What is data lakehouse?
A data lakehouse is a data management architecture that combines the best characteristics of data lakes and data warehouses. It offers the flexibility, cost-efficiency, and scalability of data lakes while providing the data management, ACID transactions, and structure features of data warehouses.

This enables business intelligence (BI) and machine learning (ML) on all types of data, including structured, unstructured, and semi-structured data. By merging the capabilities of both systems into a single platform, data teams can access and use data more efficiently without needing to switch between multiple systems.
Data lakehouse architecture
A data lakehouse architecture combines the best features of data lakes and data warehouses into a single platform. It typically consists of five layers:
- Ingestion layer: responsible for ingesting large volumes of structured, unstructured, and semi-structured data from various sources into the data lakehouse
- Storage layer: leverages low-cost cloud object storage to store all types of data, providing the flexibility and scalability of data lakes
- Metadata layer: manages the metadata, such as schema information, data lineage, and data provenance, enabling better organization and governance of the data
- API layer: provides a unified interface for accessing and processing the data, supporting various query languages, such as SQL, and tools, such as Python and notebooks
- Consumption layer: enables users to perform analytics, machine learning, and business intelligence tasks on the data, providing a single end-to-end view of the data
By taking a layered approach to unify the capabilities of data lakes and data warehouses, data lakehouses allow organizations to access and use data more efficiently without needing to switch between multiple systems.
Data lakehouse features
Data lakehouses enable structure and schema like those used in a data warehouse to be applied to the unstructured data of the type typically stored in a data lake. This means that data users can access the information more rapidly.
In comparison to a data warehouse, a data lakehouse is inexpensive to scale because integrating new data sources is a more automated process. Queries can come from anywhere using any tool and are not limited to applications that can only handle structured data.
Indeed, many of the standout features of data lakehouses exist to bridge the gap between a data lake and a data warehouse. Some of these key features include:
Metadata layers
These layers help in organizing and managing data, making it easier to locate and use
High-performance SQL execution
This allows for efficient querying and data retrieval and optimized access for both data science and machine learning tools
Support for diverse data types
Data lakehouses can handle structured, semi-structured, and unstructured data types, enabling a broad range of data types and applications to be stored, accessed, refined, and analyse
Concurrent read and write
Multiple users can concurrently read and write ACID-compliant transactions without compromising data integrity
Reduced data movement
By combining the best features of data warehouses and data lakes, data lakehouses can reduce data movement and redundancy, leading to more efficient use of resources
Support for advanced analytics
Data lakehouses are well-suited for advanced analytics and machine learning because they can handle large amounts of data from multiple sources
These features reduce the need to access multiple systems, ensuring that teams have the most complete and up-to-date data available for data science, machine learning, and business analytics projects.
Finally, a data lakehouse offers more robust data governance than traditional data lakes or warehouses, ensuring data quality and compliance.
Benefits of data lakehouses
There are broad benefits associated with these features. Simplicity, flexibility, and low cost are one as data lakehouses implement similar data structures and data management features to those in a data warehouse, directly on the kind of low-cost storage used for data lakes.
A data lakehouse offers the structured features and capabilities of data warehouses while maintaining the adaptability of data lakes. This hybrid model is also notably more cost-effective than conventional data warehousing solutions.
Organizations are increasingly turning to the data lakehouse model to overcome the constraints inherent in traditional data warehouses and data lakes. This approach provides a balanced solution, combining the strengths of both data storage and management systems.
Flexibility is another key benefit. Data lakehouses enable the processing of diverse data types, including structured, semi-structured, and unstructured data. This versatility supports a wide array of applications, ranging from standard data analytics and business intelligence to more advanced uses in machine learning, artificial intelligence, and real-time data streaming.
Additionally, data lakehouses allow for customization using popular programming languages such as Python and R, further enhancing their appeal to organizations.
Data lakehouse examples
Data lakehouses are being adopted across various industries for many use cases, due to their ability to combine the best features of data lakes and data warehouses. Here are some examples of data lakehouses in use:
Healthcare
Data lakehouses can store and analyse data from electronic health records, medical devices, and other sources, helping healthcare organizations improve patient care and population health.
