ETL Software Is All About Boosting Business with Quality Data By Ritinder Kaur, Senior Technical Content Writer at SelectHub
ETL platforms collect your digital business assets in a structured format for analysis and reporting. Most analytics and BI tools have built-in ETL capabilities. Whether you want end-to-end data management or a standalone ETL solution, assessing your requirements early on helps in software selection.
This guide includes the definition of ETL tools, benefits, features and current trends. It also covers a most popular products section to acquaint you with common features of ETL platforms.
Executive Summary
- ETL tools give you a single source of truth to work with unique, accurate information.
- Deciding whether to deploy on-premise or in the cloud depends on your business needs, infrastructure and budget.
- The need for real-time insight makes live updates a must-have feature for many enterprises.
- Automated ETL workflows keep information up-to-date without the need for manual intervention.
- Advanced ETL features include machine learning algorithms and event-driven architecture.
- Define your requirements by framing questions to ask within your organization and of the vendor.
What Is ETL Software?
ETL solutions pull business data from sources, transform it into a structured format and upload it to storage. Modern ETL systems populate warehouses by generating the extraction code automatically through workflow designers.
ETL includes the following steps:
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Extraction: Drawing assets from various sources and storing them in a staging area.
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Transformation: Mapping the data’s schema to the target storage and converting it into a compatible format.
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Loading: Loading the data into the repository.
Modern ETL software ingests disparate asset types, including text, audio, video and streaming data. It surfaces undiscovered business opportunities and discrepancies that might impact operations. You can make more focused, data-driven strategies.
Deployment Methods
As new data types become available, you need a scalable, performant ETL solution to stay competitive. Will an on-premise solution scale with your business, or will you need to migrate to the cloud? Each deployment model has its pros and cons.
It’s a good idea to assess what you’re willing to compromise on and which attribute is a must-have for your organization.
On-premise
Deploying on premise frees you from internet dependence and connectivity issues. Opting for a perpetual license with a one-time, lump-sum payment is cost-effective compared to an annual subscription which might get pricier over time.
Enforcing governance and security protocols is your responsibility, as is maintenance, though you have greater control over your data.
However, deployment can be effort-intensive and time-consuming. Infrastructure and training costs can add up, making it an expensive option. Scaling the system with industry-grade security and governance protocols might cost extra.
Cloud-based
You can opt to self-host on a private cloud or subscribe to a software-as-a-service version. If you’re considering a hosted version, ask if the vendor will provide a sole or shared instance. Sharing computing and storage resources is cost-effective, though it might impact performance. On the other hand, a single-tenant option can be expensive.
Cloud systems have a low cost of entry since pricing is often subscription-based and includes maintenance and support. It makes cloud software an attractive option for small enterprises. Implementation is painless as maintenance, troubleshooting and upgrades are on the vendor.
Cloud systems are scalable with your business and available on all internet-connected devices.
But, connectivity issues can cause the software to lag. Deploying on the public cloud forces you to rely on the vendor’s servers. The business might suffer if the servers go down or the vendor implements downtime for upgrades or patch fixes.
Though a monthly subscription seems affordable, costs can stack up quickly with additional licenses, modules and upgrades. Large enterprises with the resources to pick and choose might find on-premises deployment a viable option.
Security and performance are primary concerns with cloud-based systems, while on-premise systems are resource-intensive. Vendors offer an in-between solution with the best attributes of the two — hybrid cloud — and many enterprises are opting for it.
Hybrid Cloud
A hybrid cloud solution allows storage, backup, compliance and security on private servers while giving you access to cloud-native capabilities. A single interface lets you manage the cloud and on-premises components while an orchestration element joins the two.
It’s ideal for enterprises seeking to make their legacy systems work. Many organizations find the hybrid cloud a convenient first step to migrating to the cloud entirely.
Not sure which deployment model will fit your needs? Receive advice from the experts for greater clarity.
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Benefits
Data accessibility, or lack of it, can make or break your company, and ETL software fills this gap.
Let’s look at other ways in which it benefits your business.
Centralize Digital Assets
Previously, sources were few, but establishing connections through manual code took days, even weeks. Thanks to modern connectors, ETL tools pull information from multiple sources in less time. These assets are stored in a centralized repository and serve as the final source of truth, helping you stay competitive.
Get Faster Insights
Parallel processing helps manage large asset volumes in little time. Get access to the latest, accurate insight by scheduling automatic data refreshes or updating information manually with a single click. Fact-based decisions enhance performance and position your company to take advantage of business opportunities.
