Glossary

Data Lakehouse

A data lakehouse combines the flexibility of a data lake with the structure and performance of a data warehouse, providing a unified platform for analytics, AI, and data activation.

CDP.com Staff CDP.com Staff 8 min read

A data lakehouse is a modern data architecture that merges the best capabilities of data lakes and data warehouses into a single, unified platform. By combining the low-cost storage and flexibility of data lakes with the structured query performance and ACID transaction guarantees of data warehouses, the lakehouse architecture eliminates the need to maintain separate systems for different workloads.

What is a Data Lakehouse?

A data lakehouse is a modern data architecture that merges the best capabilities of data lakes and data warehouses into a single, unified platform. By combining the low-cost storage and flexibility of data lakes with the structured query performance and ACID transaction guarantees of data warehouses, the lakehouse architecture eliminates the need to maintain separate systems for different workloads.

The term “data lakehouse” emerged in response to organizations struggling with the limitations of traditional two-tier architectures, where raw data lands in a data lake and then gets copied into a data warehouse for analytics. This duplication creates data silos, increases costs, introduces latency, and complicates data governance. A lakehouse architecture stores all data in open file formats on low-cost object storage while providing warehouse-like capabilities through a metadata and transaction layer.

Popular data lakehouse platforms include Databricks (which coined the term), Snowflake (with its hybrid architecture), and open-source implementations built on Apache Iceberg, Delta Lake, or Apache Hudi table formats. These platforms enable organizations to run SQL analytics, real-time dashboards, machine learning training, and data science workloads on the same underlying data without movement or duplication.

Data Lakehouse vs Data Warehouse vs Data Lake

Understanding the differences between these three architectures helps clarify why the lakehouse model has gained traction:

Data Warehouse: Traditional data warehouses like Teradata, Oracle, or cloud-native options like Snowflake and BigQuery excel at structured analytics. They enforce schema-on-write, meaning data must conform to a predefined structure before loading. This provides fast query performance and data quality guarantees but limits flexibility. Data warehouses typically store data in proprietary formats, making it difficult to use the same data for machine learning or other non-SQL workloads. They also become expensive at scale.

Data Lake: Data lakes, built on technologies like Hadoop HDFS or cloud object storage (S3, Azure Data Lake, GCS), store raw data in open formats like Parquet, Avro, or JSON. They use schema-on-read, allowing flexibility to store any data type without predefined structure. While cost-effective and versatile, data lakes often become “data swamps” due to poor governance, lack of ACID transactions, and slow query performance. Running SQL analytics on raw data lake files requires separate query engines like Presto or Athena.

Data Lakehouse: The lakehouse architecture combines the strengths of both approaches. It stores data in open formats on low-cost object storage (like a data lake) but adds a metadata and transaction layer (like a data warehouse) to enable ACID transactions, schema enforcement, time travel, and efficient query performance. This unified approach supports both structured BI analytics and unstructured AI/ML workloads on the same data, eliminating the need for complex data pipelines to move data between systems.

Key Features

Modern data lakehouse platforms share several fundamental capabilities:

ACID Transactions: Unlike traditional data lakes, lakehouses support atomicity, consistency, isolation, and durability through table formats like Delta Lake, Apache Iceberg, or Hudi. This ensures data reliability for concurrent reads and writes, preventing issues like partial updates or dirty reads that plague basic data lake implementations.

Schema Enforcement and Evolution: Lakehouses enforce schema constraints to maintain data quality while allowing schemas to evolve over time. This schema-on-write capability, borrowed from data warehouses, prevents bad data from entering the system while retaining the flexibility to adapt to changing business requirements.

Open Data Formats: By storing data in open formats like Parquet with metadata layers (Delta Lake, Iceberg), lakehouses avoid vendor lock-in. The same data can be accessed by multiple tools and engines—Spark for data integration, SQL engines for analytics, Python for machine learning—without proprietary format conversions.

Time Travel and Versioning: Lakehouses maintain complete data lineage and version history, enabling queries against historical snapshots. This supports audit requirements, rollback capabilities, and reproducible analytics—critical for both compliance and ML model training.

Unified Governance: With all data in one platform, lakehouses simplify governance compared to managing separate lake and warehouse systems. Role-based access controls, data lineage tracking, and compliance policies apply consistently across all workloads.

