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Data Warehouse Architecture

Last Updated on November 30, 2023 by Ankit Kochar

In the ever-expanding realm of data management, organizations are increasingly turning to Data Warehousing to centralize and optimize their data for strategic decision-making. The architecture of a Data Warehouse is a critical element that defines how data is ingested, stored, and accessed. It serves as the backbone for efficient data analysis and reporting, allowing businesses to glean valuable insights. This discussion explores the intricacies of Data Warehouse Architecture, highlighting key components, design considerations, and the impact on organizational intelligence.

What is a Data Warehouse?

A data warehouse is a large and centralized repository of integrated data from multiple sources that have been optimized for querying and analysis. This data is then transformed, cleaned, and integrated into a common format that is optimized for analysis.

What is Data Warehouse Architecture?

Data warehouse architecture is the design and structure of a data warehouse, which is a centralized repository of data that is used for reporting and analysis. In simple words, we can say it is a collection of different data and a data warehouse architecture is a method of defining the overall architecture of data communication, processing, and presentation for end-client computing within the enterprise. Each data warehouse is unique, but they all share certain essential components.

The data warehouse architecture has been the pillar of corporate data ecosystems, and despite numerous changes in Big Data, cloud computing, predictive analysis, and information technologies over the last five years, data warehouses have only grown in importance.

Types of Data Warehouse Architecture

There are three types of data warehouse architecture

1) Single-Tier Data Warehouse Architecture

Single-tier data warehouse architecture, also known as basic data warehouse architecture, is a simple and straightforward approach to building a data warehouse. In this architecture, all the components required for data warehousing are installed on a single machine, and data is loaded from the operational systems directly into the data warehouse. The physical source layer, the virtual data warehouse, and the analysis layer, which may include reporting or OLAP tools, are all components. The data warehouse is virtual in this method of single-tier data warehouse architecture, which means that it is implemented as a multidimensional view of operational data, which is mostly created by specific middleware. It is also known as an intermediate processing layer, but it is not used on a regular basis in practice.

The goal of having only one physical source layer in a data warehouse architecture is to reduce the amount of data stored to achieve the goal, which eliminates data redundancies.

2) Two-Tier Data Warehouse Architecture

With the major disadvantage of single-tier architecture not having a separation of layers for analytical and transactional processing, the two-tier architecture of the data warehouse came into play. This two-tier architecture eliminates the disadvantage of the single-tier because it has a separation between the layers, which is essential in maintaining the two-tier architecture.

The two-tier data warehouse architecture comprises the following two tiers:

1. The Data Tier
This tier is responsible for storing and managing the data. It consists of the actual data warehouse database or databases, along with any associated data marts or data cubes. The data is stored in a structured format, usually a relational database

The Data Tier is a key component of a data warehousing architecture and typically consists of three main layers, as follows:

  • The Source Layer: This layer is responsible for collecting data from various sources such as transactional systems, legacy systems, external sources, and other data repositories. The data in this layer is in its raw form and is often inconsistent, redundant, and incomplete. The source layer performs basic validation and cleansing of the data and prepares it for loading into the next layer.
  • The Data Staging Layer: This layer is responsible for transforming and integrating the data from the source layer into a format that is optimized for loading into the data warehouse layer. The data staging layer performs data cleansing, data enrichment, data transformation, and data aggregation to create a consolidated and consistent view of the data. The data in this layer is often in a structured format and is optimized for loading into the data warehouse layer.
  • The Data Warehouse Layer: This layer is responsible for storing the data in a format that is optimized for reporting and analysis. The data warehouse layer is designed to support complex data queries, analytics, and reporting. The data in this layer is often in a denormalized and aggregated format and is optimized for performance and scalability.

2. The Client’s Tier
The bottom tier of the architecture consists of the database of the Data warehouse servers. This database can be classified as a relational database system.

This layer is in charge of cleaning, transforming, and loading data from the bottom tier into the database using back-end tools. This layer is also known as the data warehouse layer (containing both data marts and data warehouses)

This tier is responsible for providing access to the data to end-users. The client tier may also include other types of applications that use the data warehouse as a data source, such as custom software applications or web-based portals.

This Client Tier is the front-end application that displays the clean data so that users/clients can begin their analysis. To display the required reports, the data warehouse reports are frequently hidden in the GUI.

The Client Tier is made up of a single layer known as the Analysis Layer.

  • Analysis layer:
    This is the fourth layer of the data warehouse’s two-tier architecture. The primary focus of this layer is the integration of data that is efficient and flexible enough to issue reports, simulate hypothetical business scenarios, and perform dynamic information analysis. The analysis layer of the data warehouse architecture includes aggregate information navigators and efficient query optimizers.

