traditional methods. |
| Data is typically structured, cleaned, and transformed to make it easier to analyze. | Includes structured, semi-structured, and unstructured data from a
wide range of sources. |
| Uses traditional data processing tools and technologies, such as SQL and OLAP. | Uses new and emerging technologies, such as Hadoop, Spark, and NoSQL
databases. |
**Advantages:**
*Data Warehouse:*
1. Provides a single source of truth for business data.
2. Enables consistent and accurate reporting and analysis.
3. Improves data quality and integrity.
*Big Data:*
1. Allows for the analysis of large and complex datasets that cannot be easily analyzed using traditional methods.
2. Enables the discovery of new insights and patterns in the data.
3. Supports real-time and predictive analytics.
**Disadvantages:**
*Data Warehouse:*
1. Can be expensive and time-consuming to build and maintain.
2. May not be able to handle large and complex datasets.
3. Can become outdated if not regularly updated.
*Big Data:*
1. Requires specialized skills and technologies to manage and analyze.
2. Can be difficult to ensure data quality and security.
3. May require significant investment in infrastructure and resources.
**Limitations:**
*Data Warehouse:*
1. Limited to structured data from predefined sources.
2. Not designed to handle real-time data processing.
3. Limited scalability and flexibility.
*Big Data:*
1. Requires significant processing power and storage capacity.
2. May not be suitable for all types of analysis.
3. Limited data governance and management capabilities.
As Tom Davenport, a leading authority on analytics and big data, once said, "Big data is not about the data, it's about what you do with it." Both data
warehouses and big data provide businesses with powerful tools for managing and analyzing data, but the choice between the two depends on the specific
needs and goals of the organization. Data warehouses are best suited for structured data and traditional BI activities, while big data is better suited for large
and complex datasets that require advanced analytics and real-time processing.
Sure! Let's break down the difference between a data warehouse and big data, along with their advantages, disadvantages, and limitations:
**Data Warehouse:**
**Description:** A data warehouse is a centralized repository that stores structured data from multiple sources, organized in a way that facilitates analysis
and reporting. It is designed for querying and analysis to support decision-making processes within an organization.
**Example:** A retail company uses a data warehouse to consolidate sales data from its stores, online platforms, and customer loyalty programs. This
allows them to analyze sales trends, customer behavior, and inventory levels to make informed business decisions.
**Advantages:**
- Provides a unified view of data from various sources, enabling comprehensive analysis.
- Optimized for complex queries and reporting, leading to faster insights.
- Supports data consistency, integrity, and security through structured schemas and controls.
**Disadvantages:**
- Limited scalability for handling large volumes of unstructured or semi-structured data.
- May require significant upfront investment in infrastructure, tools, and expertise.
- Data updates and refreshes can be time-consuming and resource-intensive.
**Limitations:**
- Primarily suited for structured data types, limiting its ability to handle unstructured or real-time data effectively.
- May struggle to accommodate rapid changes in data sources or business requirements.
- Requires careful design and maintenance to ensure data quality and performance.
**Big Data:**
**Description:** Big data refers to large volumes of structured, semi-structured, and unstructured data that cannot be easily managed or analyzed using
traditional database systems. It encompasses a wide variety of data sources, including social media, sensor data, and machine-generated data.
**Example:** A social media platform collects and analyzes vast amounts of user-generated content, including text, images, and videos, to extract insights
on user behavior, preferences, and trends.
**Advantages:**
- Enables analysis of diverse data types, including structured, semi-structured, and unstructured data.
- Supports real-time processing and analysis of streaming data for immediate insights.
- Offers scalability to handle massive data volumes and accommodate future growth.
**Disadvantages:**
- Complexity in data integration, storage, and processing, requiring specialized tools and expertise.
- Data privacy and security concerns due to the sensitive nature of the data being collected and analyzed.
- Risk of information overload and analysis paralysis without clear objectives and methodologies.
**Limitations:**
- Challenges in ensuring data quality, consistency, and reliability across diverse data sources.
- Requires robust infrastructure and computational resources to handle the volume, velocity, and variety of big data.
- Ethical and regulatory considerations regarding data usage, privacy, and compliance.
**Differences:**
| Data Warehouse | Big Data |
|-----------------------------------------|------------------------------------------|
| Stores structured data | Stores structured, semi-structured, and unstructured data |
| Designed for analysis and reporting | Used for analysis, real-time processing, and machine learning |
| Typically centralized | Often distributed across multiple systems and locations |
| Suited for structured query and reporting | Supports complex analytics, including predictive modeling and machine learning |
By understanding the differences, advantages, disadvantages, and limitations of data warehouses and big data, MBA students and business professionals
can effectively leverage these technologies to extract insights and drive decision-making processes within their organizations.
