In the latest in our insight series, we explore six reasons why a private equity (PE) firm might choose to build its own proprietary data warehouse. Using enterprise technologies such as Azure or Snowflake.
Control
Having its own data warehouse gives PE firms complete control over its data. They can decide what data to collect, how to store it, how to analyse it, and how to use it to drive decision-making.
Competitive Advantage
A custom-built data warehouse can provide a competitive advantage by enabling unique insights and analytics that are not possible with generic, off-the-shelf solutions.
Integration
A custom data warehouse can be designed to integrate seamlessly with the firm’s existing systems and processes. This can help to ensure that all data is consistently and accurately captured, processed, and reported.
Customisation
A custom-built data warehouse can be tailored to the specific needs and requirements of a PE firm. This includes custom data models and analytics capabilities. As well as reporting features that may not be available in off-the-shelf, or vendor provided solutions.
Security
By building their own warehouse, PE firms can implement their own security measures and protocols. This can provide greater control over data access and protection, which is particularly important given the sensitive nature of the data that PE firms handle.
Cost
While building a custom data warehouse requires an initial investment, it can save time and money in the long run if done right. The firm can avoid ongoing licensing fees associated with vendor-provided solutions and can also avoid the costs associated with adapting these solutions to their specific needs.
In conclusion
Leveraging enterprise grade technologies and functionality provided by tools such as Snowflake and Microsoft Azure have made in-house data warehousing solutions increasingly straight forward with quick time to value if done right. With the support of the right guidance and expertise, building your own data warehouse comes with significant advantages.
And that’s where we come in. Our expertise and advice can help you make the right decision for your organisation. If you’d like to find out more, we’d be happy to help.