3) Three-Tier Data Warehouse Architecture

The three-tier data warehouse architecture is a more complex data warehousing architecture that consists of three main tiers, which are often referred to as:

  • Bottom Tier: This tier is also known as the Data Source Layer or Operational Data Layer. It is responsible for collecting data from various sources, such as transactional systems, legacy systems, and external sources, and storing the raw data in its original format.
  • Middle Tier: This tier is also known as the Data Integration Layer or Data Staging Layer. It is responsible for transforming and integrating the data from the bottom tier into a format that is optimized for loading into the top tier. This tier performs data cleansing, data enrichment, data transformation, and data aggregation to create a consolidated and consistent view of the data.
  • Top Tier: This tier is also known as the Data Presentation Layer or Data Warehouse Layer. It is responsible for storing the data in a format that is optimized for reporting and analysis. The top tier is designed to support complex data queries, analytics, and reporting. The data in this tier is often in a denormalized and aggregated format, and is optimized for performance and scalability.

The three-tier data warehouse architecture provides greater flexibility and scalability than the two-tier architecture, allowing for more complex data integration and analytics capabilities.

Properties of Data Warehouse Architecture

The properties of data warehouse architecture that you have listed are generally accurate, although they are not an exhaustive list.

  • Security: The architecture of a data warehouse should include security measures to protect the confidentiality, integrity, and availability of data. This includes access controls, data encryption, and audit trails.
  • Administerability: The architecture of a data warehouse should be designed to be easily managed and maintained, with tools and processes in place to monitor and troubleshoot the system. This includes features such as backup and recovery, performance monitoring, and resource management.
  • Scalability: The architecture of a data warehouse should be scalable, and able to handle large volumes of data, increasing user demands. This can be achieved through techniques such as distributed processing, partitioning, and clustering.
  • Extensibility: The architecture of a data warehouse should be designed to support future growth and expansion. This includes features such as modularity, flexibility, and the ability to add new data sources or applications.
  • Separation: The architecture of a data warehouse should separate the analytical processing from the operational processing. This helps to ensure that the performance of the data warehouse is not affected by operational activities and that users can perform complex queries without impacting the performance of operational systems.

Overall, these properties are important for ensuring that the architecture of a data warehouse is effective, efficient, and reliable, and can support the needs of the organization over the long term.

Conclusion
In conclusion, a well-designed Data Warehouse Architecture is paramount for harnessing the power of data in today’s information-driven world. The thoughtful integration of components like data sources, ETL (Extract, Transform, Load) processes, data storage, and presentation layers contributes to the seamless flow of information within an organization. The adaptability and scalability of the architecture play a pivotal role in meeting evolving business needs. As technology continues to advance, the strategic implementation of Data Warehouse Architecture will remain a cornerstone for businesses striving to turn their data into actionable insights.

Security, Administerability, Scalability, Extensibility, and Separation are the five pillars of Data Warehouse architecture. It is critical to be aware of the properties and characteristics that must be considered when designing the data warehouse architecture.

Frequently Asked Questions(FAQs) related to Data Warehouse Architecture

Here are some FAQs on data warehouse architecture:

Q1: What is the primary purpose of Data Warehouse Architecture?
A1:
The primary purpose of Data Warehouse Architecture is to provide a structured and optimized framework for collecting, storing, and managing data from various sources. It aims to facilitate efficient data analysis and reporting to support informed decision-making within an organization.

Q2: What are the key components of Data Warehouse Architecture?
A2:
The key components include data sources, ETL processes, data storage (data warehouse), and the presentation layer. Data sources feed raw data into the system, ETL processes transform and load the data into the warehouse, and the presentation layer allows users to access and analyze the processed information.

Q3: How does Data Warehouse Architecture differ from traditional databases?
A3:
Unlike traditional databases optimized for transactional processing, Data Warehouse Architecture is specifically designed for analytical processing. It involves a structured approach to store and manage large volumes of historical data, enabling complex queries and data analysis for decision support.

Q4: What considerations are important in designing a scalable Data Warehouse Architecture?
A4:
Scalability considerations involve the ability of the architecture to handle increasing volumes of data and user demands. Factors such as hardware scalability, parallel processing, and partitioning strategies play a crucial role in designing a Data Warehouse Architecture that can grow with the organization’s needs.

Q5: How does cloud technology impact Data Warehouse Architecture?
A5:
Cloud technology has revolutionized Data Warehouse Architecture by providing scalable, cost-effective solutions. Cloud-based data warehouses offer flexibility, easy scalability, and the ability to leverage advanced analytics tools. Organizations can benefit from reduced infrastructure costs and improved accessibility.

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