A data warehouse is a storage of information from the past that allows analysts to examine data from multiple sources to get actionable insights. A data warehouse can be deployed on-premises or in the cloud. The decision you make will depend on your specific business requirements and factors such as capacity and cost, as well as control, security and resources.

Data warehouses are used to store huge amounts of historical data from a company and to perform in-depth analysis for business intelligence or reporting (BI). They can store relational as well as non-relational data. They are typically structured, which means that the data is loaded and extracted after which it is transformed to schemas that are pre-defined prior to being stored. This makes it easier to run queries against them, rather than directly against operational source systems.

The traditional on-premises warehouses require expensive equipment and software to be hosted. They are limited in storage to the computing power and must continually discard older data in order to make room for more recent data. Data warehouses allow you to run historical inquiries that aren't possible with operational systems, since they only refresh with real-time data.

A cloud-based, data store or managed service, is completely automated and highly efficient solution. It is ideal for businesses that need to analyze large amounts of data in the long run. It is typically a more economical alternative to on-premise data warehouses since it eliminates the need to invest in large servers and offers flexible pricing. You can pay according to throughput or hourly use or a fixed amount of resources.

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