Why Legacy Data Warehouses Cost You More And How Cloud Can Help? Shanawaz sheriff March 7, 2022

Why Legacy Data Warehouses Cost You More And How Cloud Can Help?

legacy warehouse
Why Legacy Data Warehouse are expensive

Modern-day organizations know the importance of data. They analyze a plethora of data at different velocities and make well-informed & data-driven decisions that are more accurate and reliable. However, the legacy data warehouses designed decades back may not be able to solve the modern-day problems and meet the current demands.

With data growing exponentially, businesses around the world will need a cloud-based infrastructure that can manage and store this huge data to provide valuable insights and stay ahead of the competition. Cloud data warehouses are the need of the hour! They are more flexible, intuitive, effective, and efficient when it comes to storing & managing data.

Want to know more about how cloud data warehouses are better than legacy data warehouses and why staying back with legacy data warehouses could cost you more now?

In this blog, we cover, the downsides of traditional data warehouses and the advantages of cloud data warehouses over legacy ones.

Why is Legacy Data Warehouses Costing You More?

High Failure Rates

According to a Data solutions Architect: Tim Mitchel, traditional data warehouses have failure rates of over 50%. The failure rate is this high because of two reasons:

  • Technical issues and complex architecture.
  • The inability of the Legacy Data Warehouse to meet the user’s needs and requirements.

The above challenges also appear when updating the data warehouse to meet the new data management requirements. What’s more, when such DWH projects don’t fail, they affect productivity, which causes businesses a lot of money.

Inflexible and Rigid Architecture

Businesses these days need to be more agile and adaptable. And this requires an architecture that can be easily modified as and when required. Unfortunately, a legacy on-premises data warehouse is not flexible, making it a bottleneck when meeting business requirements.

With a legacy data warehouse in place, introducing a small change to the data model can take several months. And this can cost your business thousands of dollars.

Outdated Technology

Legacy data warehouse won’t be able to meet today’s needs. After all, technology advances by the day.

Not only an outdated technology leads to performance issues, but it also leads to:

  • Storage Issues: With businesses dealing with several petabytes of data, it’s impossible to scale the storage capacities without spending large sums of money.
  • Scalability Issues: Traditional Data Warehouse systems don’t use in-memory storage and parallel processing. And this can prevent you from vertically scaling the legacy warehouse to meet your requirements.

High Redundancy and Complexity

Because of the inflexible and rigid nature of legacy data warehouses, most businesses opt for hardware add-ons to meet data needs effectively. This additional requirement results in a complex and redundant data architecture with multiple data silos that must be managed and maintained regularly.

These multiple data stores lead to unreliable and inconsistent reporting, data inaccuracy, integration, and validation issues. And all this amounts to nothing but the loss of time, resources, and money.

Slow Performance

Earlier businesses had a manageable amount of data. But over the years, with the proliferation of IoT devices, Social media, etc., the services that generate data have jumped exponentially. And this has made it hard for traditional data warehouses to deal with such high volumes of data, leading to slow performance. The insights are already stale by the time the reports are generated, and the business has new questions to ask against the data.

How can Data Migration to the Cloud help your Business in Every Manner?

The best alternative for addressing the above issues is a cloud data warehouse. A cloud data warehouse enables businesses to process, analyze, and access data quickly. The real data exists as a single repository that allows you to connect and integrate with SaaS tools and even OLTP databases.

Here are some benefits of a cloud data warehouse over the legacy data warehouse:

Reduced Overall Costs

With a cloud data warehouse, you can enjoy the pay-as-you-go model. According to this model, you only pay for the service you use. What’s more, the cloud service providers take care of the infrastructure maintenance, which further saves you from additional human resources requirements for maintaining your data storage.

High Scalability

Everything from storage capacity to processing power is scalable in the case of a cloud data warehouse. You can even automate your cloud data warehouse to scale up or down automatically as and when required.

This way, you can reduce the overall time to set up data centers which further helps procure the required infrastructure more quickly, saving you time.

In-built Data Processing

The latest cloud data warehouses allow easy integration and connection to several cloud-based services such as data analytics or BI tools. Moreover, you can enjoy ready-made tools and parallel processing, significantly reducing the time required to meet business needs. 

Furthermore, cloud data warehouses act as a unified platform for data analytics, offering ELT pipelines, self-service reporting, Data lake, and Machine Learning features. This way, more people, including scientists, data analysts, and normal citizens, can access the data.

Why legacy data warehouse

Who can help you Migrate to the Cloud?

By now, it must be clear how a cloud data warehouse is better than a legacy data warehouse. However, you need professional assistance if you’re presently using a legacy data warehouse and wish to migrate to the cloud. After all, it can be cumbersome. And if not done correctly, it can backfire.

This is when Acuvate comes into the picture. We are a global software service provider with expertise in Azure synapse Analytics, Machine learning, Artificial Intelligence for Business, advanced analytics, Self-service reporting, Data Migration & Modernization.

Our experts are very well aware of the common mistakes while migrating to the cloud. With us, you you can be assured that you don’t fall into those pitfalls.

What’s more, Acuvate always creates unique strategies based on your business to migrate the data to the cloud successfully.

All in all, you can expect an enterprise data warehouse migration solution from Acuvate. For more information on how we can help you migrate to the cloud or other queries, reach out to our experts now.