New Research Reveals Growing Investment in Data Warehousing and the Limitations of Current and New “Big Data” Technologies
Mar 30, 2015
- 70 percent are increasing their investments in data warehousing
- 96 percent do not see Hadoop as a replacement to their existing data warehouse
- Almost one third are already using cloud data warehouses
SAN MATEO, Calif. – March 30, 2015 – Snowflake Computing, the cloud data warehousing company, announced today the results of an independent, national survey of more than 315 technology and analytics professionals with responsibility for corporate data initiatives. Conducted by Dimensional Research, the goal of the research was to understand the state of the data warehouse and Big Data initiatives – including experiences, challenges and trends in data warehousing and data analytics.
“The State of the Data Warehouse” research findings indicate that data warehousing is still viewed as a critical business component, in spite of its challenges. An overwhelming majority of data professionals characterize their data warehouse as very important for business operations (72 percent), and expect an increasing level of investment in data warehousing at their organization (70 percent). However, 97 percent of respondents stated major challenges when it comes to data warehousing.
Despite these challenges, Hadoop is not viewed as a practical replacement for the data warehouse. A majority of data professionals (64 percent) would not consider Hadoop as a possible replacement for any portion of their data warehouse. In fact, 91 percent expressed concerns about using Hadoop, with 71 percent citing lack of specialized expertise as a key concern.
In addition, interest in Big Data is high but still in its early stages. The study showed that while 70 percent of respondents were interested in a Big Data initiative, only five percent of respondents actually had a fully deployed initiative and just 11 percent are in pilot.
“Hype has created confusion about what is really happening with Big Data initiatives,” said Diane Hagglund, principal at Dimensional Research. “Although interest in Big Data is high, this study found that most organizations still have not implemented Big Data initiatives. Further, this study found that Big Data initiatives and Hadoop have not diminished the importance of the data warehouse–data warehousing remains critically important and will not be replaced by Hadoop.”
Summary of key survey findings:
Data warehouses are still critically important
- 99 percent of respondents say their data warehouse is important to business operations
- 70 percent are increasing their investment in data warehousing
- 97 percent face challenges with their current data warehousing solutions
Big Data initiatives and Hadoop have not replaced the data warehouse
- 91 percent have considered a Big Data investment
- Yet only 11 percent have a pilot in place, and only five percent have fully deployed their Big Data initiative
- 96 percent say Hadoop will not replace their existing data warehouse
- Just 12 percent have easy access to Hadoop expertise (by contrast, 93 percent have easy access to SQL expertise)
Cloud-based data warehousing is desirable, especially for data already in the cloud
- 93 percent see value in the potential benefits of cloud data warehousing
- 32 percent have a cloud-based data warehouse today
- 79 percent of those with data in the cloud bring it into the data warehouse, although only nine percent bring all data in
“Although the Big Data buzz has led to speculation about the future of data warehousing, this survey confirms that the ‘death of the data warehouse’ has been greatly exaggerated,” said Bob Muglia, CEO of Snowflake Computing. “The data warehouse remains critically important, but as this survey shows the market has a critical need for a modern data warehouse, one designed to take advantage of the cloud and eliminate the complexity of current solutions, without requiring scarce new skills and expertise.”
To access the full Dimensional Research survey report on “The State of the Data Warehouse,” go to: https://info.snowflake.net/StateOfTheDataWarehouse.html
Survey Methodology and Participant Demographics
In February 2015, technology and analytics stakeholders with responsibility for corporate data initiatives were invited to participate in an online survey on the topic of data analytics and warehousing. Participants were asked a series of questions about their role in data initiatives, as well as specific questions on experiences, challenges and trends with data warehousing, Big Data, Hadoop and cloud computing. A total of 319 individuals with professional responsibility for data initiatives completed the survey. Participants represented a wide range of geographies, company sizes, role and vertical industries. All participants worked at companies that used data warehousing.
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About Dimensional Research
Dimensional Research® provides practical market research to help technology companies make their customers more successful. Researchers are experts in the people, processes and technology of corporate IT and understand how corporate IT organizations operate. We partner with our clients to deliver actionable information that reduces risks, increases customer satisfaction and grows the business. For more information, visit www.dimensionalresearch.com.
Snowflake Computing, the cloud data warehousing company, was founded in 2012 by a team of experts who hold over 120 patents in the fields of database architecture, data warehouses, query optimization and parallelization. Snowflake was created with the vision to reinvent the data warehouse, bringing together all users, all data and all workloads in a single repository. The company is backed by leading investors including Redpoint Ventures, Sutter Hill Ventures and Wing Ventures. Snowflake is headquartered in Silicon Valley and can be found online at www.snowflake.com.
Kulesa Faul for Snowflake Computing