Data Architecture - Modern Data Warehouse

In data architecture, the Modern Data Warehouse (MDW) is a central place where organizations can store and analyze all their data. It combines the organized structure of relational data warehouses (RDWs) with the flexibility of data lakes. This means businesses can access real-time data, spot trends, and improve how they connect with customers.

By making the most of their data, Modern Data Warehouse help organizations stay innovative and competitive. In this chapter, we will look at the architecture, how MDWs work, and the steps to implement them.

Modern Data Warehouse Architecture

The architecture of a Modern Data Warehouse (MDW) combines features from relational data warehouses (RDWs) and data lakes. This design allows for flexible data handling and strong analytics.

The structure of a Modern Data Warehouse (MDW) combines the organized layout of relational data warehouses (RDWs) with the flexibility of data lakes. This setup makes it easier for organizations to store and analyze their data efficiently.

Structure of MDW

The structure of a Modern Data Warehouse (MDW) is designed to handle different types of data and analytic processes. It includes.

• Relational Data Warehouse (RDW): This uses a top-down approach, meaning it needs careful planning before any data can be loaded (known as schema-on-write). It's perfect for analyzing historical data.
• Data Lake: This takes a bottom-up approach, allowing quick access to data with minimal initial setup (known as schema-on-read). It's especially useful for machine learning and identifying future trends.

Data Flow Stages in MDW

The data flow stages in a Modern Data Warehouse (MDW) explain how data is collected, stored, processed, and analyzed. This process turns raw data into useful insights for businesses. Here's how it works:

• Ingestion: The MDW can gather different types of data from different sources, including both structured (like databases) and unstructured data (like emails or social media posts).
• Storage: Then, the collected data is stored in a data lake, which provides flexible and cost-effective options for keeping large amounts of data.
• Transformation: After that, computing power is used to clean and organize the data, making it easier to work with and more efficient to analyze.
• Data Modeling: Once the data is prepared, it is moved from the data lake to the Relational Data Warehouse (RDW), often arranged in a star schema to simplify reporting.
• Visualization: Finally, users can analyze the organized data using familiar reporting tools, making it easy to understand and act on the insights.

Implementation Considerations for MDW

When setting up a Modern Data Warehouse(MDW), organizations should consider a few important points.

• How Often to Extract Data: They need to decide how frequently to pull data and ensure there is enough capacity for a smooth process.
• Using Machine Learning: Machine learning can be used at different steps to help uncover useful insights from the data.
• Direct Data Flow: Not all data needs to go through every step; some can move directly from the source to the Relational Data Warehouse (RDW).

Modern Data Warehouses(MDWs) are becoming popular because they offer a flexible way to manage data. They help organizations use the best features of relational data warehouses(RDWs) and data lakes together, making it easier to handle and combine data.

Advantages of Modern Data Warehouses

Modern Data Warehouses(MDWs) offer many advantages that help organizations in managing and analyzing their data. Here's how they can truly benefit businesses.

• Real-Time Data Access: MDWs allow businesses to access data in real time, helping them make quick decisions and respond quickly to market changes.
• Flexibility: They can work with both structured and unstructured data, allowing organizations to adjust to different data needs.
• Scalability: MDWs can grow with a business, easily handling large amounts of data, which is perfect for expanding companies and big data applications.
• Improved Analytics: By combining data from different sources, MDWs provide a complete view that leads to deeper insights and better analytics.
• Cost-Effectiveness: With options for cloud storage, MDWs often offer a more affordable way to store and process data compared to traditional methods.

Disadvantages of Modern Data Warehouses

While Modern Data Warehouses have many advantages, there are also some drawbacks to keep in mind. Understanding these limitations is important for successful implementation.

• Complexity: The combination of different data types in MDWs can make them complicated to design and manage, requiring special skills and resources.
• Initial Setup Costs: Starting an MDW can involve a lot of money for technology and infrastructure.
• Potential Data Duplication: Needing to copy data in both the data lake and the regular data warehouse can increase storage costs and create management issues.
• Performance Issues: Depending on how the system is set up and how much data it processes, it may slow down, especially with large amounts of data.
• Data Governance Challenges: Ensuring data quality, security, and following rules can be more challenging in a system that uses different types of data.

Combining RDW and Data Lake

In a Modern Data Warehouse (MDW), the data lake is where data is stored and prepared, while the Relational Data Warehouse (RDW) makes sure the data is secure and follows rules.

Data Lake

A data lake is a flexible storage space where data scientists and technical users can easily work with large amounts of raw data. It helps them explore and clean the data.

• It can handle both large batches of data and real-time streaming.
• Users can analyze and improve data, even when it needs a lot of processing power.
• It also keeps older data and backups from the Relational Data Warehouse (RDW).
• Users can create copies for testing and exploration without changing the original data.
• Accessing the data is quick and doesn't require strict formatting.

Relational Data Warehouse (RDW)

The Relational Data Warehouse is designed for business users who want quick and easy access to structured data, making it great for generating reports and dashboards.

• It's optimized for fast queries, especially for complex searches.
• Many users can run queries simultaneously without slowing down the system.
• It includes strong security measures to protect sensitive information.
• There are different tools available to help users work with the data.
• It's ideal for answering specific questions and gaining valuable insights.

