Data Virtualization – Overview
Data Virtualization is a data management approach that allows users to access, integrate, and
query data from multiple sources without physically moving or copying it.
Instead of relying on ETL pipelines and data replication, data virtualization creates a virtual
data layer that provides real-time access to information across diverse systems.
Key Idea
“Leave data where it is, but make it available as if it were all in one place.”
How Data Virtualization Works
1. Connect to different data sources
o Databases (SQL/NoSQL)
o Cloud storage
o APIs
o Data warehouses
o Legacy systems
2. Create a virtual layer
o Models data using metadata
o No need for data movement or duplication
3. Provide unified access through
o SQL queries
o APIs
o BI tools
o Data services
4. Execute queries in real time
o The virtualization engine fetches and federates data from underlying sources
o Optimizes queries and aggregates results
Why Data Virtualization Matters
Benefit Description
Queries underlying sources directly instead of relying on slow
Real-time access
ETL refreshes
Benefit Description
Reduced data movement No duplication → Lower storage cost
Faster time-to-insight Quick setup for analytics & reporting
Unified data view Combines structured, semi-structured, and unstructured data
Security and governance Centralized access control over distributed data
Supports modern
Cloud, hybrid, multi-cloud, APIs
architectures
Common Use Cases
1. Federated Reporting & BI
Combine data from ERP, CRM, cloud storage, and databases in real time for dashboards.
2. Logical Data Warehouse (LDW)
Acts as a virtual layer on top of a data lake and data warehouse.
3. Data Services for Applications
Expose data APIs without building complex integration pipelines.
4. Rapid Prototyping for Analytics
Deliver data fast without ETL delays.
5. M&A or Multi-Cloud Integration
Access data across different systems without consolidation.
Data Virtualization vs Traditional ETL
Feature Data Virtualization ETL / Data Warehouse
Movement No physical movement Data copied/transformed
Latency Real-time Scheduled batch
Performance Depends on source systems High (optimized storage)
Cost Lower storage More infrastructure
Complexity Lower Higher (pipelines, jobs)
Feature Data Virtualization ETL / Data Warehouse
Best for Real-time access Historical analytics, heavy computation
Both coexist: virtualization for real-time access + ETL for long-term storage & heavy
processing.
Key Components of a Data Virtualization
Platform
• Data source connectors
• Metadata & semantic layer
• Query optimization engine
• Data caching (optional)
• Data governance & security
• API & SQL interfaces
• Cataloging & lineage tools
Leading Data Virtualization Tools
• Denodo (market leader)
• IBM Cloud Pak / IBM Data Virtualization
• TIBCO Data Virtualization
• SAP HANA Smart Data Access
• Oracle Data Service Integrator (ODSI)
• Microsoft Synapse / Fabric data virtualization features
• Google BigQuery BI Engine + federated queries
• AWS Athena + federated connectors
Advantages
• Faster access to distributed data
• No need for complex ETL pipelines
• Reduced data redundancy
• Better governance and security
• Ideal for hybrid and multi-cloud setups
Limitations
• Performance depends on source systems
• Complex queries may run slower
• High concurrency can strain underlying databases
• Cache options may be required for large-scale analytics
• Not suited for deep historical analysis or ML training on huge datasets
When to Use Data Virtualization
Use DV when you need:
Real-time or near-real-time access
Unified view across many systems
Quick answers without building pipelines
On-demand data for dashboards or services
Multi-cloud or hybrid architecture
Avoid DV if you need:
Heavy, long-running analytical workloads
Large, historical datasets
Feature store or ML model training (ETL better)
Conclusion
Data virtualization is a powerful solution for real-time, unified data access without the
overhead of moving or replicating data.
It reduces complexity, accelerates analytics delivery, and supports modern cloud and hybrid
architectures—making it an essential component of today’s data ecosystem.
