Organizations of all sizes worldwide have been moving their data warehouses to the cloud. Data modernization has seen a significant upsurge, with Gartner predicting 75% of databases to be migrated or deployed on the cloud by 2022. This upward trend is set to bring new services that run on the cloud infrastructure and become the new platform for data management.

Modernizing legacy data warehouses by moving to the cloud involves upfront investment of resources as well as time. Organizations must look for strategic approaches for streamlining the data modernization process while identifying and mitigating underlying challenges. They must also follow key best practices for leveraging the benefits of data warehousing on the cloud to achieve expected results effectively.

Key Challenges Associated with Data Warehousing on the Cloud

The cloud has become a highly reliable deployment option for applications of organizations. Being a robust platform for business intelligence, the cloud helps organizations reduce the TCO, boost agility, and enhance scalability. However, several organizations are reluctant to the cloud due to concerns regarding protection of sensitive information. It is a common demand among organizations that migrating data warehouses to the cloud must not only be seamless but also ensure addressing security needs.

Organizations must define their requirements well to come up with a holistic solution for either encrypting their data or building a hybrid strategy for their data warehouse. Few challenges related to data warehousing on the cloud are described below.

  • Cost is one of the major challenges, as the migration process can be cost-intensive in case heavy investments are made in enhancing the existing infrastructure. However, these issues can be mitigated through a clear understanding of the upgrades needed for workloads & applications in the existing infrastructure. 
  • Moving voluminous data from the on-premise data center (DC) to the cloud brings challenges related to time-intensive ingestion process, cost, and bandwidth. For cost optimization, organizations must plan their migration journey with the upgrade cycle of their infrastructure. 
  • Identification of data that must be migrated to the cloud also remains a key concern. Security and compliance remain imperative areas to consider as they can hinder movement of the data to the cloud environment. In some cases, key parts of data cannot be migrated to the cloud and must be secured on-premise. 

Best Practices for Data Warehousing on the Cloud 

Following are some of the best practices that can be adhered by organizations for effectively moving their data warehouse to the cloud.

  • Improvement Along With Migration: It is necessary that organizations remediate the issues related to metadata, data modeling, and quality before migrating their data warehouse. This is