Question

Explain why data warehouse is more beneficial for organizations than individual databases?

Answer 1

The database simply means the collection of data whereas the data warehouse means an information system that will act as a repository of data from multiple sources. The individual databases are made to meet specific purposes whereas the data warehouse shall be used for integrating, analyzing, and reporting data from multiple sources for meeting multiple purposes. The following are the benefits of data warehouses for organizations compared to individual databases.

• The data warehouse provides more security to data compared to individual databases.
• We could use multiple techniques to store and retrieve data in the case of data warehouses.
• The data warehouse provides all critical business information in a single platform.
• The data warehouses will be providing more accurate data.
• A large amount of historical data shall be stored in the case of a data warehouse.
• A data warehouse could be used for future prediction of data.
• It is very easy for a user to retrieve particular data from the data warehouse compared to individual databases.
• The data warehouses take only minimum time for analysis and reporting of data.

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