Amazon Redshift to create waves in data warehousing: IT analysts

by CXOtoday News Desk    Jul 22, 2013

data warehosuing

The word on the street is that Amazon Web Services (AWS) with its new solution for data warehousing in the cloud, Amazon redshift is creating quite a stir among large and small IT organizations. IT analysts say that this solution can change data warehousing for both big and small companies.

Traditionally data warehousing is expensive, time-consuming and inflexible but Amazon redshift plans to change this concept by providing a big shift in data warehousing and business intelligence to the cloud at only $ 1000 terabytes per year.

So far there have been conflicting opinions from IT analysts regarding this issue. Some analysts are of the opinion that Redshift may not be the right shift for large companies with heavy investments in on-premises data warehousing systems, while others are saying its easier for smaller companies to adopt the solution since small companies build their entire infrastructure on not just data warehousing but also in the Amazon cloud. 

According to IT analyst  Noel Yuhanna at Forrester Research Inc, Redshift is going to be a big trend as lots of Fortune 1000 companies are interested in the solution.

“I’m sure Teradata and Oracle and Microsoft and the IBMs of the world are going to start offering more extensive data warehouse offerings in the public cloud in the coming years,” Yuhanna said. “They’re going to follow suit, because Amazon already has a commendable cloud offering.”

Some advantages of Amazon Redshift is its flexibility to run on social, mobile and other analytics without relying on IT to build and manage infrastructure. This will provide more freedom to business users. Big companies interested in the solution are likely to create hybrid data warehousing platforms. Here, some BI operations may reside on-premises , while others will head to the cloud.

However, Amazon Redshift has some drawbacks. The main disadvantage is the security issue. Another issue is the network latency issue. But this can be managed by ensuring BI applications run on cloud as well, resulting in all data and the applications using the data all reside in the Amazon data center.

But the advantages certainly outweigh the drawbacks and companies need to invest more money to prevent security issues. According to Yuhanna, Amazon has additional network connectivity into their data center but in order to make use of the solution, companies need to pay the price for it.