Cloud Data Warehouse Market and the Future Beyond

The emergence of the data warehouse (DWH) is transforming the business information management landscape. It was previously restricted to manual methods and complex & bulky spreadsheets that were largely inaccessible to general users. You would agree that this exponential and rapid growth in the cloud data warehouse market has made companies realize the value of the data they generate.

Today forward-thinking enterprises migrated their data and systems to the cloud while expanding their network and markets. And this led to the rise of the cloud DWH. As we move ahead, the future of data warehousing continues to show a positive trend with the cloud data warehouse market growing at an incredible pace of 23% CAGR and will reach $12.9 billion by the end of 2026.

Growth in the cloud market is happening steadily, with enterprises of all sizes reaping the benefits of the cloud. This results in improved performance and service resiliency.

There has been a significant upside from the below factors:

1. Need for Unification and Modernization of Platforms: Enterprises are looking to augment their tech stack by moving to cloud-based DWH, solving significantly complex use cases in a very secure and reliable environment. The so-called Enterprise Data Warehouses cannot handle the variety of use cases that enterprises require in this new era of information explosion. Adding to these, enterprises now have another problem managing and maintaining various platforms catering to different use cases. This results in enterprises pushing on a journey to modernize their current environment and unify it for crafting a single version of the truth. This unification needs very tight integration with all other services in their ecosystem.
2. Faster Value Realization with Real-Time and Faster Analytics: With the ever-changing business priorities amidst rapid competition, enterprises need to generate and consume insights at a much quicker rate amidst almost near real-time to develop faster analytics for decision making. This speed of making decision analytics is now a number-one priority & organizations are moving their legacy architecture with Cloud Data warehouses. It will provide tighter integration and have performance with low latency architecture.
3. Value for Money: Shifting to cloud-based data warehouses also means they are pursuing to bring down the cost, which provides them flexibility and scale when required. Enterprises can build based on their analytical use cases and do not need to serve anything and everything upfront. Clouds DWHs help eliminate the need for building physical infrastructure, thereby making application development faster at a comparatively lesser cost.

With enterprises on their journey for modernization, listed below are some of the important trends in data warehousing that will help shape their cloud-based data journey.

1. Convergence of Datalake and Datawarehouse
2. Tighter integration with the other services in the ecosystem
3. Serverless capability is starting to become the de facto
4. Modern Datawarehouse is becoming the pivotal center for all data sharing.

Modern cloud data warehouse tools have made it easy and affordable primarily to do two things — 1) store data in the cloud, 2) query data using SQL for analysis & activation purposes. And soon, all enterprises will start investing in cloud data warehouses that will serve as a hub for deriving value through insights. It will serve as an epicenter for data sharing for different use cases across enterprise circuits. While performance will continue to be one of the critical evaluation criteria, it will enable enterprises with faster and more real-time decision-making.