I'm back with another article. This time, it's all about the first step before you can start your data analytics journey: Storage.
You might have tons of data you want to combine and analyze, but where should you keep it?
So, let's explore your options!
Let's break down the basics of storing your business data, explore different storage options, and introduce you to ETL (Extract, Transform, Load) in a fun way!
Types of Data Storage
Let's start by locating different types of data storage and discussing their pros and cons. One may stand out as the best option for you.
On-Premises Storage
Cloud Storage
Hybrid Storage
Let's explore each type and its advantages and disadvantages.
On-premises storage means keeping your data on local servers right in your office or business premises. Basically, you own, maintain, and control your hardware and software 100%
Pros:
Full Control: You're the boss of your data and hardware.
Security: Since it's on-site, you can directly manage who gets access.
Customization: You can set up the system just the way you like it.
Cons:
High Costs: Buying and maintaining hardware can be pricey.
Limited Scalability: Expanding your storage capacity takes time and money. You have to add another disk fiscally to get more Storage.
Requires IT Skills: You'll need tech-savvy people to manage and troubleshoot if/when something goes wrong.
Let's give you an example:
Think of a business dependent on data that needs to be accessible even if your internet service might be down. Maybe you work with huge files and would prefer to be unrestricted by your internet speed. You may like to keep records of the internet that are only accessible through your own secure local network. Then, on-premise Storage might be something for you.
One super important thing to remember with on-premise Storage is that you also control your backups. No matter the data, I always recommend storing backups, which should not be stored at the same physical location. You still want to keep your data if an accident happens, like a fire or flood.
Cloud Storage stores your data on remote servers managed by companies like Amazon Web Services (AWS), Google Cloud, or Microsoft Azure. They manage all the hardware and fix your problems.
Pros:
Scalable: You can easily and quickly increase Storage as your business grows. It's done with a click of a button.
Cost-Effective: Pay only for what you use, no big upfront costs. No need to buy any hardware.
Accessible Anywhere: Get to your data from anywhere with an internet connection.
Cons:
Internet Reliant: If your internet goes down, so does your data access.
Security Concerns: You'll need strong security measures to protect your data.
Less Control: You're trusting a third party with your data and your problems.
Let's give you an example: You run a business where access to information is necessary, and you have an internet connection.
Then, you can store your data in cloud storage, where your cloud service provider will ensure it's available online when you need it. Most service providers can store your information on multiple servers in different locations, ensuring your data is available even during a natural disaster.
Hybrid Storage combines on-premises and cloud storage, giving you the best of both worlds if you wish.
Pros:
Flexible: Store sensitive data on-site and less critical data in the cloud.
Cost Management: Balance costs by choosing the proper Storage for different data.
Improved Security and Accessibility: Keep sensitive data secure on-premises while benefiting from the cloud's accessibility.
Cons:
Complex Setup: It's trickier to manage and coordinate.
Requires Strong Management: You'll need good data management practices to keep everything running smoothly.
Let's give you an example: You run a local restaurant chain and like to store customer loyalty program data on-site while using cloud storage to manage online reservations. Make sure you keep your information safe and accessible at your office while still quickly and easily accessing reservations in any of the restaurant locations.
Understanding ETL (Extract, Transform, Load)
ETL stands for Extract, Transform, Load, a process for preparing data for analysis. I included this to help you understand the next step, which is preparing data so you can use it.
Extract: Getting data from sources like databases, CRM systems, accounting applications, Google Analytics, or cloud services.
Transform: Clean and format the data so it's consistent and useful. It's all about structuring the information to benefit your business and its goals.
Load: Move the "cleaned data" into a central place, like a data warehouse, for easy analysis, like your on-premise or cloud storage.
Let's give you an example: Imagine a retail chain. They will extract sales data from each store (Extract), organize it to remove duplicates and errors (Transform), and then load it into a central database to see overall sales trends (Load).
What to Consider When Choosing Data Storage
Data Volume and Growth: How much data do you have now, and how much will you need in the future?
Security Needs: How sensitive is your data? Do you need to meet any regulations?
Access Requirements: Who needs access to the data, and from where?
Budget: What can you afford now, and what will be your ongoing costs?
IT Resources: Do you have the tech skills to manage your chosen Storage?
Conclusion
Choosing your data storage solution is like picking the right tool for the job. It's all about understanding your needs and the pros and cons.
Whether you choose an on-premises, cloud, or hybrid solution, the most important thing is to ensure your data is secure, accessible, and manageable.
And don't forget ETL—it's the magic that turns raw data into valuable insights.
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Best Regards.
Alexander Nordvall Northwall Consulting
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