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Data Virtualization

Last Updated : 27 Jan, 2025
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Data virtualization is used to combine data from different sources into a single, unified view without the need to move or store the data anywhere else. It works by running queries across various data sources and pulling the results together in memory.

To make things easier, it adds a layer that hides the complexity of how the data is stored. This means users can access and analyze data directly from its source in a seamless way, thanks to specialized tools.

Working on Data Virtualization

The data virtualization works in the following manner:

1. Data Abstraction

The process starts by pulling data from different sources—like databases, cloud storage or APIs—and combining it into a single virtual layer. This layer makes everything look unified and easy to access without worrying about where the data lives.

2. Data Integration

Instead of copying or moving data, the platform integrates it. It combines data from various systems into a single view, so you can work with it all in one place, even if it’s coming from completely different sources.

3. Querying and Transformation

Users can query the data using familiar tools like SQL or APIs. The platform handles any transformations or joins in real time, pulling everything together seamlessly—even if the data comes from multiple systems.

4. Real-time Access

One of the best things about data virtualization is that you get real-time or near-real-time access to up-to-date information. You don’t have to wait for batch processes to refresh the data because the system fetches it directly from the source.

5. Data Governance and Security

All access is managed centrally, so it’s easy to control who can see what. Security and compliance rules are applied across all data sources, ensuring sensitive information is protected while giving the right people access to what they need.

6. Performance Optimization

To keep things running smoothly, the platform uses techniques like caching frequently used data, optimizing queries, and creating virtual indexes. This ensures that even complex queries are fast and don’t slow down the source systems.

7. User Access

Finally, the data is made available through familiar tools like Tableau, Power BI, or even custom applications. Users don’t need to worry about the data’s location or structure—they just get a clean, unified view that’s ready to use.

Features of Data Virtualization

  • Time-to-market acceleration from data to final product: Virtual data objects can be created considerably more quickly than existing ETL tools and databases since they include integrated data. Customers may now more easily get the information they require.
  • One-Stop Security: The contemporary data architecture makes it feasible to access data from a single location. Data can be secured down to the row and column level thanks to the virtual layer that grants access to all organizational data. Authorizing numerous user groups on the same virtual dataset is feasible by using data masking, anonymization, and pseudonymization.
  • Combine data explicitly from different sources: The virtual data layer makes it simple to incorporate distributed data from Data Warehouses, Big Data Platforms, Data lakes, Cloud Solutions, and Machine Learning into user-required data objects.
  • Flexibility: It is feasible to react quickly to new advances in various sectors thanks to data virtualization. This is up to ten times faster than conventional ETL and data warehousing methods. By providing integrated virtual data objects, data virtualization enables you to reply instantly to fresh data requests. This does away with the necessity to copy data to various data levels but just makes it virtually accessible.

Layers of Data Virtualization

Following are the working layers in data virtualization architecture.

1. Connection Layer

This layer is all about connecting the virtualization platform to the different data sources you need. Whether the data is structured, like databases, or unstructured, like files or APIs, this layer handles it.

  • It connects to databases like MySQL, Oracle and MongoDB, as well as cloud storage services like AWS or Azure.
  • It can also handle APIs (REST or SOAP) and even semi-structured or unstructured data like JSON, XML or plain files.
  • Basically, it builds bridges to all the places where your data lives, so you don’t have to physically move or copy anything.

2. Abstraction Layer

This is where the magic happens. The abstraction layer creates a virtual version of your data, making it look clean and unified, no matter how messy or complex the sources are.

  • Instead of showing you the raw data tables or formats, this layer simplifies things by creating virtual views.
  • For example, if your data is spread across multiple systems, this layer can merge it into one logical view. Let’s say you have sales data in one database and customer data in another—this layer can create a virtual table that combines them, so it looks like a single source.
  • It doesn’t move or store the data—it just provides a seamless, virtual representation.

3. Consumption Layer

This is the user-facing layer that provides access to the unified data. It’s designed to make it easy for tools, applications and people to work with the data.

  • This layer makes the virtualized data available through tools and methods that users are already familiar with.
  • For instance, you can query the data using SQL or access it programmatically through APIs like REST or SOAP.
  • It also supports integration with tools like Tableau, Power BI, or Excel so you can use the data for dashboards, reports, or analytics.

