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Nucleus Research Analyzes Adoption of Modern Data Warehouse Technology in New Value Matrix

Organizations are increasingly embracing large-scale cloud transformations to become more agile, resilient, and data-driven. At the same time, adoption of modern data warehouse technology has accelerated in tandem as companies look to scale up data ingest and analytics. As 2022 progresses, Nucleus Research has released its Data Warehouse Value Matrix, predicting an increase in customers prioritizing a solution’s respective scalability, serverless capabilities, multi-region and multi-cloud completeness, and performance optimization for big-data and highly parallel tasks when selecting a data warehouse solution.

Last month, Nucleus identified several key trends to watch in the database and data warehousing market:

  • Elastic data warehousing will spur a larger move towards serverless and usage- based pricing models;
  • Increasing vendor investment in distributed cloud storage and processing;
  • The mass adoption of real-time and in-database analytics;
  • Accelerated development of artificial intelligence and self-service analytics with data warehouses as a breeding ground.

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These trends play a major part in customer and vendor interactions going forward, and addressing pain points that coincide with industry growth, per Nucleus Research Analyst, Alexander Wurm. Though 2022 has only just begun, vendors are increasingly investing in distributed technologies to improve processing efficiency and deliver more performant analytic capabilities. And although this rapid uptick in adoption already yields customer reports of value, this shift to mass scale has also pointed out some challenges that need to be addressed for customers to maximize the value and success of their database and data warehouse projects.

For example, many vendors experienced challenges scaling their services while ensuring data security and access to data for value-add analysis. To address these challenges, vendors continue to develop new networking practices, such as multi-region and multi-cloud approaches to reduce the potential severity of cloud outages. Vendors also deliver in-database analytic capabilities to minimize latency for time sensitive tasks by avoiding extract, transform, and load (ETL) actions. To that end, Nucleus’s 2022 Data Warehouse Value Matrix offers a breakdown of data warehouse industry leaders, experts, facilitators, and core providers for businesses looking to adopt a data warehouse solution:

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  • Leaders: Amazon Redshift, Oracle Autonomous Data Warehouse, Microsoft Azure Synapse Analytics, and Teradata Vantage.
  • Experts: Yellowbrick Data, IBM Db2 Warehouse, and Databricks lakehouse.
  • Facilitators: Snowflake Data Cloud, SAP Data Warehouse Cloud, and Google BigQuery.
  • Core Providers: Panoply Cloud Data Platform and Cloudera Data Platform.

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“Data warehouses have advanced from complex and inflexible hardware specialized for infrequent batched processing to highly managed, interconnected, and scalable systems,” said Wurm. “As development of fully-managed and serverless offerings accelerates, Nucleus expects customers to significantly limit the need for IT intervention and reduce expenses related to the over-provisioning of computation resources.”

To create the 2022 Data Warehouse Value Matrix, vendors are positioned according to the relative usability and functionality of their respective solutions, as well as the value that customers realized from each product’s capabilities and presented as a snapshot of the current market rather than an empirical ranking of vendors.

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