The data warehousing industry is set to grow to a staggering $30 billion by 2025. And when you consider just how rapidly the technology is being adopted by businesses worldwide, that’s not surprising. 

With the amount of data that most companies collect increasing every year, it’s only natural that effective and affordable solutions for storing and managing that data have become increasingly needed as well.

But why is a cloud data warehouse such a popular option? And what types of benefits can it offer over the alternatives?

To help you decide whether a cloud data warehouse is the right approach in your situation, let’s explore some of the biggest advantages it can offer below.

Lower Costs

When storing and managing data, the cost is always a top consideration. And one of the biggest advantages that data warehousing can offer is affordability, especially when you consider the range of powerful features it can offer.

Compared to on-premise solutions, the cloud data warehouse cost can be much more appealing, not only in the short-term but also when considering how much it would cost to scale up your operations as your data needs grow.

Cloud data warehouses also offer a ton of flexibility, allowing you to purchase more data storage during peak season and opting for a lower plan when you don’t have as much activity. 

Meanwhile, if you had an on-site solution, you would have to develop it based on the maximum amount of data you plan on collecting, even if you would not use that much storage and computing power on a regular basis. 


For a long time, cloud computing had a reputation for being at risk of hacks and data breaches. But despite a few bad examples, cloud data storage is as secure (and even more secure) as any on-premise solution you could use.

Today’s cloud technology advancements have made gaining unauthorized access virtually impossible, and all reputable data warehousing providers continually update their security measures to stay ahead of any potential dangers that your data might face. 

Cloud encryption technology ensures that no matter how flexible you want to be with who you authorize to access data, tools like multi-factor authentication make it much easier to protect your data while still providing access to anyone who needs it.

Easy Deployment

When you have a lot of data coming in, you need a solution for managing it right now and not months in the future. And with a cloud data warehouse, you can be up and running on the same day, customizing the solution to your current needs and scaling up or down whenever necessary.

This flexibility is what makes cloud data warehousing especially hard to beat. You don’t have to worry about investing in an on-premise solution for years in advance and risking miscalculations that would leave you either having a setup that’s too powerful or not enough for your needs. 

Having the right infrastructure is a crucial step in using data in your business. That’s why cloud solutions are the perfect way to approach data storage without having to make long-term commitments or rely on rough estimates that are likely to be adjusted as you go forward. 

Less Maintenance

Ensuring that your data warehouse continues working and avoids downtime is a big hassle that companies with on-site solutions have to deal with. Entire IT departments have to be set up just to resolve issues, schedule updates and perform routine maintenance, which is an added expense that further inflates the cost of having an on-premise solution.

Meanwhile, if you opt for a cloud data warehouse, you can choose a self-service solution that will be completely autonomous and managed for you. All the updates, fixes, and maintenance will be performed automatically or by the provider, so you can take advantage of the powerful features that the warehouse comes with without any of the headaches that are typically associated with it. 

Sure, setting up the specific applications you want to connect to the data warehouse will still require your attention, but the amount of work that’s necessary will be much more manageable, especially for smaller companies that don’t have large teams and need to allocate their resources as effectively as possible.

Streamline Analytics

Streamline Analytics

One of the main reasons for adopting data warehousing solutions in the first place is the ability to collect data from various sources and analyze it in a unified and consistent format. 

And with cloud warehousing, you can basically use a plug-and-play approach for connecting your data to a single source and using advanced ETL tools like Informatica to enrich your data and gain valuable insights in the process.

You can perform large-scale analyses of historical Business Intelligence and Analytics data, quickly setting up processes that used to be reserved for corporations with multi-million dollar budgets. 

Data Recovery

No matter how well you secure your in-house servers, they will always be at risk of succumbing to disasters or other unforeseen events like a fire or a flood.

And that’s another reason why cloud technology used for data warehousing makes so much sense.

Instead of having to risk losing years of data, you can rest assured that it’s stored on the cloud, in multiple locations, and fully protected against any accidents that could possibly cause a threat.

Your team doesn’t have to worry about backups, security protocols, or anything else. The service provider handles all of this, takes all responsibility for the data, and provides you with complete peace of mind about its storage security.

Final Words

Data warehousing is an industry on the rise, and a big part of that is cloud technology making it much more accessible to companies of all sizes. 

The benefits above just scratch the surface of why cloud data warehousing is the right choice, but the only way to discover the real possibilities in your situation is to implement the technology and see how it can transform your business. 


Sumit is a Tech and Gadget freak and loves writing about Android and iOS, his favourite past time is playing video games.

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