Data Warehouse vs Data Lake vs Data Lakehouse

Posted by Amol Dighe on May 4, 2025

1. Data Warehouse (DW)

A centralized repository designed for structured data (tables, rows, columns). Optimized for business intelligence (BI), reporting, and analytics.

Data type: Structured (relational, transactional, processed).

Schema: Schema-on-write (define schema before loading).

Cost: Expensive (compute + storage tightly coupled).

Use cases: Dashboards, trend analysis, financial reporting.

Examples: Snowflake, Amazon Redshift, Google BigQuery, Teradata.

2. Data Lake

A storage system that holds raw data of all types (structured, semi-structured, unstructured). Designed for flexibility and large-scale storage, not optimized for BI directly.

Data type: Structured (CSV, Parquet), semi-structured (JSON, XML), unstructured (logs, images, videos).

Schema: Schema-on-read (define schema when querying).

Cost: Cheaper (storage & compute decoupled).

Use cases: Data science, machine learning, big data analytics.

Examples: Amazon S3 + Athena, Azure Data Lake Storage, Hadoop HDFS.

3. Data Lakehouse

A hybrid approach that combines the best of both data lakes and warehouses. Stores all data types like a data lake, but supports structured querying and ACID transactions like a warehouse.

Data type: All types (structured + unstructured).

Schema: Flexible → supports both schema-on-write and schema-on-read.

Cost: More cost-effective than DW, scalable like DL.

Use cases: BI + ML/AI + advanced analytics in one platform.

Examples: Databricks Delta Lake, Apache Iceberg, Snowflake (newer versions).

Feature Data Warehouse Data Lake Data Lakehouse
Data Types Structured only All (structured → raw) All (structured + raw)
Schema Schema-on-write Schema-on-read Both
Performance High for BI Slower (raw queries) Optimized (BI + ML)
Cost High Low Medium/Low
Best For Business reporting ML, AI, Big Data Unified analytics