What is Data Warehouse Architecture? Types and Advantages

Data Warehouse Architecture

Before you get into the details of architecture, it is important to understand what a data warehouse does. Data warehouses are unique because they can store both archived and live data in one place. The same data can be accessed by both business operations or completed business processes. It is also simply existing data that is stored in one location. Data warehouses are a repository for data that has been extracted from many sources, including data provided by users, manufacturers, and third-party vendors. To make it easier and more accessible, it has been organized into tables and other databases. While the term “data warehouse”, may conjure images of huge, complex repositories with large storage requirements, modern data warehouses have been optimized for speed and accessibility to make them accessible to businesses of all sizes. This article will cover everything you need to know when designing a data warehouse architecture.

We discuss why data warehouses are important and how they can work; we also explain the main types of architectures that are available; and we point out factors to consider when choosing between different options.

What is Data Warehouse Architecture?

A single hardware layer is the basis of the single-tier Data Warehouse architecture. This layer is made up of one hardware layer. There are three ways to create a data warehouse layer: single-tier, double-tier, or three-tier.

Single-tier architecture: This structure is designed to keep data space as minimal as possible. This structure is seldom used in real life.

Two-tier architecture: A data warehouse is the collection of data in an easy-to-convert and load into a database. There are many ways to implement data warehouses, so it is important that you choose the one that best suits your business. Scalability is the most important aspect to consider. A data warehouse is a good option if you need to store large amounts of data in a limited space.

Three-Tier Data Warehouse Architecture: The Top Tier is comprised of the Top, Middle, and Bottom Tiers of this Architecture of Data Warehouse.

  • The Datawarehouse’s bottom tier is composed of relational database systems. This database system usually contains a relational system. Back-end tools transform, clean, and load this layer of data.
  • ROLAP- or MOLAP-based, middle-tier OLAP servers are available. It serves as a middle-tier OLAP server and abstracts OLAP from end users. Middle-tier OLAP servers are data warehouses that allow end-user interaction with the database.
  • Because it is the first contact with data, the front-end client layer at the top-tier of the top-tier has great importance. This is the place where the data is presented to the user and the data is used for decision making. The Front-end client layer at the top tier must have access to real-time data, and be able quickly to process it. Top-tier must also be able to understand and use the data. Top-tier data will typically be in a relational database format. However, it can also be a file or a stream. Top-tier data should be well-structured and validated. It must also be formatted in a way that makes it easier to perform data profiling or analytics.

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Data Warehouse Architecture Properties

A data warehouse must comply with the following architectural features:

  • Sometimes we want to keep transactional and analytical processing as far as possible.
    Scalability should be shown by the ability to process large amounts of data at high speeds and stream it to various destinations in different formats. The data stream must be processed and presented in the correct format at the appropriate time and place while minimizing the impact on existing infrastructure. Data stream must be managed and protected with the greatest level of integrity and confidentiality. The business requirements will determine the size and rate of data streams. It is also important to make the most of available software and hardware resources.
  • Architecture should be flexible. New functionality can be added to existing services by expanding the APIs. An insurance company might offer a customized quote feature to customers through its customer service platform. By extending an existing service’s APIs, new technologies such as artificial intelligence can be integrated into it. An insurance company might offer a personalized quote to customers by extending their customer service platform. The core services should incorporate new technologies such as artificial intelligence. They can also be extended to support new business functions such as customer relations management.
  • Data security is an important aspect of the data governance strategy. Data security controls at the source include data access controls and encryption. Data security measures at the perimeter include monitoring data access and establishing data access controls.
    It should be easy to use and the users should be able to work efficiently with the data. Data Warehouse management should not be difficult to comprehend and implement. Data Warehouse management shouldn’t be difficult or complicated for anyone. It should be easy to use and understand.

Different Types of Data Warehouse Architecture

There are three types of data warehouse architectures.

Single-Tier Architecture

Single-tier architectures cannot be implemented in real-time systems. They can be used for real-time and batch processing. First, the data is transferred to a single-tier architecture. There it is converted into a format suitable for real-time processing. This architecture is called “single thread”. The data is then transferred to a real-time system. Single-tier architectures are the best way to process operational data at present. Single-tier architectures cannot be implemented in real-time systems.

Before the data can be accepted by the analysis engine, the data storage and processing middleware must be capable of determining the quality of the data. These steps can be skipped and the middleware could be hacked by malicious or faulty codes. Consider a credit score calculation. A malicious hacker could modify your credit score and steal valuable data if the middleware is compromised.

Two-Tier Architecture

A two-tier data warehouse separates an analytical process from a business process. This gives you greater control and efficiency. Two-tier systems allow for better data analysis and enable more informed decisions.

A two-layered architecture is a four-stage data flow that separates physical sources from data warehouses. It uses a two-layered architecture.

