Technology | 06-11-2023 | Ashish Kumar
With the rapidly increasing technology adoption and a vast amount of data usage, data warehousing is gaining popularity in the digital world. It helps organizations store, manage, and analyze data effectively and make better decisions that are essential for their business success.
The global warehouse automation market size is predicted to reach at average USD 71,030 million by 2032, expanding at a CAGR of 15.91%.
A number of data warehouse trends drive innovation and increase profitability in this sector.
In this blog, we will explore top data warehouse trends for now and the future and the steps to choose the right one to keep you ahead of the curve in 2023 & beyond.
Let's first start with its brief introduction and market stats:
Organizations utilize comprehensive & integrated data warehouses to gather, manage, and store enormous amounts of structured data from many sources. For business intelligence and decision-making purposes, it is made to assist in effective data retrieval, analysis, and reporting.
Data warehouses can store historical data and are designed for sophisticated queries, giving analytics a long-term view. Data from various operating systems is frequently cleaned, transformed, and integrated using a process known as ETL (Extract, Transform, Load).
Users may get useful insights, see patterns, and make data-driven decisions to guide corporate initiatives thanks to this aggregated organized data.
A database offered as a management solution in the public cloud that's optimized for analytics, scalability, and ease of use is known as a cloud data warehouse.
Many companies use cloud data warehouses in their data analytics and business intelligence activities as a result of the following benefits:
It is an outsourcing model in which the customer supplies the data and pays for the managed service. The hardware and software resources needed for a data warehouse are configured and managed by the service provider. Businesses will benefit from advancements in:
The coordinated use of vendors, people, processes, and technology is known as big data integration to gather, match, and enhance the use of data from many sources for decision-making.
By combining less organized big data from big data sources with historical corporate data, it is possible to uncover hidden data patterns and correlations and provide insightful knowledge. It enhances the business, which is an important step in forecasting and raising revenue.
Another crucial warehouse tech trend that's gaining importance is the usage of drone apps. The drone service market size is predicted to grow by $63.6 bn by 2025. Even popular brands like Amazon are using drones to easily navigate through complex warehouse spaces, performing activities such as stocktaking, locating items, and delivering small stocks.
By leveraging this tech trend, data warehouses can increase speed, accuracy, and cost-effectiveness. Companies use drone software for several benefits, such as saving 50% of the employee's time, minimizing click-to-ship time by 75%, and the inventory per square foot by almost 50%.
AI-enabled item verification, staff inventory, and infrastructure surveillance are also possible with fixed vehicles.
Machine learning and AI development services are the latest and future-ready warehouse tech trends for 2023 & beyond. Most companies are continuously investing in artificial intelligence and ML solutions for several reasons:
The adoption of AL/ML services helps companies in numerous ways.
For example, multiple artificial intelligence solutions can identify real-time footage of potential security threats for a safe and secure warehouse environment.
Similarly, RPA app development can help in order picking, inventory management, QA automation, and material handling. It can further minimize the operational price while improving efficiency and productivity.
That's why around 38% of logistics companies are actively using robotic solutions in their processes, freeing up human workers to concentrate on strategic tasks.
There was a time when a human workforce was required for warehouse management, inventory updates, and product separation. But now, smart robotics apps have taken over this job. The warehouse robotics market is projected to experience substantial growth, with its value forecasted to increase from $6 billion in 2022 to reach $16 billion by the year 2030.
In this way, robotics apps will increase efficiency and productivity while working with employees to automate repetitive tasks.
On the other hand, there are several tech trends in data warehouses, like wearable technologies. Smart wearables like smart glasses and wristbands equipped with real-time data capabilities have shown a great result in reducing work-related injuries.
By adopting this warehouse automation trend, you can get valuable insights, better decision-making power, and streamlined operations.
Another warehouse tech trend, the adoption of RFID (Radio-Frequency Identification) tags, helps enterprises to innovate at a faster rate. RFID tags can increase SKU-level inventory accuracy from an average of 63% to 95%.
Real-time analytics is becoming the new norm, and data warehouses are evolving to accommodate this need. Here's how data warehouses are facilitating real-time analytics trends:
Data governance and compliance is taking great significance in the data warehouse sector. The following data warehousing trends are shaping data governance and compliance:
Here are several criteria you need to keep in mind when selecting the right data warehouse for your business:
When it comes to picking the right data warehouse for your business, selecting the right trend between cloud and on-premises storage is the first thing to do
There are certainly benefits of both warehouse systems:
In a nutshell, cloud services offer:
On the other hand, on-premise warehouse storage provides benefits:
Now, it’s time to select the right vendors:
For on-premise storage, you can select the option from;
Although there are several options, it would be better if you choose PostgreSQL for its proven track record of reliability, compatibility, and open-source roots. It's also essential to consider your company's data types and your existing ecosystem.
For cloud systems, the top solutions are;
One of the most crucial factors for your data warehouse will be the cost. Depending on the particular use case for a warehouse in your firm, it's also one of the most variable. You will typically have to pay for some combination of storage, warehouse size, run time, or searches while using a data warehouse.
Search for a solution with a reduced computing cost if you frequently conduct queries on the data. You should opt for a solution with cheap storage costs if you have a lot of data, but only one team uses it.
The storage prices are often relatively low. There aren't significant up-front costs to buy, install, and configure the solution is a benefit of all cloud-based, relational data warehouses.
Postgres might be an excellent option for a business if you're a startup or a small firm with a limited budget.
It also needs to consider ongoing costs, which are often substantially higher than the assigned resource at the start.
There are several ongoing costs to consider:
You need to figure out "What's included in scaling up your data warehouse?" for your fast-growing business.
For that, you need to get a rough sense of;
Finally, you want to set up your warehouse easily. If you already have a number of tools, ensure the selected one works perfectly with the existing tech stack.
Not only will it make implementation easier, but it'll save your dedicated team from building multiple custom ETL pipelines to get your data where it needs to be.
Conventional databases are designed to handle transactions, not to support analytical queries. Conversely, moderate data warehouses are made with optimal query performance in mind. To speed up complex queries, they employ a variety of strategies like indexing, partitioning, and in-memory processing.
Real-time or almost real-time insights are made possible by your data scientists and analysts being able to access and analyze huge datasets more rapidly and effectively.
One of the main benefits of cloud-based data warehouses is their high degree of scalability. When the volume of your data increases, they can increase storage and processing power. This implies that you won't need to rearchitect or experience any major disruptions as your data warehouse expands to meet your needs. It offers the adaptability to adjust to shifting analytical demands and data requirement
When making decisions based on data, data quality is crucial. Data validation and cleaning procedures are included in data warehouses, which aid in finding and fixing mistakes or inconsistencies in the data. Businesses can rely on the information for crucial insights if high standards of data quality and accuracy are maintained. In the end, this results in more accurate decision-making, fewer mistakes, and greater data trust.
With rapid technology adoption and the huge volume of data, data warehousing is growing significantly. It has become necessary for modern businesses, helping enterprises effectively harness the power of their data for improved decision-making.
By understanding the data mentioned above, warehouse tech trends, and key concepts, you can bring profits to your organization.
If you want to get benefits from high-performing DWH or implement these warehousing tech trends into your system, get in touch with a dedicated data warehouse service provider like VLink.
They will provide data warehousing services, including advisory, implementation, support, migration, and management. Their experts will also help you consolidate data in an efficient DWH solution and enable company-wide analytics and reporting.