Why the shift from data platforms to the cloud makes sense

Why the shift from data platforms to the cloud makes sense
Data and context
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Data Management
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Author
Frederic Bauerfeind
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8 minutes

Analytics as a service with Microsoft Azure

Analytics as a service is revolutionizing the way companies process, analyse and use their data. By using Azure Synapse, they are driving their digital transformation decisively forward.

In today's data-driven world, understanding and utilizing data is critical for businesses. Processing, analyzing and using data to make informed decisions has evolved over time from the early days of data processing in the 1960s to today's cutting-edge cloud platforms. This evolution has enabled the rise of Analytics as a Service (AaaS), a solution that helps companies analyze their data by providing cutting-edge analytics tools and services in the cloud.

The beginning of data analytics

The history of data analysis began in the 1960s with the development of the first computer systems for processing large volumes of data. The first database systems, which were based on files and had a hierarchical structure, were also developed at this time. However, these systems were quite inflexible and required extensive programming skills to be used effectively.

In the 1980s, the introduction of relational database management systems (RDBMS) and the Structured Query Language (SQL) led to a fundamental change in data processing. RDBMS enabled more efficient and flexible data management through the use of tables and relationships between these tables. SQL enabled users to query and manipulate data from tables without the need for in-depth programming knowledge.

As data warehouses became more widespread in the 1990s, companies increasingly recognized the value of data analysis. Data warehouses finally allowed them to consolidate and analyze their data from various sources to identify trends and patterns. At the same time, business intelligence tools (BI tools) were developed that made it easy to visualize and analyze data.

This development continued in the 2000s, and new technologies and approaches emerged to meet the growing requirements for data processing and analysis. These included the introduction of business intelligence tools and new technologies such as NoSQL databases for processing enormous amounts of data.

The challenge

Although data warehouses and BI solutions offered many advantages, they also presented some challenges. One of the biggest challenges was scalability. Traditional data platforms often required costly investments in hardware and infrastructure to keep up with the growth in data volumes and data analysis requirements. In addition, these systems were often complex and time-consuming to manage and maintain, putting a strain on companies' IT resources.

Another problem was flexibility. Many traditional data platforms were not designed to handle the ever-growing number of data sources and data formats created by the emergence of new technologies and applications. Integrating new data sources into existing systems could be lengthy and costly, which impacted the efficiency and agility of organizations.

The shift to the cloud: analytics as a service

Faced with these challenges, companies began to look for alternative approaches to data analysis, and cloud technology offered the ideal solution. The cloud allows companies to host and manage their data and analytics tools in a centralized, scalable and flexible environment. This shift to the cloud led to the emergence of Analytics as a Service (AaaS), a solution that helps companies analyze their data by providing cutting-edge analytics tools and services in the cloud.

The shift of data platforms to the cloud and the introduction of analytics as a service have fundamentally changed the way companies use and analyze data. Compared to traditional approaches, AaaS solutions offer a variety of benefits and improvements that enable companies to work more agilely and efficiently.

What sets AaaS apart from traditional data platforms

One of the most notable changes is the introduction of managed interfaces, also known as connectors. These facilitate the integration of new data sources by enabling seamless connections between different data sources and analytics platforms. AaaS providers usually provide a wide range of pre-built connectors that allow companies to integrate their data sources easily and quickly without the need for extensive development work.

Another key difference between AaaS and traditional approaches is the use of no-code or low-code development environments. These offer a user-friendly interface that allows users to create and manage data analytics and data processes without in-depth programming knowledge. This significantly reduces the time required to develop and implement data analysis solutions and increases accessibility for employees from different departments.

In addition, AaaS solutions offer central platforms that promote collaboration within teams. These platforms allow team members to access, share and collaborate on data, analytics and visualizations. This improves communication and decision-making across the organization as employees can more easily access relevant information and share their insights with colleagues.

Another important aspect that differentiates AaaS from traditional approaches is the speed of development and implementation of data analytics solutions. Because the infrastructure and required resources are provided in the cloud, companies can launch and scale their analytics projects faster without having to wait for hardware to be purchased and set up. The provision of new functions and updates is also faster, as AaaS providers are continuously improving and expanding their platforms.

Overall, the transition from traditional data platforms to the cloud and the introduction of analytics as a service has revolutionized the way companies process, analyze and use their data. By using cloud technologies and modern analytics tools, companies can work more efficiently and with greater agility, leading to better decision-making and a competitive advantage.

How can companies make the leap to the cloud? Frederic Bauerfeind on the status quo in German companies and new opportunities.
What specific challenges do companies face with regard to traditional data platforms?

