A data warehouse is a relational database that is designed for query and business analysis rather than for transaction processing.It contains historical data derived from transaction data. This historical data is used by the business analysts to understand about the business in detail.
A data warehouse should have the following characteristics:
- Subject oriented:
A data warehouse helps in analyzing the data. For example, to know about a company's sales, a data warehouse needs to build on sales data. Using this data warehouse we can find the last year sales. This ability to define a data warehouse by subject (sales) makes it a subject oriented.
- Integrated:
Bringing data from different sources and putting them in to a consistent format. This includes resolving the units of measures, naming conflicts etc.
- Non volatile:
Once the data enters into the data warehouse, the data should not be updated.
- Time variant:
To analyze the business, analysts need large amounts of data. So, the data warehouse should contain historical data.