Technological advances are impacting all areas of the economy. One of the biggest changes in recent years is the evolution of data warehouse as a service. For those who may not know, data warehouse as a service is a model in which a service provider or company both configures and manages the equipment (such as hardware and software) that a data warehouse requires. In exchange, the customer provides the data to the service provider and pays for the provider to manage this service. The market has quickly adopted this model, as various research studies are anticipating a multi-billion dollar growth in this industry over the next decade.
Factors Driving the Growth of Data Warehouse as a Service
There are several different factors that have contributed to the growth of data warehouse as a service. Some of these include an increase in the private cloud industry in addition to the ability of data warehouses to perform advanced analytics on the data in their possession. In exchange, companies providing the data can then use this information to make educated and informed business decisions. As personnel continues to become more familiar with this service model, the growth of data warehouse as a service should only accelerate.
How do Businesses and Markets Use this Service?
When businesses use this data, the goal is always to maximize profits and improve their bottom line. First, data warehouse as a service often provides reduced overhead costs. The customer does not have to pay to staff the warehouse, as this is managed by a separate company. This allows companies to shrink their IT departments and put this money towards research, development, and increasing inventory. In addition, those who elect to go with data warehouse as a service have the ability to negotiate with the service warehouse for increased storage capacity, improved throughput, and better performance. Better yet, businesses have the ability to scale these requirements as their business grows and their needs increase. In this fashion, companies are able to scale easily, renegotiate when needed, and only pay for what they require.
The Growth of Data Warehouse as a Service Moving Forward
As the cloud continues to grow, the global economy becomes more connected, and the technology and analytics improve, companies are only going to rely on these service warehouses even more. The ability to cut overhead costs by consolidating their data under one roof offers numerous benefits. Furthermore, as the security of this data becomes more important than ever before, companies are going to lean on the expertise of specialists who can cost-effectively safeguard their information. It is important for companies to take advantage of these technological advances because they offer a solid return on their investment.