A data warehouse is a relational database that is designed for query and analysis rather than for transaction processing. It usually contains historical data derived from transaction data, but it can include data from other sources. It separates analysis workload from transaction workload and enables an organization to consolidate data from several sources. In addition to a relational database, a data warehouse environment includes an extraction, transportation, transformation, and loading (ETL) solution, an online analytical processing (OLAP) engine, client analysis tools, and other applications that manage the process of gathering data and delivering it to business users. In short Data warehousing combines data from multiple, usually varied, sources into one comprehensive and easily manipulated database.

Businesses might warehouse data for use in exploration and data mining, looking for patterns of information that will help them improve their businesses. A good data warehousing system can also make it easier for different departments within a company to access each other's data. For example, a data warehouse might allow a company's CEO to easily exame the sales team's data and help him to make decisions about how to improve sales or streamline the department. Effective data storage and management are also what make things like making travel reservations and using automated teller machines possible.

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