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OLAP Server Layer and capabilities- Why is OLAP needed?

OLAP sits between the Data Warehouse and the End-User Tool.

The various OLAP Capabilities and OLAP Architectures are covered in the separate sections. This topic provides what & why of the same. A Data- Warehouse/Data-Mart is a repository having relational database structure. OLAP is an optional layer, which sits between the Data-Warehouse/Data-Mart and the end-user tools.

As data is moved from various transaction systems into the warehouse, it must be stored in a way that maximizes system flexibility, manageability and overall accessibility. Because the information stored in the warehouse is read-only, historic in nature and includes detailed transaction data, the best data warehousing technology is the relational database. Both Data Warehouses (e.g., comprehensive, enterprise-wide, etc.) and data marts (e.g., subject-OR application-specific) must be accessible to a wide variety of users to satisfy their information needs

Why OLAP is needed

OLAP layer/server provide the capability, which cannot be met by the productivity tools sitting directly on the relational database of warehouse. Data Warehouse first & foremost function is to provide a sanitized repository (system of record) of current and historical details for various purposes (which include analytics, data mining, Strategic planning , enterprise reporting and so on…) OR in other words, provider of the Data. OLAP sits over the Data Warehouse to enable the end-user tools translate the same into information.

    In brief, various OLAP Capabilities are:

  • The ability to scale to large volumes of data and large numbers of concurrent users.
  • Consistent, fast query response times that allow for iterative analysis.
  • A calculation engine that includes robust mathematical functions for computing derived data (aggregations, matrix calculations, cross-dimensional calculations, OLAP-aware formulas and procedural calculations).
  • A multi-user read/write environment to support users what-if analysis, modeling and planning requirements.
  • The ability to be deployed quickly, adopted easily and maintained cost-effectively.
  • Robust data-access security and user management.
  • Availability of a wide variety of viewing and analysis tools to support different user communities

Difference between Data Warehouse Vs. OLAP

Comparison Factor

Data Warehouse

OLAP

Purpose

Scope of Content

Across the enterprise, functions and processes.

Subject OR function linked

Role System of record- Data Reference point for BI Analytics and end-user BI enablement
Data Positioning    

Level of detail of data storage

Detailed transaction level data, with some aggregate tables

Summarized data

Data Structure

Dimensional Model in relational database form

Dimensional Model with multi-dimensional form (while there are some OLAPs with RDBMS format)

Level of pre-calculated Data

Limited (As the information is at a transaction level pre-calculated data can lead to significant data-base growth)

High

Data Volumes

Gigabyte to Terabytes

Gigabytes

Access

User Access Rights

Read-only

Read and write

Access mode Data Retrieval, one-way Iterative, to and fro (if write backs are allowed in an OLAP)
Ease of Access Highly IT assisted Less IT assisted- More ease of use

 

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