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Data warehouses vs operational databases

By Micah Ondiwa, Senior Software Engineer 1 min read

Operational systems run the business; a warehouse brings their data together for analysis without slowing them down.

Most organisations have several systems — finance, sales, operations — each with its own database. Reporting across them is where a data warehouse helps.

Operational databases

Designed for day-to-day transactions: recording a sale, updating stock. Running heavy reports on them can slow down the systems staff rely on.

Data warehouses

Copy data from operational systems on a schedule, clean it and structure it for analysis. Reports and dashboards run against the warehouse.

When you need one

  • Reports combine data from several systems.
  • Historical trends matter beyond what source systems keep.
  • Reporting queries affect operational performance.

Start small

Begin with the data behind the most important reports, then expand. A modest database designed for reporting is often enough.

Govern definitions

The warehouse is where definitions — what counts as a customer, a sale, an active project — become consistent.

See our data engineering and analytics services.

About the author

Micah Ondiwa

Senior Software Engineer

Micah Ondiwa writes about software engineering — application architecture, APIs and integration, data and AI-assisted development, and reliable delivery.

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