How Is Data Warehouse Different From Database?

Various industries require huge amount of data to store and process information and carry out various business practices on the basis of any gathered data. The data stored is used in predicting future trends, consumer behaviour and other important aspects of the industry.

Industries need huge systems to store this data and use it whenever the need arises. The traditional methodologies fail to handle the data that is collected from various sources. Industries need a single data platform to store the data that can be used for business analytics and deliver important insights. The use of advanced database and data warehouse has been on a boom since the introduction of various advanced technologies that are used for accumulating a chunk of data for the industries.

Both platforms, namely database and data warehouse fulfil the requirement of storing the vast amount of data in a single unit but they work by processing differently and involving diverse operations.

A data warehouse refers to a system that accumulates data from different sources that is used for reporting and analysis. It can be said as an integral component of business intelligence. This system is used to store historical and current data in a single place. It is a consolidated form of a logical or physical data.

On the other hand, a database refers to an organised form of data collection, that involves the use of rows, columns and tables for storing and easily accessing diverse information. A database is developed using various design techniques. Apart from storing data, these databases are also used to process day-to-day transactions in an organization. 

These platforms are also optimized for performing a range of functions.

A data warehouse is optimized to handle queries on historical data sets that are fewer in number. The tables are transformed to accumulate the summarized data and enable faster query response. It uses Online Analytical Processing to enable a faster query response. It enables the industries to extract and analyze data and obtain insights on important aspects of the business.

A database is optimized to enhance the efficiency of the data that is updated or deleted, and help the industries accessing data efficiently. A database uses Online Transactional Processing for performing various specific tasks such as inserting, replacing or updating various online transactions.

How is data organized? 

These platforms use variant data structure for performing various tasks and delivering efficient results. Data structure refers to a format of storing data that includes files, records, arrays, tables, etc. to organize the data received.

A data warehouse does not use such a specialized format of a data structure as it does not need to organize quick transactions. It uses a data structure that contains less number of tables and is not useful for eliminating data redundancies. This format is generally used for carrying out a process of data analysis.

A database needs to organize quick transactions and therefore, it uses normalized data structure to carry out the process. This data structure eliminates redundant data and the related information is stored under the same category. This also ensures using less disk space and maximizing response times.

The use of applications is also a varied factor in data warehouse and database.

A data warehouse stores data that is generally historical, from multiple applications. These applications serve as data sources for a data warehouse. These sources include social media, customer relationship management and various other sources.

A database works by using a single application as its data source. This application generally runs on Online Transactional Processing (OLTP). As a database requires organizing quick transactions, these databases contain a detailed format of data in an organized form that leads to the efficient management of storage space, faster response to queries, etc.

The number of concurrent users is also a major differentiating factor between a data warehouse and a database.

A data warehouse has the capability of supporting less number of concurrent users. That means a limited number of users can use the system simultaneously.

A data set can uphold an immense measure of simultaneous clients with the assistance of online conditional handling without influencing its exhibition. This empowers large number of clients to all the while use and interface with the framework.

Both the platforms work on a specific set of cases according to their ability to perform.

Database versus Data Warehouse for Analytics

A data warehouse works on the cases that focus on generating a high-level analysis of the data that is gathered from various sources. These cases are being used by industries to make more informed business decisions. The cases that are being used by a data warehouse include conducting market research through in-depth analysis of a chunk of data, analyzing user behaviour and making decisions on the basis of the same, use of data mining process to obtain insights about the industry and the ongoing trends.

A database works on the cases that are used for carrying out day-to-day transactions in an organization. Some of the cases that are used generally include hospital registering, an airline with an online booking system etc.

The timelines on which these platforms operate also differ as per the capabilities of these systems.

In the case of a data warehouse system, the data stored is generally historical as this system is generally used for business reporting and other analytical purposes. The historical data is stored by accumulating varied copies of the data from multiple sources.

On the other hand, a database doesn’t contain historical data as it works by processing day-to-day transactions. So, it generally stores current, transactional data.  

A warehouse generally works into a group of multiple databases that are specially designed to retrieve and analyze a large collection of data. The data warehouse has the ability to work flexibly and ensures a high rate of security.

A database works as a building block of data in an organized manner. The database doesn’t perform analysis on very large data sets.

Every industry needs to have such systems for storing and analyzing the chunk of data that is accumulated. These industries are now focusing on investing their resources in these systems as they have the ability to transform the way data is stored and organized.