Manage Big Data
ETL software supports complex filters, conditions, parameterization and aggregation. It speeds up transformation by reusing data maps, irrespective of the underlying assets. Built-in error handling empowers developers to build operationally resilient integration solutions.
Integrate With BI Tools
Flexibility and interoperability ensure your ETL tool works well with other data integration framework components, including your company’s software and hardware. A central metadata repository facilitates integrating with other systems, including BI tools. Metadata includes data definitions, models for target databases and source-to-target transformation rules.
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Implementation Goals
What do you hope to achieve by implementing ETL? Though every business might have a different answer to this question, here are some common implementation goals to get you started.
Goal 1 Stay Competitive | - You want to boost revenue.
- You hope to outperform others in the market.
- You wish to prepare for opportunities and eventualities in advance.
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Goal 2 Track Business Performance | - You want to know how your business is doing every day.
- You require accurate month-end financial reports.
- You need to monitor employee performance to identify improvement areas.
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Goal 3 Make Data-Backed Decisions | - You want the ETL software to manage your large, complex datasets.
- You wish to plan ahead with accurate, up-to-date, easy-to-read reports.
- You want to base your decisions on hardcore figures, not hunches.
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Goal 4 Centralize ETL Processes | - You want to view all ETL processes on a centralized interface.
- Administrators should have the right to manage all sources and ETL workflows centrally.
- Creating automated workflows should be easy.
- User access to the central console should be role-specific.
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Including implementation goals when assessing ETL platforms will help you narrow down your options.
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Key Features & Functionality
Identifying your essential requirements at the onset sets a sound foundation for your software search.
Here are some basic features of ETL software.
Source Connectivity | Connect to your organization's file formats, databases, CRMs, ERPs, and other solutions. Pull information from text, CSV, Excel and XML files and applications like Salesforce, HubSpot, etc. |
Self-Service Data Management | Democratize data extraction and transformation through no-code ETL. Blend complex data volumes and process them at scale on a visual interface. Anyone can learn how to build a data pipeline in minutes with automated workflow templates. |
Data Preparation | Cleanse, sort, group and migrate large volumes of data across systems and warehouses. Incremental transformation is a lightweight updating technique that changes only new, unchanged data to align with the warehouse schema and requires little ETL overhead. Ask for it when talking to potential vendors. |
Reporting | Get periodic ETL job status reports or generate them ad hoc. Set alert notifications for incomplete jobs, halted workflows and other errors and discrepancies. |
Quality Management | Maintain information in complete sync irrespective of how the updates happen, whether in batches or real time. Ensure accurate and reliable data with an intricate network of connectors and databases. |
Security | Secure data while conveying it across systems and networks with encryption in motion and at rest. Choose an ETL solution that complies with current security regulations like GDPR, SOC II, CCPA and HIPAA. |
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Advanced Features
If you seek advanced features for your ETL tool, reach out to the vendor to learn what it will cost. If starting from scratch, select a tool you can scale later by adding advanced attributes.
Here’s a ready reckoner.
Real-Time ETL | Get real-time updates, especially if your industry deals with time-critical use cases, like booking systems, point-of-sale terminals or healthcare-related workflows. Make faster decisions with continuous real-time data integration through container-based ETL. Deploy a distributed, scalable, near real-time ETL environment using J2EE technology. |
Event-Driven Architecture | Ingest streaming data from Amazon Redshift, Snowflake, Google BigQuery, Google Analytics, Salesforce, SAP, social media platforms, etc. Enrich the data with externally sourced information through ML-driven algorithms. Traditional ETL systems can’t process this data, while few modern tools can. They have loosely coupled data sources and consumer systems. When streaming systems publish new events, consumer modules connect to them and populate the warehouse accordingly. |
Automation | Schedule transformation tasks and complex workflows through built-in job scheduling. Automate repetitive tasks, freeing up resources to focus on effort-intensive tasks. Artificial intelligence automates the ETL process — there’s no need to enter information into the database manually. Stay updated about how the ETL jobs are performing with live notifications. |
Pre-Built Transformations | Convert data to a usable format with little or no technical skills. Deliver information faster by simplifying complex data changes with built-in transformations. |
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Industry Trends
Staying informed about current trends can impact your software purchase decision. If you’re planning to scale the business, which popular functionality should you factor in today?
Here’s a list of ETL software trends.
Data Literacy
Enterprises seek faster time to insight, hence the push for data literacy. Business owners want everyone to know how to manipulate, visualize and analyze data. Vendors align their offerings to include an intuitive interface and a centralized task management console.