How Data Lakehouses Relate to CDPs

The relationship between data lakehouses and customer data platforms is evolving rapidly, especially with the rise of composable CDP architectures. Traditional packaged CDPs store customer data in proprietary databases, creating yet another data silo. In contrast, composable CDPs leverage the organization’s existing data lakehouse as the foundation for customer data.

A lakehouse can serve as the central customer data repository, with CDP vs data warehouse distinctions blurring as organizations build CDP capabilities directly on top of their lakehouse infrastructure. Customer profiles, event streams, and behavioral data reside in the lakehouse in open formats, while specialized tools layer on top for identity resolution, segmentation, and activation.

This architecture enables powerful workflows: customer data flows from various sources through data pipelines into the lakehouse, gets unified and enriched, and then activates to downstream marketing and analytics tools via reverse ETL. The lakehouse serves as the single source of truth, eliminating redundant storage and ensuring consistency across all customer touchpoints.

Organizations using Databricks or Snowflake as their data lakehouse can build composable CDP architectures using tools like Hightouch, Census, or native reverse ETL capabilities to activate customer segments directly from lakehouse tables to marketing platforms. This approach provides CDP functionality while maintaining data in open, accessible formats.

AI’s Impact on Data Lakehouses

Artificial intelligence and machine learning have become primary drivers for lakehouse adoption. Traditional data warehouses, optimized for SQL analytics, struggle with the computational requirements and data access patterns needed for AI workloads. Data lakehouses excel in this domain.

AI/ML Training on Lakehouse Data: Training machine learning models requires access to large volumes of raw, historical data in flexible formats. Lakehouses store the full history of customer interactions, product data, and operational metrics in formats like Parquet that ML frameworks can consume directly. Data scientists can use Spark, TensorFlow, or PyTorch to train models on the same data that analysts query for BI reports, eliminating the need to export data into separate ML environments.

Feature Stores: Modern lakehouse platforms integrate with or provide feature store capabilities, which manage the features (input variables) used in ML models. A feature store built on a lakehouse can serve both training (batch) and inference (real-time) workloads from the same underlying data. This ensures consistency between the features used to train a model and those used in production, reducing the “training-serving skew” that degrades model accuracy.

For customer data use cases, lakehouse-based feature stores enable sophisticated AI applications like next-best-action recommendations, churn prediction, and personalization—all powered by the comprehensive customer data already residing in the lakehouse. The open architecture means models trained in the lakehouse can serve predictions via APIs to CDPs, marketing automation platforms, or directly to customer-facing applications.

FAQ

What is the difference between a data lake and a data lakehouse?

A data lake stores raw data in open formats on low-cost storage but lacks transaction guarantees, schema enforcement, and optimized query performance. A data lakehouse adds a metadata and transaction layer on top of data lake storage, providing ACID transactions, schema management, and warehouse-like query speeds while retaining the flexibility and cost benefits of data lake architecture. Think of a lakehouse as a data lake with the governance and performance capabilities of a data warehouse.

Can a data lakehouse replace my existing data warehouse?

For many organizations, yes. Data lakehouses like Databricks and Snowflake provide SQL query performance comparable to traditional data warehouses while offering additional capabilities for AI/ML and unstructured data. However, the migration decision depends on your specific workloads, existing investments, and performance requirements. Some organizations adopt a hybrid approach, using lakehouses for raw data and ML workloads while maintaining warehouses for specific high-performance analytics use cases. The trend is toward lakehouse consolidation as the technology matures.

How does a composable CDP architecture use a data lakehouse?

A composable CDP leverages a data lakehouse as the central storage and processing layer for customer data, rather than using a proprietary CDP database. Customer data from all sources lands in the lakehouse through data integration processes, gets unified and enriched using lakehouse processing capabilities, and then activates to marketing and analytics tools via reverse ETL. This architecture provides CDP functionality—identity resolution, segmentation, activation—while keeping data in open formats that any tool can access, eliminating vendor lock-in and data silos inherent in traditional packaged CDPs.

  • Data Warehouse — Structured analytics platform that lakehouses aim to unify with data lakes
  • Data Fabric — Architectural layer that can orchestrate access across lakehouses
  • Data Modeling — Defines schemas and relationships within lakehouse tables
  • ETL and ELT — Processing patterns used to load and transform lakehouse data
CDP.com Staff
Written by
CDP.com Staff

The CDP.com staff has collaborated to deliver the latest information and insights on the customer data platform industry.