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HomeMarketingTechnologyHow to Build a Data Lake: Best Practices, Structure, and Examples

How to Build a Data Lake: Best Practices, Structure, and Examples

A data lake is a storage technology for large datasets spread across several servers. When it comes to storing and processing such large amounts of information, it’s best to go with a data lake rather than traditional databases. This type of storage has many benefits, such as increased speed when accessing the stored information and lower costs.

Why Build a Data Lake

A data lake is a storage technology for large datasets spread across several servers. In previous years, this type of storage was primarily used by companies that deal with big data. Big data refers to the large amounts of information that are generated by machines and which cannot be processed using databases or other tools.

But now, modern businesses need to store huge amounts of information related to their operations. The amount of information can include all sorts of things, such as financial transactions, sales records, operating reports and so on.

To handle such huge amounts of data, organizations going after digital transformation need to use innovative technologies and techniques. A data lake is one such tool that allows organizations to store large amounts of data in a single location.

As explained, a data lake is a storage solution for large datasets spread across several servers. The primary benefit of using this type of storage is the cost savings. It’s much cheaper to connect multiple servers and have them stream data into a storage system rather than having expensive individual hard drives or other computer components on each server.

But with this type of storage, companies can also utilize more computing power and memory when processing their huge amounts of information. The big data is processed by one or more servers and the data lake stores the results.

Companies who do this can stay up with fast changing data regulatory and compliance regulations, such as the European Union’s General Data Protection Regulation, which is set to go into effect in May 2018.

Because of their ability to store huge amounts of data, companies that use a data lake can perform advanced analytics on their information and make better business decisions. Instead of collecting hours and hours of raw data and having employees look at it all, a company can use resources and time more efficiently by using a data lake.

They can run complex analytics algorithms on the stored information to find patterns that could lead to better business decisions. For example, a company could analyze sales patterns to predict future sales or check shipping records to spot problems in the order processing system.

What is Data Lake


Data lakes are a popular choice for data scientists working with structured data. Data lakes offer many benefits, including the ability to scale easily and the ability to query data quickly. However, data lakes can also be a source of data silos. Data scientists should be aware of data lake architecture and how to avoid creating data silos.

A data lake is a huge data warehouse where companies can store and analyze all the data involved in their business. They do this by using Hadoop, which is an open-source framework that helps in storing, managing, and analyzing large amounts of data.

The main function of this type of system is to manage the data flows that organizations have within their business processes. This allows them to collect information from all aspects of their business, manage it, transform it, store it and analyze it so that they can make efficient decisions regarding their products or services.

How Does a Data Lake Work

To work on a data lake, an organization has to decide how it wants to structure its data. This can be done by using the right combination of servers and storage technologies.

In a simple situation, an organization might have one server with all of its data and another server with critical information related to that data. In this situation, the company would want critical information to be stored somewhere in case there is a problem with the main repository.

But if the company wants all of its information in one location, it could create multiple servers with copies of their various pieces of information. As long as those servers are connected to each other via the correct storage technologies, everything will be accessible from any device accessing the Internet or company website.


The storage technologies that make a data lake work are similar to those used in other types of data storage systems. For example, a company can initialize its data lake with a MySQL database and use Elasticsearch to process the information. There are also products that offer solutions for processing the stored information across all of the servers.

If this is done correctly, it’s possible to create the best version of a data lake possible. And that means all of the information will be processed and analyzed together in one place, rather than having to store everything on different servers or within a single system.

As the world increasingly moves online, the amount of data available grows exponentially. This data comes in many forms, including structured data (e.g. databases) and unstructured data (e.g. social media posts).

Managing this data effectively has become a challenge for organizations, as it can quickly become overwhelming – a “data swamp”. Data governance is a framework that helps organizations manage their data more effectively, by defining roles and responsibilities for data owners, for example, a hierarchical data warehouse.

Best Practices For Building a Data Lake

While it’s true that data lakes are a convenient and cost-effective way of storing large amounts of information, they aren’t always the best choice. After all, there are other technologies that do the same job without all of the complications related to a data lake.

And while it may seem that using this type of storage is great for companies going after digital transformation, they have to run into some problems before making their final decision.