  • To ensure the integrity of the data warehouse, it is crucial to know the source of the data. Data warehouse integrity must be maintained. Data integrity refers to the accuracy or truthfulness of data in a database record. Data warehouses are systems that store information in a database for easy search and analysis.
  • Data staging is an important step in the ETL process. It can dramatically reduce the time required to extract, transform and load (ETL), large data sets. ETL tools are able to extract data from different storage sources, transform it with corporate-specific functions, then load the data into a warehouse. ETL functions, which are data warehouse functions, can be used to monitor the system and provision new data. They also allow you to make decisions based on the data. A data warehouse can perform functions such as ETL, which are essential for data warehouse operations.
  • The data warehouse metadata is an essential component. It’s the data that helps a data warehouse administrator determine which data should be deleted, which data should be retained, and which data can be used in future reports. Data warehouse consistency is important. Data warehouse administrators need to decide which data should go up or down when new data arrives. And which data should remain unchanged? Application developers and users need to be cautious about the tables and report that they create in a data warehouse.
  • This level also requires data profiling, which helps to validate data integrity and present standards. Advanced analytics are also available, including real-time and batch reports, data profiling, visualizations, rating functions, and data profiling. This isn’t just a data warehouse, but a live platform that analyzes large amounts of data. It is crucial to monitor data changes, scalability and system performance.

Three-Tier Architecture

The source layer, reconciled layer, and data warehouse layer all use a three-tier structure. The reconciliation layer is located between the data warehouse and source data. The problem with the reconciled layer lies in the fact that it cannot be used to ignore data problems before reconciling them. The reconciler’s main concern should be data integrity, accuracy, and consistency. As an example, let’s say that the data warehouse holds a number of elements related to company information that is frequently updated, such as order books.

A web-based tool that refreshes corporate applications and extracts new data from the warehouse is the best option. This architecture is suitable for systems that have a long life cycle. To ensure no incorrect data is entered, data are reviewed and analyzed every time there is a data change. This architecture is also called data-driven architecture. This architecture is most commonly used for large-scale systems. This structure doesn’t occupy any additional space.

Also read: What is Security Architecture A Full Guide?

Advantages of Data Warehouse Architecture

  • The data mart is a collection of data model definitions. It captures the data model at a high level and provides a common access strategy for the data warehouse. The data mart is a shared data access strategy that allows data warehouses to maintain consistency and governance. It also provides one place for managing diverse data sources. The data mart is an essential building block of the data warehouse. It allows you to standardize data access and create a common strategy of data integration. The data mart doesn’t create data, it just provides the strategy for data access.
  • Change begins with identifying the issues and pain points in your current system and then creating a plan to fix them using the new system. The system is then tested to ensure that it is functioning as intended. Once the system has been deemed fit for purpose the change process can begin. First, ensure that existing stakeholders are comfortable using the new system. Next, an assessment must be done to validate the change process. This is the way the model is deemed most suitable for business transformation.
  • Data warehouses are the reason that over 90% of all data businesses have is stored in this format. Data warehouses are large collections of data that are stored in a database and used to make business decisions. Data warehouses can be used to support ETL processes and to deliver data to CRM systems so business users can begin to look at real data and make informed decisions.
  • A data warehouse allows you to use ETL (extract transform and load) and management processes to connect and process your data. A data warehouse is simply a central repository for your data that can be accessed from any one of your analytics platforms.
  • With the advent of NoSQL databases like MongoDB and GARIA, data warehouses have seen an increase in speed and scale. Data warehouse technology, when used in conjunction with a BI platform allows for real-time analytics. This allows for streamlining decision-making, reducing lead and invoice inquiries, as well as increased profitability.

Disadvantages of Data Warehouse Architecture

  • Maintaining a data warehouse is an important task that must be done correctly. To maintain a data warehouse, you need to gather data, process it and analyze it. Data collection, processing, and analysis must be completed within a specified time frame. Maintaining a data warehouse takes a lot of work, which may not justify the investment. A data warehouse is a crucial component of any enterprise data management system.
  • ETL tools can be used to automate data extraction and speed up the process. Automated extraction doesn’t guarantee data quality. It is better to perform both manual and manually-enforced tasks together. Once the data have been validated, and the cleanup process is automated, it’s ready to be inhaled into the warehouse.
  • This could lead to incorrect property valuation, underestimating sales, or overestimating expenses. Any organization that processes large quantities of data needs to integrate its data. All data must be integrated into the warehouse. Data mining and data trapping are two options to achieve this.
  • Most of the data will need to be stored in a warehouse and then analyzed with data profiling tools. To support large amounts of data analysis and storage in the most cost-effective way, the warehouse infrastructure is required. The warehouse will serve as the central repository for data and be used to analyze all data.
  • An organization can get better results if it uses data warehouse tools in a structured and disciplined manner. The data source is an important aspect of any data warehouse’s architecture. Data integration becomes even more crucial if the data is from multiple sources, such as authorized partners or sensors. First, an organization should decide which data sources it would like to work with. Then, work on integrating these data sources.


A data warehouse architecture is a collection of interconnected databases that store, organize, and analyze data. A data warehouse is a group of databases that organize and store data in a structured way. The three major components of a data warehouse architecture are a data warehouse and an analytical framework. An integration layer is also included. The data warehouse is the main repository of all data. The software that processes and organizes the data into tables is called the analytical framework.

The software that links the databases together and makes them available to other applications is called the integration layer. Because it optimizes the overall system’s performance, a data warehouse architecture is essential to any IT infrastructure. A data warehouse makes it easy to access, find and analyze data by storing it all in one location. A well-designed data warehouse architecture will help reduce storage space, which can lead to lower costs. A well-designed data warehouse architecture will help reduce costs and the need for redundant storage space.

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