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Data warehouse, data lake and data lakehouse: A comparison of data architectures

13.6.2023
5 min reading time

Comparing data architecture: data warehouse, data lake and data lakehouse

In today's data-driven world, companies rely on efficient data architectures to store and analyze their valuable information and make decisions based on it. In the field of big data, there are three common approaches used to manage large amounts of data: the data warehouse, the data lake, and the newer concept of the data lakehouse. In this article, we will compare these three approaches in detail, analyzing their functions, use cases, and advantages and disadvantages.

Data warehouse: Store structured data centrally

Functions

The data warehouse represents the classic architecture in this trio and is a centralized database that integrates structured data from various sources and optimizes it for analytical purposes. It is often used for business intelligence, reporting, and data analysis. A data warehouse follows a rigid schema that is defined and designed in advance. It offers clear structures and enables fast queries and aggregations.

  • Structured data: The data warehouse supports the storage and processing of structured data with predefined schemes.
  • OLAP (Online Analytical Processing): It enables complex analyses, ad-hoc queries and multidimensional data models.
  • ETL processes (extract, transform, load): Data is extracted from various sources, transformed and loaded into the warehouse.

Deployment scenarios

  • Annual reports and analyses
  • Business intelligence
  • Data mining

Pros and cons

Advantages: Data warehouses provide a consistent data source, optimized query performance, and security and control over data access.
Disadvantages: They are usually expensive to implement and scale, require structured data modeling in advance, and are less flexible as data requirements change.

Data Lake: Store raw data flexibly and scalably

Functions

A data lake is a huge storage pool that receives structured, unstructured, and semi-structured data in its original format. In contrast to a data warehouse, a data lake does not define the schema in advance. Instead, the data is stored “raw” and only transformed when needed.

  • Heterogeneous data formats
  • High scalability through distributed systems
  • Data exploration and analysis possible

Deployment scenarios

  • Big data analytics
  • IoT data analytics
  • Advanced analytics & machine learning

Pros and cons

Advantages: Flexibility, scalability, exploratory analyses of large amounts of unstructured data.
Disadvantages: Potentially low data quality and difficult management without clear structures. Infrastructure and governance are essential.

Data Lakehouse: The best of both worlds

Functions

The data lakehouse concept combines the benefits of data warehouses and data lakes to create an integrated data architecture. It adds structured processing capabilities to the data lake to improve data quality and query performance.

  • Schema-on-read: Structuring when retrieving, not loading
  • Delta engine for efficient processing
  • Streaming and real-time data support

Deployment scenarios

  • Real-time data analysis
  • Data Science & Machine Learning
  • Hybrid data architectures

Pros and cons

Advantages: Flexibility, scalability, real-time processing, and integration of structured and unstructured data.
Disadvantages: High technical standards in design and implementation, combination of different technologies required.

Conclusion: Which data architecture is right for your company?

Data warehouses, data lakes, and data lakehouses each offer different functions for different use cases. While a data warehouse is suitable for structured data analysis and business intelligence, data lakes offer flexibility in data storage and enable the analysis of large amounts of data. The concept of the data lakehouse attempts to combine the advantages of both approaches by integrating structured data processing functions into a data lake. The choice of the appropriate data architecture depends on the specific requirements and objectives of a company. It is also possible to use a combination of these approaches in hybrid architectures to leverage the advantages of different approaches and create synergies.

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Foto: Lars