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Does Your Data Warehouse Belong in the Azure Cloud? Here are Some Things to Consider

It’s no secret: Microsoft Azure is hot right now. This is demonstrated by their 97% growth in Q2 2017. With more organizations migrating their data infrastructure to the cloud every day, some companies are asking themselves: does my data warehouse belong in Azure? While there’s no simple answer to this question, there are some ways in which you can begin to assess your current data infrastructure’s suitability for an Azure Cloud migration.

The Cost Factor

The team at Optimus has found cost to be one of, if not the top driver for cloud adoption. There are several factors businesses should consider where cost in the cloud is concerned:

  • If your business is cyclical (i.e. retail with high volume throughout the holiday season), the cloud pay-as-you-go model makes strong financial sense. Cyclical companies can burst to the cloud when they need to, saving them from buying new servers that may only be required a few weeks per year. Conversely, it may not be cost effective to move workloads that are required to run at a stable level 24/7/365 to the cloud, especially if they are running on equipment that does not need upgrading in the foreseeable future.
  • At Optimus, we have found that many organizations prefer opex over capex. Opex tends to be easier to manage over the long term, especially for fast-growing businesses where a significant capex could stall growth. The more a business transitions to the Azure pay-as-you-go model, the more they shift their data warehouse costs from a capex to an opex.
  • The apportioning of data costs across departments is significantly simplified in Azure. Pricing for individual workloads is made transparent, and data usage is easily tracked.

When considering leveraging Azure for your data warehouse, it is important to remember that a cloud migration is not an all-or-nothing endeavour. Every business will have certain workloads that make financial sense in the cloud and certain workloads that should remain on-premises. Perform an accurate assessment of your current data infrastructure to determine your cloud suitability.

What are Your Data Governance Requirements?

Meeting data governance and regulatory requirements is at the forefront of the mind of anyone considering an Azure migration, and for good reason. Moving an on-premises legacy data infrastructure to the cloud is a difficult landscape to navigate.

Your industry may determine your suitability for an Azure Cloud data warehouse migration. Certain sectors, such as financial and healthcare, have strict data governance laws to comply with. You need to make sure your – and your client’s – data remains within certain jurisdictions, something that may prove challenging and will influence your choice of what data to move to Azure.

Do you need to retain control over user authentication? If yes, you’ll need to look at the feasibility of this with various applications. Your service provider will be able to assess this with you and make the right recommendations.

Latency: Still a Consideration?

The short answer is yes. In particular instances where the speed of data transaction is mission-critical, an internal data warehouse may be required. This is common in the financial industry, where trading companies are under increasing pressure to host their servers physically close to a stock exchange’s computers. In an industry where transactions are conducted in microseconds, speed is priority number one.

While Azure has made significant improvements to latency times, the fact remains that the closer two computers are to each other, the faster they can communicate. At Optimus, we have seen companies with these types of operational concerns benefit from leaving some of their data on-premises. However, because the amount of data required to perform at a high level is typically small, leveraging the public cloud is still a viable option for most organizations.

There are many factors to keep in mind when considering a data warehouse migration to Azure. To learn more, check out our e-Book, Building a Modern Data Warehouse on Azure.