Stepping Stones to the MDW

Creating a Modern Data Warehouse (MDW) is a big task that requires a lot of investment in technology and resources. As organizations start this journey,they often need temporary solutions to meet their current data needs. These solutions are steps toward a complete Modern Data Warehouse, helping businesses stay flexible while using their data effectively.

Here are three common types of stepping-stone architectures.

• EDW Augmentation
• Temporary Data Lake Plus EDW
• All-in-One

Each option has its own advantages and disadvantages. Their effectiveness in helping an organization move to a Modern Data Warehouse (MDW) depends on the organization's needs, existing systems, budget, and goals. Let's take a closer look at each one.

EDW Augmentation

Enterprise Data Warehouse(EDW) Augmentation is a method for companies that already have a local Enterprise Data Warehouse(EDW) and want to manage larger data sets, often known as "big data". This approach helps organizations make the most of their data while addressing challenges related to storage and processing capacity.

How EDW Augmentation Works

In this setup, a cloud-based data lake is created to store large amounts of data. Users can run queries and create reports from this data lake, while the main data stays in the Enterprise Data Warehouse(EDW). This allows companies to use cloud resources to manage big data without fully replacing their existing systems.

Benefits of EDW Augmentation

Here are some key benefits of using Enterprise Data Warehouse(EDW) Augmentation.

• Increased Capacity: The cloud data lake helps store and process more data, making it easier to manage large datasets.
• Cost-Effective: This approach is an affordable way to do advanced data analysis while keeping the existing Enterprise Data Warehouse (EDW).
• Supports Business Growth: It helps organizations change their data management to meet new business needs as they grow.

Challenges of EDW Augmentation

While Enterprise Data Warehouse(EDW)Augmentation has many benefits,there are also some challenges that organizations should keep in mind.

• Data Transfer Issues: Moving data between the EDW and the data lake can be slow.
• Tool Compatibility: Current tools for running queries might not work well with the data lake, making it harder to access information.
• Need for New Resources: Organizations might need more computing power and skills to manage data in the lake, which can add costs.
• Workload Balance: This approach doesn't reduce the workload on the existing EDW, so it may still face performance problems.

Migration with EDW Augmentation

This setup can help organizations slowly move their local Enterprise Data Warehouse(EDW) to the cloud. Once the data lake is in place, companies can start transferring data from the EDW to the lake, and possibly to a new cloud-based Relational Data Warehouse (RDW) as part of a full Modern Data Warehouse (MDW).

Temporary Data Lake Plus EDW

The Temporary Data Lake Plus EDW approach is used when companies need to work with big data but don't have time for extensive changes. This setup helps reduce the strain on the EDW by using a data lake temporarily.

How Temporary Data Lake Plus EDW Works

In this model, the data lake is a temporary storage space where data is kept and improved. All queries and reports are done through the Enterprise Data Warehouse(EDW), making it easy to set up and process without causing major problems.

Benefits of Temporary Data Lake Plus EDW

The Temporary Data Lake Plus EDW approach has many advantages that help organizations manage their data more effectively.

• Improved Performance: By moving processing tasks to the data lake, the overall performance of the EDW gets better.
• Speed and Flexibility: Using different computing resources in the data lake improves processing speed and provides more flexibility.
• Cost-Effective Solution: This method allows organizations to manage large datasets without interrupting their current EDW operations, making it a practical and adaptable choice.

Challenges of Temporary Data Lake Plus EDW

One of the main challenges of the Temporary Data Plus EDW approach is that organizations may not fully take advantage of the benefits of the data lake since it is only used temporarily. This limited use can stop them from accessing all the features and benefits that a data lake provides, making it less effective in improving data management.

Migration with Temporary Data Lake Plus EDW

This approach can easily transition into a full Modern Data Warehouse (MDW) with just a few changes, making it a practical stepping stone for organizations.

All-in-One

The All-in-One architecture is popular among organizations, especially startups and small businesses, looking for an easy way to manage data. It allows for quick prototyping and focuses on getting immediate results.

How All-in-One Works

In this setup, all data reporting and queries are done directly in the data lake, removing the need for a separate Relational Data Warehouse (RDW). This makes the overall data structure simpler.

Benefits of All-in-One

The All-in-One approach has several important benefits that make data management easier for organizations.

• Quick Setup: This model lets you get everything up and running quickly, so you can access your data right away.
• Simpler Structure: By keeping all data management in the data lake, it reduces the need for complicated maintenance and connections.
• Flexibility: This setup can easily change to work with different types of data and new requirements.

Challenges of All-in-One

The All-in-One approach has some challenges, especially especially when it comes to performance. Without a Relational Data Warehouse (RDW), organizations may struggle with speed, security, and user experience. While some data science-focused companies might get by with just a data lake, they will eventually need to add an Relational Data Warehouse (RDW) to fully benefit from a complete Modern Data Warehouse (MDW).

Migration with All-in-One

For some organizations, especially those focused on data science, using just a data lake might be enough. However, to fully transition to a complete Modern Data Warehouse (MDW), they will eventually need to add a Relational Data Warehouse (RDW).

This chapter explained the Modern Data Warehouse (MDW) and the five steps in the data journey: ingestion, storage, transformation, modeling, and visualization. We discussed the benefits and challenges of Modern Data Warehouses (MDWs) and explored methods like EDW augmentation and temporary data lakes.