Common Data Sources Virtualized through Data Virtualization Tools

These are the common data sources virtualized through data virtualization tools:

1. Databases

Data virtualization connects to:

  • Relational databases like MySQL, PostgreSQL, Oracle and SQL Server.
  • NoSQL databases like MongoDB, Cassandra and DynamoDB.

2. Cloud Platforms

Works with cloud services like AWS (Redshift, S3), Microsoft Azure (SQL Database, Blob Storage) and Google Cloud (BigQuery, Cloud Storage).

3. Data Lakes and Big Data

Supports data lakes like Amazon S3, Azure Data Lake, Hadoop, and Snowflake for handling large datasets.

4. APIs

Accesses external data through REST, SOAP and GraphQL APIs.

5. Files

Can work with data stored in files like CSV, Excel, JSON, XML or logs.

6. BI Tools

Integrates with reporting tools like Tableau, Power BI and Qlik to visualize data.

7. Enterprise Applications

Connects to systems like Salesforce, SAP, and Microsoft Dynamics for operational data.

8. ETL Tools

Complements tools like Informatica, Talend and MuleSoft in hybrid environments.

9. Governance Tools

Supports tools like Collibra and Alation for metadata management and compliance.

10. Data Science Tools

Provides data access for machine learning tools like Jupyter, Spark and TensorFlow.

Various industry sectors use data virtualization

The Data Virtualization is used in the following industry sectors:

1. Banking and Financial Services

Banks use data virtualization to pull together customer data, transactions, and risk reports from different systems. This helps them spot fraud in real-time, stay on top of compliance, and offer personalized financial products to their customers.

2. Healthcare

Hospitals and clinics bring together patient records, lab results, and billing info using data virtualization. This gives doctors a full view of patient health in real-time and helps researchers analyze clinical and genetic data more efficiently.

3. Retail and E-Commerce

Retailers use it to merge sales, inventory, and customer data from multiple platforms. This helps them track inventory in real time, optimize supply chains, and create personalized marketing offers for their customers.

4. Manufacturing

Manufacturers rely on it to combine production data, supply chain metrics, and IoT device information. This enables real-time monitoring of operations, predictive maintenance, and better logistics planning.

5. Telecommunications

Telecom companies integrate customer data, network performance metrics, and usage patterns. This helps improve service quality, monitor networks in real time, and offer personalized marketing based on customer behavior.

6. Government

Government agencies use it to connect data from different departments, making public services more efficient. It’s also used for emergency response, tax compliance, and improving public safety.

7. Energy and Utilities

Energy companies bring together data from IoT sensors, energy grids, and customer systems. This helps them monitor energy usage in real time, plan maintenance ahead of time, and optimize energy distribution.

8. Media and Entertainment

Media companies use it to merge audience data from streaming services, TV, and social media. This helps them understand viewer behavior, offer targeted ads, and recommend content people are likely to enjoy.

9. Pharmaceutical and Life Sciences

Pharma companies combine data from research labs, clinical trials, and regulatory systems to speed up drug development. It also helps them comply with regulations and manage their supply chains more effectively.

10. Insurance

Insurance companies use data virtualization to create a full picture of policyholders by combining claims data, risk assessments, and customer info. It also enables faster claims processing and better fraud detection.

Advantages of Data Virtualization

Data virtualization provides the following advantages:

  • Data virtualization enables real-time access to and manipulation of source data through the virtual/logical layer without physically relocating the data to a new location. ETL is typically not required.
  • Comparing the implementation of data virtualization to the construction of a separate consolidated store, the former takes less funding and resources.
  • There is no need to relocate the material, and access levels may be controlled.
  • Without worrying about a data type or where the data is located, users can build and execute whatever reports and analyses they require.
  • Through a single virtual layer, all corporate data is accessible to all consumers and use cases.

Conclusion

Data virtualization is a practical and modern approach to managing data from multiple sources. It allows organizations to access and analyze their data in real-time without physically moving or copying it. By creating a virtual layer, it simplifies how users interact with data, providing a unified and consistent view no matter where it’s stored or what format it’s in. From banking to healthcare, retail to manufacturing, data virtualization helps businesses make quicker, smarter decisions by reducing complexity and improving efficiency.


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