There are a myriad of tools that help with data. At the core of this is the database. As should be no surprise, there has been an evolution of this critical technology over the decades. But even older technologies like relational databases are still very much in use today. When it comes to mission-critical data, companies are reluctant to make changes—even if there are clear benefits.
To understand this market, let’s rewind back to 1970, when IBM computer scientist Edgar Codd published “A Relational Model of Data for Large Shared Data Banks.” It was pathbreaking as it introduced the structure of relational databases. Up until this point, databases were fairly complex and rigid—structured as hierarchies. This made it time consuming to search and find relationships in the data.
As for Codd’s relational database approach, it was built for more modern machines. The SQL script language was easy to use allowing for CRUD (Create, Read, Update, and Delete) operations. Tables also had connections with primary and foreign keys, which made important connections like the following:
- One-to-One: One row in a table is linked to only one row in another table. Example: A driver’s license number, which is unique, is associated with one employee.
- One-to-Many: This is where one row in a table is linked to other tables. Example: A customer has multiple purchase orders.
- Many-to-Many: Rows from one table are associated with rows of another. Example: Various reports have various authors.
With these types of structures, a relational database could streamline the process of creating sophisticated reports. It truly was revolutionary.
But despite the advantages, IBM was not interested in the technology and continued to focus on its proprietary systems. The company thought that the relational databases were too slow and brittle for enterprise customers.
But there was someone who had a different opinion on the matter: Larry Ellison. He read Codd’s paper and knew it would be a game changer. To prove this, he would go on to co-found Oracle in 1977 with a focus on building relational databases—which would quickly become a massive market. Codd’s paper was essentially a product roadmap for his entrepreneurial efforts.
It was not until 1993 that IBM came out with its own relational database, DB2. But it was too late. By this time, Oracle was the leader in the database market.
Through the 1980s and 1990s, the relational database was the standard for mainframe and client-server systems. But when Big Data became a factor, the technology had serious flaws like the following:
- Data Sprawl: Over time, different databases would spread across an organization. The result was that it got tougher to centralize the data.
- New Environments: Relational database technology was not built for cloud computing, high-velocity data, or unstructured data.
- High Costs: Relational databases can be expensive. This means that it can be prohibitive to use the technology for AI projects.
- Development Challenges: Modern software development relies heavily on iterating. But relational databases have proven challenging for this process.
In the late 1990s, there were open source projects developed to help create next-generation database systems. Perhaps the most critical one came from Doug Cutting who developed Lucene, which was for text searching. The technology was based on a sophisticated index system that allowed for low-latency performance. Lucene was an instant hit, and it started to evolve, such as with Apache Nutch that efficiently crawled the Web and stored the data in an index.
But there was a big problem: To crawl the Web, there needed to be an infrastructure that could hyperscale. So in late 2003, Cutting began development on a new kind of infrastructure platform that could solve the problem. He got the idea from a paper published from Google, which described its massive file system. A year later, Cutting had built his new platform, which allowed for sophisticated storage without the complexity. At the core of this was MapReduce that allowed processing across multiple servers. The results would then be merged, allowing for meaningful reports.
Eventually, Cutting’s system morphed into a platform called Hadoop—and it would be essential for managing Big Data, such as making it possible to create sophisticated data warehouses. Initially, Yahoo! used it, and then it quickly spread, as companies like Facebook and Twitter adopted the technology. These companies were now able to get a 360 view of their data, not just subsets. This meant there could be more effective data experiments.
But as an open source project, Hadoop still lacked the sophisticated systems for enterprise customers. To deal with this, a startup called Hortonworks built new technologies like YARN on top of the Hadoop platform. It had features like in-memory analytic processing, online data processing, and interactive SQL processing. Such capabilities supported adoption of Hadoop across many corporations.
But of course, there emerged other open source data warehouse projects. The well-known ones, like Storm and Spark, focused on streaming data. Hadoop, on the other hand, was optimized for batch processing.
Besides data warehouses, there was also innovation of the traditional database business. Often these were known as NoSQL systems. Take MongoDB. It started as an open source project and has turned into a highly successful company, which went public in October 2017. The MongoDB database, which has over 40 million downloads, is built to handle cloud, on-premise, and hybrid environments.9 There is also much flexibility structuring the data, which is based on a document model. MongoDB can even manage structured and unstructured data at high petabyte scale.
Even though startups have been a source of innovation in database systems and storage, it’s important to note that the mega tech operators have also been critical. Then again, companies like Amazon.com and Google have had to find ways to deal with the huge scale of data because of the need for managing their massive platforms.
One of the innovations has been the data lake, which allows for seamless storage of structured and unstructured data. Note that there is no need to reformat the data. A data lake will handle this and allow you to quickly perform AI functions. According to a study from Aberdeen, companies who use this technology have an average of 9% organic growth compared to those who do not.10
Now this does not mean you have to get rid of your data warehouses. Rather, both serve particular functions and use cases. A data warehouse is generally good for structured data, whereas a data lake is better for diverse environments. What’s more, it’s likely that a large portion of the data will never be used.
For the most part, there are a myriad of tools. And expect more to be developed as data environments get more complex.
But this does not mean you should chose the latest technology. Again, even older relational databases can be quite effective with AI projects. The key is understanding the pros/cons of each and then putting together a clear strategy.

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