Where do you build analytical content: database or BI tool? The Pros and Cons of building analytical logic in the database Layer vs. the BI layer.
When designing a data analytics system, one of the critical decisions involves where to place your analytical logic: in the database layer (e.g., stored procedures, views, or materialized queries) or in the Business Intelligence (BI) tool (e.g., Tableau, Power BI, or Looker). Both approaches have distinct advantages and drawbacks, and the right choice often depends on the use case and technical ecosystem. Below is a breakdown of the pros and cons of implementing analytical logic in the database layer.
Aspect
Pros of Database Layer
Cons of Database Layer
Performance Optimization
Databases handle large data volumes efficiently using indexing, caching, and query optimization.
Analytical processing may increase database load, affecting transactional performance.
Centralized Logic
Ensures a single source of truth for calculations across multiple tools.
Changes to logic require development effort, reducing agility.
Reusability
Logic can be reused across applications, ETL processes, and BI tools.
Complex maintenance is required for large systems with interdependent views or scripts.
Version Control
Robust mechanisms for version control, logging, and auditing exist in most database systems.
Requires expertise to implement and manage version control effectively.
Tool Independence
Not limited by BI tool capabilities, enabling complex transformations and advanced logic.
Heavy reliance on specialized SQL and database skills.
Scalability
Optimized for handling large datasets and complex operations.
Scaling a database cluster can be costlier and more complex compared to BI tools’ caching or in-memory solutions.
Agility
Less prone to errors across tools due to centralized logic.
Iterative changes are slower due to the need for development and deployment cycles.
Skill Dependency
Centralized control by skilled DB administrators ensures high-quality logic.
Limited access to non-technical users who cannot interact with or modify the database logic.
The choice between building analytical logic in the database layer versus the BI tool is not one-size-fits-all. In many cases, a hybrid approach works best: use the database for foundational, reusable logic and delegate lightweight, visual, or ad-hoc calculations to the BI tool. By carefully evaluating your performance, scalability, and team skillset needs, you can strike the right balance and build an analytics system that meets your organization’s goals.
The data slice 
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