Because data warehouses use OLAP, they make finding answers to these complex questions very efficient. This is great for business intelligence because the questions you ask about your data in order to make decisions are rarely simple. One way to think about it is that when you go to your data warehouse to ask a question about the relationship between one set of data and another, OLAP is a way of organizing and moving among the rows and rows of shelves to quickly find that information. With all the data stored in one place, data warehouses use a specific approach to process data called online analytical processing (OLAP), which is specifically designed for complex queries. Hybrid data warehouses are a mix of both on-premise and cloud, and companies making the transition to the cloud over a period of time use this option. Cloud data warehouses are fully online, and you pay for space on servers that another company manages, like Amazon Redshift. On-premise data warehouses run on physical servers that your company owns and manages. You can store this data in three different ways: on-premise data warehouses, cloud data warehouses, and hybrid data warehouses.
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