Finance
Similarly, lakehouses can be used to store and analyse diverse data from financial transactions, risk management systems, and other sources, helping financial services organizations make better investment and risk management decisions.
Data analytics modernization
Data lakehouses can be used to modernize existing data systems, improving their performance, management, and cost-effectiveness. This includes transitioning from on-premises data infrastructure to the cloud, offloading data warehouses, and enabling new data capabilities like data virtualization and customer-facing data applications.
Real-time data processing
Lakehouses supports both batch and real-time data processing, allowing organizations to analyse data as it is generated. This enables real-time reporting and analysis, eliminating the need for separate systems dedicated to serving real-time data applications.
Core to this broad set of applications is the fact that data lakehouses can handle structured, semi-structured, and unstructured data types, allowing organizations to store, access, refine, and analyse a wide range of data types and applications, such as IoT data, text, images, audio, video, system logs, and relational data.
Data lakehouses are inexpensive to scale because integrating new data sources is automated. They don't have to be manually fit with the organization's data formats and schema, which saves time and resources.
Data warehouse vs. data lake vs. data lakehouse
Each of these architectures offers distinct features and serves different needs in the realm of data processing and analytics. Understanding their nuances is essential for businesses aiming to leverage their data effectively.
Data Warehouses
A data warehouse is a structured repository of data, meticulously organized and optimized for querying and reporting. It's the bedrock of business intelligence, providing a centralized platform where data from various sources like ERP and CRM systems, websites, and social media is integrated, transformed, and stored.
This structure is particularly adept at enhancing reporting and analysis capabilities, streamlining decision-making processes by providing access to historical data, and increasing efficiency in data handling and analysis.
However, data warehouses are not without their limitations. They often lack the flexibility to handle unstructured data, such as social media and streaming data. The cost of maintaining a data warehouse can be high, and there are inherent security concerns, especially when dealing with sensitive or proprietary information. Moreover, compatibility issues may arise due to the integration of data from diverse sources with varying formats and measurements.
Data Lakes
Data lakes, on the other hand, offer a more flexible approach to data storage. They are vast pools of raw, unprocessed data stored in their native format. This architecture is designed to handle a wide range of data types – structured, semi-structured, and unstructured.
The key advantage of data lakes lies in their ability to store massive volumes of data cost-effectively, making them particularly suitable for machine learning and predictive analytics applications.
Despite these advantages, data lakes are not without challenges. They can be difficult to manage effectively, and if not properly organized, they can turn into what is colloquially known as "data swamps."
Poorly managed data lakes can lead to challenges in data retrieval and integration with business intelligence tools. Additionally, the lack of consistent data structures can result in inaccurate query results, and the open nature of data lakes can pose significant data security challenges.
Data Lakehouse
A data lakehouse represents that newer, hybrid approach, combining the best elements of data warehouses and data lakes. They offer a unified platform for structured, semi-structured, and unstructured data, providing the flexibility of a data lake with the structured environment of a data warehouse.
This architecture is particularly appealing for its cost-effectiveness and reduced data duplication. It supports a wide range of business intelligence and machine learning tools, offering improved data governance and security compared to traditional data lakes.
However, as a relatively new concept, the data lakehouse is still evolving. They may present challenges in terms of reduced functionality compared to more specialized systems and require further development to fully realize their potential.
Making the Right Choice
Data warehouses are ideal for organizations that require robust, structured data analytics and business intelligence capabilities. Data lakes are more suited to those who need a flexible, cost-effective solution for storing and analysing large volumes of diverse data types, particularly for machine learning applications. Data lakehouses, being a blend of the two, offer a versatile solution that can cater to a wide range of data storage and analysis needs.
As the field of big data continues to evolve, so too will these storage solutions. Each architecture has its place in the data ecosystem, and the choice of which to use will depend on the specific requirements, data types, and strategic goals of the organization. Understanding the strengths and limitations of each is key to making an informed decision that aligns with the organization's data strategy and future growth plans.

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