"On the one hand, traditional platforms often require considerable investment in hardware and infrastructure, which leads to significant financial expenditure. The need to keep pace with the growth in data volumes and data analysis requirements results in costly purchases that often take up a significant portion of IT budgets. On the other hand, traditional platforms are often not designed to deal flexibly with the constantly growing variety of data sources and data formats resulting from the use of new technologies and applications. This leads to lengthy and costly integration processes that impair the efficiency and agility of companies."‍

What advantages does AaaS in the cloud offer compared to traditional approaches?

"Analytics as a Service (AaaS) helps companies to use advanced analytics tools and services in the cloud without the need for extensive investment in hardware and infrastructure. This enables more agile data analysis, as companies can access modern analytics tools without having to worry about complex technical aspects. The benefits of AaaS also include improved integration of data sources, no-code/low-code development environments and centralized platforms to foster collaboration."‍

What advice can you give to companies that have not yet ventured into cloud and AaaS solutions?

"Organizations should definitely consider the shift from traditional data platforms to the cloud, especially using AaaS such as Microsoft Azure Synapse. Using AaaS in the cloud offers organizations the ability to be more agile, efficient and data-driven, leading to better decision making and a competitive advantage. The end-to-end functionality of solutions like Azure Synapse allows organizations to focus on data-driven decisions and strategies rather than having to deal intensively with technical aspects of data processing."

Analytics as a service with Microsoft Azure

Let's imagine the following: A global manufacturing company wants to analyze data from its SAP system to gain valuable insights into production efficiency, supply chain management and sales strategies. The company chooses Azure Synapse as the analytics platform to tackle this challenge. Here is a step-by-step description of the process, showing how the different components of Azure Synapse work.

1. data integration

To import the data from the SAP system into Azure Synapse, the company uses Azure Data Factory. Azure Data Factory provides a managed connector for SAP data sources that enables the seamless integration of SAP data into the Azure Synapse platform. The company creates a pipeline in Azure Data Factory that extracts, transforms and loads the SAP data into Azure Synapse.

2. data modeling

Once the SAP data has been imported into Azure Synapse, the company uses Azure Synapse Studio to prepare the data for analysis. Using the integrated low-code tools and functions of Azure Synapse Studio, the company creates a data model that maps the various SAP tables and relationships between them. This facilitates the analysis and visualization of the data in later steps.

3. data processing and analysis

Azure Synapse provides scalable, serverless data processing options that enable it to perform complex analytics on its SAP data. For example, the company can use Azure Synapse Analytics to calculate aggregated information on production performance, supply chain bottlenecks and sales trends. The extended integration with Azure Machine Learning also makes it possible to create predictive models to forecast future trends and challenges.

4. data visualization and reporting

Once the data has been analyzed, the company uses Power BI, which is integrated with Azure Synapse, to create meaningful visualizations and reports. Power BI offers a variety of user-friendly visualization options that allow SAP data to be presented in a clear and easy-to-understand way.

5. cooperation and decision-making

Azure Synapse's central platform facilitates collaboration within the company. Employees from different departments, including production, logistics and sales, can access the analysis results and visualizations to make informed decisions. The integration of Azure Synapse with other Microsoft tools, such as Microsoft Teams, also enables efficient communication and the sharing of insights within the company. In this scenario, Azure Synapse shows its strengths in the integration, analysis and visualization of SAP data, leading to valuable insights and improved decision-making.

Leveraging the diverse capabilities and components of Azure Synapse enables the company to optimize its business processes, use resources more efficiently and better manage emerging challenges. Thanks to the end-to-end functionality of Azure Synapse, the focus can be placed on data-driven decisions and strategies instead of having to keep an eye on technical aspects of data integration and data processing.

Wrap it up

Having explored the impressive capabilities of Analytics as a Service, and Azure Synapse in particular, in this article, we can't help but be intrigued by the power of innovation and collaboration that these technologies enable. Organizations now have the chance to embrace digital transformation with confidence and excitement, while leveraging their data in ways that were previously unimaginable.

The simplification of complex processes, the promotion of collaboration and the speed with which decisions can be made open up a world of new opportunities to succeed in the ever-changing business world. Ultimately, we see that Analytics as a Service and Azure Synapse are not just technical solutions, but also a promise for a better, more efficient and future-oriented working world.

This article first appeared in a similar form in issue 01/23 of data! All issues and articles of our biannual magazine can be found here:

https://www.taod.de/data-magazin

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