What storage method is used for external data?

The selection of a data warehouse as the correct storage method for external data underscores its purpose and functionality in managing large volumes of data from various sources. A data warehouse is specifically designed to consolidate and store data from multiple external systems, enabling comprehensive analysis and reporting. It integrates data from disparate sources, ensuring that it is structured and optimized for retrieval and analysis.

Data warehouses also provide features such as data cleaning, transformation, and historical data storage, which are essential for making informed business decisions. They support advanced analytics, business intelligence, and data mining efforts, making them a crucial asset for organizations looking to leverage external data effectively.

In contrast, while internal databases and SQL servers can store data, they are typically more suited for operational systems or internal data usage rather than the aggregation and analysis of diverse external data sources. Excel sheets, although useful for smaller datasets and quick analysis, lack the capacity and robustness required for large-scale data storage and analytical purposes offered by data warehouses.