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Data Warehouse

Also: enterprise data warehouse, EDW, analytical database, cloud data warehouse, data mart, star schema

A data warehouse is a database built for analysis rather than for running the business: it holds copies of records from many operational systems, integrated under one set of definitions, kept as history rather than overwritten, and arranged so that questions across years and departments run fast.

Assessment. A warehouse is a set of agreed definitions before it is a database, and projects fail when the database is procured first. Agreeing what a customer, an order and a month mean across the sales, finance and support systems is the substantive work; once that exists, loading the data into a cloud warehouse takes weeks. Teams that omit the agreement obtain a fast store of figures that departments dispute in every meeting.

Bill Inmon's definition from 1992 still holds in its four adjectives: subject-oriented (organised around customers, products and orders rather than around the applications that record them), integrated (one set of keys and definitions across sources), time-variant (history is kept, so that last year's figures can be re-run as they were) and non-volatile (loaded in batches, read many times, rarely changed in place). An operational database is built for the opposite job, thousands of small writes a second with the current state only, and the two workloads interfere, which is why the copy exists at all.

Ralph Kimball's dimensional model is how most warehouses are arranged, and the Kimball Group's technique list reads as the curriculum. A fact table holds measurements at a declared grain, one row per order line, say, with the numeric facts and keys to the dimensions; dimension tables hold the descriptive context, the customer, the product, the date, the store. Drawn out, the fact in the middle and the dimensions around it form a star schema, which analysts and BI tools read without a map. Conformed dimensions, the same customer table shared by the sales and the support facts, are what let a question cross departments; slowly changing dimensions decide what happens when a customer moves house, and the choice between overwriting and adding a row is the first design decision every warehouse course sets as an exercise.

ElementHoldsExample
Fact tableMeasurements at one grain, with foreign keysOne row per order line: quantity, net amount, keys to date, product, customer
Dimension tableDescriptive context for slicing and filteringProduct: name, category, brand, launch date
GrainWhat one fact row representsOrder line, not order; daily balance, not transaction
Conformed dimensionOne dimension shared by several factsThe same customer table under sales and support
Slowly changing dimensionThe rule for an attribute that changesKeep the old address as its own row so past orders stay where they were
  1. Select the business process to model, such as orders or support tickets.
  2. Declare the grain: what one row of the fact table represents.
  3. Identify the dimensions that describe each fact: date, customer, product, location.
  4. Identify the numeric facts to record at that grain.

The cloud changed the economics and not the model. Warehouses that charge by storage and query, with compute scaled on demand, removed the capacity planning that made the old appliances a capital project, and made ELT the usual loading pattern because transformation inside the warehouse became cheap. The data lake grew up beside it for raw and unstructured data, and the two have been converging into platforms that hold both. The modelling is unchanged, and so is the hard part: Microsoft's Power BI analyst exam weights the modelling of fact and dimension tables as heavily as the visuals, and the data engineering courses still begin with grain.

In practice

A retailer's finance team reports revenue from the accounting system, the e-commerce team from the shop platform, and the two differ every month by the refunds, the gift cards and the time zone. The warehouse project spends its first six weeks in meetings writing one definition of net revenue, one calendar and one customer key; the loading takes a fortnight. The dashboards that follow agree with each other, which is the principal return on the investment, and the discussion moves from the figures to the decisions.

Often confused with

Data Lake
A data lake stores raw files in whatever shape they arrived, for data scientists and pipelines to read; a warehouse stores cleaned, modelled tables with agreed definitions, for analysts and reports. Most organisations now run both, and the lake usually feeds the warehouse.
Data Engineering
Data engineering is the discipline that builds and fills the warehouse; the warehouse is one of its products. Engineers also build the pipelines, the lake and the serving layer around it.
SQL
SQL is the language used to load, model and query a warehouse; the warehouse is the database and the design. The same SQL on an operational database answers different questions more slowly.

Key takeaways

  • →Subject-oriented, integrated, time-variant, non-volatile: a copy built for analysis, with history kept.
  • →Facts at a declared grain, dimensions for context, conformed across departments: the star schema analysts read without a map.
  • →The definitions are the project; the database is the simpler part, and the cloud made it simpler still.

Related concepts

  • The pipeline fills the warehouse; ELT transforms inside it.

  • RelatedSQL

    The language the warehouse is loaded, modelled and queried in.

  • RelatedData Lake

    Raw files beside modelled tables; the lake usually feeds the warehouse.

  • The warehouse holds the definitions the BI model reads.

  • The design of the tables inside the warehouse.

Where this concept sits in the field

Certifications that test this

Vendor exams whose syllabus covers this concept: facts, cost and a preparation path on each page.

More courses from these categories

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FAQ

Does a small business need a data warehouse?
It needs the definitions as soon as two systems report the same number differently, which happens at the second system. The database can be a modest cloud warehouse or a schema in the existing database at first; the objective is one agreed model that reports read from.
What is a data mart?
A warehouse for one department or subject, either carved from the enterprise warehouse or built on its own. Kimball's approach builds the enterprise warehouse as a set of conformed marts; the term is used loosely for any smaller analytical store.
Is the lakehouse replacing the warehouse?
It is merging the two. Platforms now run warehouse-style tables over lake storage, so that the raw files and the modelled tables live in one place. The modelling, the grain and the definitions still have to be done; the storage decision got simpler.

Sources

The primary text this definition rests on. Read it before relying on this one.

Last reviewed 3 October 2026 · Getting Digital