Why Are Businesses Adopting Date Warehousing Solutions?
The rapid digitization of business organizations is leading to the generation of a large volume of structured, semi-structured, and structured data. Organizations are deploying data warehouse services to leverage this information to enhance their productivity, augment their profits, reduce future risks, and gain and retain customers. Owing to all these benefits, the adoption of big data storing, managing, and analyzing solutions is increasing at a significant pace. The adoption of data warehouse as a service (DWaaS) helps businesses in deploying third-party business intelligence (BI) applications and receiving query results in a short duration.
Another factor stimulating the demand for DWaaS solutions is the growing usage of the hybrid cloud technology by enterprises across the globe to achieve operational flexibility. With the hybrid cloud technology, companies can shift their on-premises infrastructure to the public cloud without the need for a third-party service provider. Owing to this factor, the data warehouse as a service market is expected to accelerate at a high CAGR of 29.2% during the forecast period (2020–203. The market stood at $1.4 billion in 2019, and it is projected to reach $23.8 billion by 2030.
In addition to business enterprises, DWaaS is adopted in sectors such as retail and e-commerce, government, manufacturing, healthcare, information technology (IT) and telecom, and banking, financial services, and insurance (BFSI). Among these, the retail and e-commerce industry widely deploys DWaaS solutions to predict consumer behavior via data analytics, on account of the increasing adoption of artificial intelligence (AI). In the same way, banks, financial institutions, and healthcare facilities use this service for fraud detection and threat management, due to the increasing cases of online fraud and growing volume of data.
All these end-users deploy different types of DWaaS solutions as per their requirement. Thus, the type segment of the data warehouse as a service market is categorized into enterprise data warehouse (EDW) and operational data store (ODS). Under this segment, the ODS category is expected to showcase the faster growth during the forecast period, because these solutions can integrate data from multiple platforms on a single platform, thereby smoothening the process of operational reporting. Moreover, ODS solutions use BI tools to derive useful inferences from the latest data.
According to P&S Intelligence, North America made the highest usage of DWaaS solutions in the past, and it will retain its dominance in the coming years. This can be ascribed to the increasing usage of data analytics in the healthcare, BFSI, government, and retail and e-commerce sectors and rising demand for personalized services by customers. Furthermore, the Asia-Pacific (APAC) region will demonstrate the fastest growth in the adoption of these services due to the soaring demand for cloud-based data warehousing solutions by BFSI companies. Moreover, the digital transformation in India, Singapore, Hong Kong, and Australia is propelling the demand for DWaaS solutions.
In recent years, data warehouse as a service market players have started focusing on product launches to increase their footprint and edge out their competitors. For instance, in October 2019, SAP E launched a solution that integrates all the data sources of a business organization. With this tool, named Data Warehouse Cloud, users can manage data, perform analytics, develop and integrate applications, and receive related services. Similarly, in September 2019, Cloudera Inc. had introduced Cloudera Data Warehouse, a cloud-native data warehousing service, on its Cloudera data platform (CDP), to retrieve any form of data from anywhere and simplify the lifecycle of data warehousing.
Thus, the growing deployment of the cloud technology in corporate houses, banks, retail stores, government organizations, and healthcare facilities and the rising volume of data are amplifying the usage of DWaaS solutions.
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