Recently, TMR Research released a report detailing Data Warehouse as a Service (DWaaS) market trends and an overview of its expected growth in the next decade. The report anticipates “strong development” for the market through 2028.
Here’s a summary of the highlights:
Private cloud opening doors
As adoption of private cloud increases, the Data Warehouse as a Service market will also realize gains — and the report validates this correlation. Having greater control of enterprise data while also benefiting from on-demand insights is appealing to many companies ready to move legacy on-premises data warehouses to the cloud. Especially for oversight into supply chain operations, the move is a clear advantage. Having service providers who offer expertise at each stage of the migration will help companies capitalize on the investment sooner and with long-term execution in mind to keep abreast of changes from software updates to data privacy and security.
Read more on the advantages of a cloud data warehouse here.
Data privacy regulations driving demand
Regulations are difficult enough to stay on top of as they evolve and are enacted, while also considering the structural and process changes that must be undertaken to remain compliant. For this reason, data warehouse as a service outsourcing is appealing to companies who want to be assured — and in turn, able to assure their own customers — that their systems are up to date and they can trust in a broad range of IT expertise to cover specialized needs to keep data secure. The quality of a data warehouse — and associated architecture and organization of its data lakes makes a big difference when it comes time to review data, whether it be transactional, third party, or individual customer or patient records. Managing risk through a disciplined data warehouse strategy is a benefit of working with an external service provider.
Reducing staffing pressures
Outsourcing has long been heralded as a way to reap the benefits of in-demand talent without the added stress of acquisition and retention. Data warehouse talent is no exception. The report reinforces this advantage, emphasizing the catalyst for cloud migration in the first place: having faster, more immediate access to data to make business decisions. Relying less on in-house IT technicians to retrieve valuable business intel will translate into a more data-driven culture while also placing less pressure on having to dedicate an IT team to maintenance and management of hosted data warehouses. The report does offer a note of caution: companies may still be reluctant to modernize outdated ETL tools, despite demonstrated advantages and a shortage of skilled IT staff for monitoring the extraction process. A strong service provider can help ensure ETL customization is possible in tandem with cloud migration and management.
A focus on financial services
Banking, financial services and insurance (BFSI) is a vertical that is embracing data warehouse as a service to help make sense of the proliferation of data that accumulates across its highly distributed geographies and departments. In addition to the benefits surrounding regulatory oversight discussed above, this industry in particular is ripe for transformation in the cloud, and data warehouse as a service will play a role in this process.
The next decade will be full of opportunities for companies to govern their data well for business impact. If you’re curious about how Clarity partners with Snowflake, and their cloud data warehouse, let’s talk.