Amazon’s Redshift is losing ground in the data warehouse wars

Data warehousing continues its rapid move from on-premise to cloud-based solutions, but organizations still struggle to manage data, according to Panoply’s annual Data Warehouse Trends report, released Friday.

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Migration to cloud-based data warehouse solutions today is estimated to be around 10x the adoption of on-premise solutions, the report found. However, 29% of the 800 data engineers, scientists, and analysts surveyed said they are still using an on-premises data warehouse, and 23% said they are not using any data warehouse solution at all, demonstrating that the move to the cloud is not yet complete, according to the report.

While Amazon’s Redshift is still the data warehouse leader across companies of all industries and sizes, it has lost substantial market share to other offerings, the report found. In 2017, 60% of respondents reported using RedShift, while in 2018, only 40% did, the report found.

Other industry leaders like BigQuery and Azure SQL Server are not significantly picking up the slack, but smaller companies like Snowflake and Oracle are emerging as market contenders, according to the report.

Complexity is still a major barrier for data warehouse users: More than half of those that use these solutions characterize them as “difficult” or “very difficult” to use, the report found. Some 62% of RedShift users said they found it difficult to use, largely due to issues around complexity. And 81% of those using on-premise solutions said that complexity was a pain point.

More than half of respondents also reported frustrations with hanging or slow queries in their data warehouse solutions, the report found.

To win more market share, data warehouse solutions must be powerful, customizable, and dependable to meet customer needs and address pain points, the report noted.

To learn more about data center trends, check out TechRepublic’s coverage here.

The big takeaways for tech leaders:

  • 29% of organizations are still using an on-premises data warehouse. — Panoply, 2019
  • In 2017, 60% of respondents reported using RedShift, while in 2018, only 40% did. — Panoply, 2019

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