User-friendly actions like drag and drop, selecting and clicking, etc., let you autonomously manage ETL processes. The learning curve is shorter, and organizations save time on employee training. You can start building entire data pipelines within days after deploying a self-service ETL solution.
Greater autonomy requires guardrails, and role-based access restrictions and audit trails ensure accountability through transparency. With the industry's focus on reducing the time to market, this trend is likely to evolve.
Cloud Migration
Anywhere accessibility, interoperability and pay-as-you-go models make the cloud an attractive option. Statista predicts investment in global cloud IT infrastructure to from $90 billion in 2022 to $133.7 billion by 2026.
Security is a primary enterprise concern when considering cloud migration. However, studies say it isn’t so much the data’s location as the origin of malicious intent that puts your assets at risk. 34% of data breaches happen through internal theft and twenty seven percent through accidental data leaks.
Cloud software vendors provide compliance with industry-grade security standards like GDPR, CCPA, HIPAA, SOC 2, etc. Cloud ETL systems are enterprises’ first choice when migrating their digital assets, and this trend is likely to stay.
Automation
It executes all ETL steps in the correct sequence without error-prone manual intervention. Automated ETL workflows support software development on two fronts — app and database updates.
Did you know that Amazon deploys updated code to production every 11 seconds, while Netflix does it at least a thousand times a day? ML-based automated data preprocessing improves data quality before transforms happen.
Mapping extract, transform and load processes to an ETL tool and invoking the automated script through the command line can set these processes in motion. Automated ETL manages warehouse functions, coordinating operations across applications and databases.
Database release automation keeps your repositories updated. When developers commit the database changes to version control, the ETL tool initiates the integration process, and the data warehouse reflects the changes. It helps enterprise reporting tools generate real-time reports.
Automated ETL speeds up data availability and is likely to be a must-have feature on enterprises' lists for the foreseeable future.
Modern ETL
Traditional ETL systems are monolithic, rigid and unable to adapt to large data volumes. They support batch processing of structured and semi-structured data only. Efficient metadata management and compliance are often lacking, and vendor lock-in and license costs make legacy systems a liability.
Support for unstructured data, complex transformations and real-time processing is essential to use proprietary data to its fullest potential. Adopting ETL modernization techniques is a way for enterprises to make it happen.
These include big data pipelines using Apache Spark/Azure Databricks, containers and serverless platforms, and ELT. The extract, load and transform technique involves loading the assets into the warehouse and processing only the required data when necessary.
Your ETL modernization strategy should align with your digital and IT roadmap, deployment framework and skill levels.
Check out our Business Intelligence Trends article to learn more about the latest, most relevant trends.
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Software Comparison
You should have enough information now to start making your own requirements checklist. Or get our free requirements template to get started. Some businesses require batch processing only, and a traditional ETL tool can serve their needs. However, if you need live updates, you’ll need an ETL tool with streaming data capture, especially if you deal with big data.
Contacting colleagues and industry peers is a great way to get tried-and-tested product references. Compare and contrast the features of various tools with our comparison matrix.
Cost & Pricing Considerations
Product costs will vary depending on the deployment model you choose.
If planning to deploy on-premise, you can opt for a one-off purchase or recurring payment model with capacity pricing. When calculating the cost of ownership, factor in infrastructure deployment, maintenance and technical overheads.
Include the cost of add-ons and additional features if you’re considering a cloud-based solution.
The total cost of ownership may include but is not limited to the below considerations:
- Deployment support
- Upgrades
- Maintenance
- Add-ons
- Customization
- Training
The best ETL tool for you will be a solution that meets your business requirements without breaking the bank.
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Questions to Ask Yourself
Use these questions as a starting point for internal conversations:
- Which deployment option will you prefer — on-premises, cloud or hybrid cloud?
- Which are your preferred data sources?
- Who will use the solution? Will they require training?
- Will your business need streaming data?
- How important are self-service capabilities for your organization?
Questions to Ask Software Vendors
Use these questions as a starting point for conversations with vendors:
About the Software
- Is the software compatible with your legacy systems?
- Can you build data pipelines autonomously?
- Does it comply with HIPAA, GDPR and SOC II?
- Does it integrate with big data sources?
- Is automation available?
- What are the pricing plans? What features and customization options will cost extra?
- Is it easy to use?
About the Vendor
- Does the vendor specialize in ETL software?
- How often do they release updates?
- Is support included, and what are the available tiers? If not, how much will it cost?
- What is the learning curve like? Is training included?
- Which security protocols do they have in place?
In Conclusion
Selecting an ETL tool needs careful thought and lots of research. This buyer’s guide is a primer for IT professionals looking for the right product for their organization.