Why Can Cloud Data Warehouses Help Save Cost?

Cloud Data Warehouses

Why Can Cloud Data Warehouses Help Save Cost?

Cloud Data Warehouses

Data is essential in today’s organizations. They analyze a large amount of data at various speeds and make well-informed, data-driven, more accurate, and reliable decisions. However, legacy data warehouses built decades ago may be incapable of solving modern-day problems and meeting current demands.

With data growing exponentially, businesses worldwide will require a cloud-based infrastructure to manage and store this massive amount of data to provide valuable insights and stay ahead of the competition. Cloud data warehouses are an absolute necessity! They are more adaptable, intuitive, effective, and efficient in storing and managing data.

Want to learn more about how cloud data warehouses outperform legacy data warehouses and why sticking with legacy data warehouses may now cost you more?

In this blog, we will discuss the disadvantages of traditional data warehouses and the benefits of cloud data warehouses over legacy ones.

Why are legacy data warehouses more expensive?

High Failure Rates

Traditional data warehouses have failure rates of more than 50%, according to Tim Mitchel, a Data Solutions Architect. The failure rate is so high for two reasons:

  • Technical issues and complex architecture.
  • The Legacy Data Warehouse’s inability to meet the needs and requirements of the users.

Difficulties arise when updating the data warehouse to meet the new data management requirements. Furthermore, when such DWH projects do not fail, they impact productivity, which costs businesses a lot of money.

Inflexible and Rigid Architecture

Businesses today must be more agile and adaptable. And this necessitates an architecture that can be easily modified as needed. Unfortunately, an on-premises data warehouse that has been around for a long time is rigid, which makes it hard to meet business needs.

With a legacy data warehouse in place, even minor changes to the data model can take months. This can cost your company thousands of dollars.

Outdated Technology 

Legacy data warehouse won’t be able to meet today’s needs. After all, technology advances by the day.

Not only an outdated technology leads to performance issues, but it also leads to:

  • Storage Issues: With businesses dealing with petabytes of data, scaling storage capacities without spending large sums of money is impossible.
  • Scalability Issues: In-memory storage and parallel processing are not used in traditional Data Warehouse systems. This can make it difficult to scale the legacy warehouse to meet your needs vertically.

High redundancy and complexity

Because legacy data warehouses are inflexible and rigid, most businesses opt for hardware add-ons to meet data needs effectively. As a result of this additional requirement, a complex and redundant data architecture with multiple data silos must be managed and maintained regularly.

These disparate data stores result in dishonest and inconsistent reporting, data inaccuracy, integration, and validation issues. And it all comes down to a waste of time, resources, and money.

Slow Performance

Businesses used to have a manageable amount of data. However, data-generating services have increased exponentially with the proliferation of IoT devices, social media, and so on. This has made it difficult for traditional data warehouses to deal with such large amounts of data, resulting in slow performance. By the time the reports are generated, the insights have become stale, and the business has new questions to ask about the data.

How can Cloud Data Migration Benefit Your Business in Every Way?

A cloud data warehouse is the best solution for addressing the issues mentioned above. A cloud data warehouse allows businesses to process, analyze, and access data quickly. The real data exists as a single repository that can be connected to and integrated with SaaS tools and OLTP databases.

Here are some advantages of a cloud data warehouse over a traditional data warehouse:

Overall Cost Savings

You can use a cloud data warehouse on a pay-as-you-go basis. This model requires you to only pay for the services you use. Furthermore, cloud service providers handle infrastructure maintenance, saving you from the need for additional human resources to maintain your data storage.

High Scalability

In the case of a cloud data warehouse, everything from storage capacity to processing power is scalable. You can even automate your cloud data warehouse to scale up and down automatically as needed.

This reduces the overall time required to set up data centers, which helps procure the necessary infrastructure more quickly, saving you time.

Built-in Data Processing

The most recent cloud data warehouses enable simple integration and connection to various cloud-based services, such as data analytics or business intelligence tools. Furthermore, you can benefit from ready-made tools and parallel processing, significantly reducing the time required to meet business requirements.

Furthermore, cloud data warehouses serve as a unified platform for data analytics, with features such as ELT pipelines, self-service reporting, Data lakes, and Machine Learning. This allows more people to access the data, including scientists, data analysts, and ordinary citizens.

Read more: Top 6 Data Warehouses and Best Picks for a Modern Data Stack

Who can assist you in migrating to the Cloud?

By now, it must be clear how a cloud data warehouse is better than a legacy data warehouse. If you’re currently using a legacy data warehouse and want to migrate to the Cloud, you’ll need professional help. After all, it can be inconvenient. It can also backfire if not done correctly.

This is where Bestarion comes into play. We are a global software service provider specializing in Azure synapse Analytics, Machine Learning, Artificial Intelligence for Business, advanced analytics, self-service reporting, and data migration and modernization.

Our experts are well aware of the most common mistakes made when migrating to the Cloud. You can be confident that you will avoid these pitfalls if you work with us.

Furthermore, Bestarion develops unique strategies based on your business to migrate data to the Cloud successfully.

Overall, we will provide an enterprise data warehouse migration solution. Contact our experts immediately if you have questions about how we can assist you with your cloud migration.


I am currently the SEO Specialist at Bestarion, a highly awarded ITO company that provides software development and business processing outsourcing services to clients in the healthcare and financial sectors in the US. I help enhance brand awareness through online visibility, driving organic traffic, tracking the website's performance, and ensuring intuitive and engaging user interfaces.