Data Warehousing Software

Data warehousing software refers to the collection of software tools and applications needed to create a data warehouse, often for the purposes of business intelligence.  Data warehousing software can encompass a wide range of applications and products but is most often associated with the database that will be used in the data warehouse and the tools that will be needed to integrate the warehouse with other in-house systems.  Data warehousing software is in essence the tool-set needed to build data warehouses.  Due to the complexity and often the costs associated with data warehousing software companies will often outsource the use of data warehousing software to resellers (VARs) or to third party suppliers who are experts in the use of data warehousing software.      

Can My  Business Use Data Warehousing Software?

While the short answer to that question is yes, the better question might be, should my business use data warehousing software?  It's important to distinguish from the benefit of having a data warehouse vs. the benefit of having the data warehousing software in-house that will be necessary to build out the system.  While there are a number of possible components associated with data warehousing software, two elements are critical and must be present - a core database that will be used to store data and a data integration tool that will integrate the data warehouse with other in-house systems.  From a basic management perspective, having familiarity with how your data warehouse operates is important, but as a business you may have to decide your need for data warehousing software based on whether your use of a data warehouse will be critical to the organization vs. just informational.

Risks Associated with Data Warehousing Software

In order to make a more informed decision on your need for data warehousing software, you should first understand the risks associated with bringing the necessary knowledge in-house to use data warehousing software.  The biggest difficulty most companies face when dealing with data warehousing software is lack of domain expertise.  More specifically, in order to use data warehousing software your business is going to need to build up the talent pool of individuals who have used data warehousing software in the past and can help you manage the development and maintenance of your data warehouse.  While accessing this type of talent is not difficult, having the company infrastructure and mindset to take advantage of expert data warehousing software developers can be very challenging.  In order to alleviate some of these risks your business can look at another option - outsourced data warehousing software developers - typically consultants - who can work with your business on an ad-hoc basis to develop your data warehouse.  With outsourced data warehousing software development you get the benefit of the experience of the consultants without the associated risk that comes with hiring, training and maintaining a dedicated workforce.

Benefits of In-House Data Warehousing Software Development

While there are risks associated with in-house data warehousing software development there are also benefits, especially when compared to outsourced data warehousing software development.  The primary benefit is the retention of domain knowledge.  As your business grows your needs for data warehousing software work will increase as well.  Having dedicated staff that can quickly and easily modify your data warehouse can be a significant help in ensuring that your data warehouse is updated.  Having to hire data warehousing software development consultants each time this type of work is needed can become very costly very quickly.  Beyond the long-term benefits of in-house data warehousing software development is also the benefit associated with knowledge transfer.  More specifically, over time you will find that it's always easier to translate business requirements into development requirements when dealing with in-house staff than with outside consultants.

Should You Use In-House or Outsourced Data Warehousing Software Development?

So which model is right for your business?  The answer may be both.  For many organizations outsourced data warehousing software development is an ideal model to start with.  It allows the company to benefit from employing a data warehouse without having to make the up-front investment in staff and training.  Over time your business can transition to in-house data warehouse software development and being to realize the long-term benefits of bringing the knowledge-base in-house.