The biggest problem related to this type of storage is that it can be difficult to process large amounts of information. It can take hours for a company to get its information from the data lake into usable form and even more time for them to perform analytics on top of that information.


Azure Data Lake Analytics is an on-demand analytics job service that simplifies big data. Create and run massively parallel data transformation and processing programmes in U-SQL, R, and Python with ease.

Another problem is related to the structure of a data lake. Companies have to make sure that their data lake has the correct structure before using it. Otherwise, they might have problems retrieving important information. There are some products that offer solutions for this problem, but it’s still very difficult to get everything in place without proper planning and research.

The decision related to whether or not a data lake is a right choice depends on many factors, including cost, amount of information stored and systems used by the company. If an organization wants all of its information in one place and doesn’t want to spend too much money on its storage solutions, this type of storage might be worth considering.

The Structure of a Data Lake

A data lake contains a large amount of information, so it’s important to understand how each component of the storage solution works. If companies gather information and use the right storage technology, they can get all of their information into one place without having to process it manually.

To help manage all of this data, there are several components that can be used in a data lake. Here are some examples.

Storage List

In this component, an organization lists all of the files and systems that need to be included in its data lake. It then makes sure that those files and systems are connected to each other via the correct storage technologies.


In this component, the systems that are used to process the data are stored. This component is useful for companies that want all of their data to be processed at once.

Information Retrieval

In this component, all of the stored information is organized and made available to other storage technologies, such as an in-memory database or NoSQL database.

Data Retrieving

This component retrieves information from all of the other components and stores it in a relational database management system, a search index and an optimized file system. These systems allow organizations to retrieve their information faster than they can with a standard relational database management system.

While some of these components might seem complicated, they don’t have to be. All data storage solutions have a benefit for companies and this is true for systems that use a data lake.

Data Lakes vs. Data Warehouses

When it comes to technology, many companies overlook the difference between a data lake and a data warehouse. While both of these storage solutions are commonly used in digital transformation, there are some differences between the two.

A data lake contains structured, semi-structured and unstructured information. These systems are great for storing large amounts of information that can be processed together. While they may not contain all of the information an organization needs to make its business decisions, they can provide pieces of this information through analytic tools that are compatible with their infrastructure.

In contrast, a data warehouse contains structured and semi-structured information only. Unstructured information is converted into this structure before being placed in the data warehouse.

Companies have to be careful when deciding between a data lake and a data warehouse. After all, both of these types of storage can be very helpful in the right situation. However, it’s possible to create a data lake without using one of these systems.

Examples of Data Lakes

Data lakes are a great solution for storing large amounts of information. While data warehouses and other technologies can store this information, they aren’t designed for this massive amount of storage.

In contrast, it’s possible to create a data lake that has everything an organization needs and can be used to streamline all of the company’s digital transformation efforts. Here are some examples of how a data lake can be used in these cases.

Data Lakes in a Cloud Computing Environment

Digital transformation is often associated with cloud computing, so it’s no surprise that many companies are turning to the cloud when creating their data lakes. While a traditional data warehouse will help companies store large amounts of information, it isn’t always the best solution.

For example, many companies have a lot of information that needs to be stored in a cloud computing environment and designed for rapid retrieval. They can’t wait hours for their data to be processed before they can use it.

If this is the case, there’s no reason not to use self-service analytics to retrieve this information and make quick business decisions. These systems are easily connected to other storage technologies and allow organizations to get all of their information into one place without needing to process any of it manually.

The Data Lake and Digital Transformation

To summarize, there are many great benefits to using a data lake as part of an organization’s digital transformation. This technology can be used for more than just storing information, which is why companies should consider adding this component to their infrastructure.

It can help to streamline a company’s technology efforts and make it easier for an organization to get the information it needs in order to make business decisions. There are also other benefits involved with storing large amounts of information in a way that allows clients to retrieve the information they need in the most efficient way possible.

Even with these benefits, there are many things that companies need to consider before choosing this type of storage solution. For example, it’s important to choose a storage solution that isn’t too expensive, which is why companies can use cloud-based data lakes. They can also choose a system that is easy to use and doesn’t require extensive knowledge in IT or storage technology.

Stages of Data-Lake Development

A data lake can be created from a wide variety of different sources. While some companies start out with a data lake, they may decide to move on to another component in their infrastructure, such as a data warehouse or an analytics system. Here are some stages that can be used when creating a data lake.

