Data virtualization enable organizations to increase analytics effectiveness and reduce analytics costs by creating a virtual layer that aggregates data from multiple sources. This enables companies to access data from multiple sources without setting up a costly data warehouse or spending time on data preparation. It is also called Logical data warehouses – LDW, data federation, virtual databases, and decentralized data warehouses.
A traditional data warehouse relies heavily on ETL that needs a significant programming effort with special tools and scripting languages. A logical data warehouse creates a virtual layer that handles the ETL.