Data Modeling

This stage involves creating the initial structure for your data lake so that it makes sense to everyone who is using it. During this stage, you need to establish what needs to be stored in the container and how you will be processing this information. There are several options available when it comes to storing this information and the best solution depends on the demand for information within your organization.

Data Integration

If a company has more than one source of data, it needs to be integrated into a single environment. This is accomplished by using tools that come with the data-lake infrastructure or third-party software. Once the data is combined, it will remain stored in this format until it is either removed or changed.

Data Transformation

This stage involves changing all of the information that has been stored in the same format and structure so that it can be retrieved faster and in a way that makes sense to an organization’s workforce. The most common way to change this information is by adding new attributes or updating the values of existing ones.

Processing of Data

Some data lakes don’t involve any processing at all, but those that do will have to undergo this stage before clients of the data lake can access the information. In some cases, this processing can involve using tools like an ETL tool to integrate and store the information.

Data Retrieval

This stage involves presenting all of this information in a way that makes sense to a company’s workforce. Whether they’re viewing it on a computer screen or on paper, they will be able to access all of this information quickly and make use of it in their daily business activities.

Benefits and Risks of Using Data Lake


Microsoft invests more than $1 billion in cybersecurity research and development each year. There are a number of benefits that can be gained from using a data lake, including the following.

Integrated and Consistent

Since it’s completely integrated into the company’s IT infrastructure, this type of storage system will never have an issue with connectivity. With a fully integrated solution, there’s no need to worry about whether your data will be available when you need it.

In addition to this, many data lakes don’t differentiate between stored information for internal use or for external clients. Even if an organization has very specific requirements for its stored information, it can access all of the information from its own point of view.

Efficient and Cost-Effective

Managing large amounts of information can seem like a major hassle without these systems. Data lakes can be manipulated to make this process much easier, which is why they are often used in companies that have a lot of data to store.

In addition to this, data lakes can also be easy to install. They don’t require extensive knowledge in the IT field and they typically operate on a very small scale. Many organizations choose this type of storage solution because it’s easier and less costly.

Unified Access

With a centralized storage system, all of the data will be stored in one place, which makes it easy for an organization to search for information no matter where it is found. This makes it much more efficient for all of the people who need information as well as anyone else who comes across it accidentally.

Easily Scalable

Once a company has the setup for a data lake in a place, it’s fairly easy to make it larger or smaller. This is because the storage solution is designed to automatically adjust itself to suit the needs of any organization, which makes scaling up or down simple. Companies are also able to add storage with minimal downtime and downtime can usually be kept below 30 minutes.

Lower Implementation Cost

Since data lakes are designed with high-performance standards in mind, they don’t typically need advanced IT skills or massive amounts of equipment installed before they can begin to provide value. This is why they are often used in organizations that have limited budgets.

Future of Data Lake

Data lake implementation is becoming increasingly popular for storing and managing data, especially semi-structured and unstructured data. Metadata management is critical for data lakes, as it helps data scientists find and use the data they need.

The Data Lakes Market was worth USD 3.74 billion in 2020 and is predicted to be worth USD 17.60 billion by 2026, growing at a CAGR of 29.9% between 2021 and 2026.

Despite the fact that data lakes are relatively new, many organizations around the world are already realizing the benefits that they provide. In fact, many of them are already implementing these systems in their daily operations. In order to do this effectively, it’s important to have a reliable cloud storage system.

Cloud storage has become increasingly popular over the last few years and companies of all sizes are using it in their IT infrastructure. It provides clients with a way to store and access their data quickly no matter where they may find themselves. The cloud is also much more cost-effective than other storage solutions, which makes it practical for every company regardless of its size or budget.

The cloud storage market is predicted to continue to grow over the next few years, which means that data lakes will continue to become more and more common. Since they provide such a large number of advantages, this growth is likely to continue well into the future.

As more and more organizations adopt this type of storage system, they will be able to understand how it can help them in their daily activities.

In order for these types of storage solutions to be even more effective, there are some developments that need to take place over the next few years. This includes improving storage performance and reducing the amount of downtime associated with upgrades.

Last Updated on October 12, 2023 by Priyanshi Sharma


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