Data & Analytics

Data lakehouse

Also known as: lakehouse, lakehouse architecture

A data lakehouse is a data architecture that stores data cheaply in open file formats, like a data lake, but adds the reliable tables, transactions, and fast queries of a data warehouse.

The goal is one copy of data that serves both business reports and machine learning. While 'lakehouse' started as a Databricks marketing term, the open table formats underneath it have reshaped how almost every data platform works.

Data lakehouse, explained at three levels

At home

Think of a huge self-storage unit where you can dump boxes of anything cheaply, versus a tidy library with a catalogue. The storage unit is cheap but hard to search; the library is organized but costly. A data lakehouse is a storage unit with a librarian: data sits in cheap storage, but a catalogue tracks every item so it can be found and used like a library.

At work

A data lakehouse is a data platform that keeps information in cheap cloud storage, like a data lake, while adding the reliable tables and fast queries of a data warehouse. One copy of data serves both business reports and machine learning, rather than being copied between separate systems. Businesses care because it cuts storage costs, removes copy jobs, and reduces arguments over mismatched numbers.

Real-world examples

At home

Sophie took an online data engineering course that used a free lakehouse setup. She loaded public transit data as Parquet files, queried it with SQL, and trained a simple delay-prediction model on the same tables.

At work

Thomas is the head of data at a Canadian grocery chain that ran a warehouse for sales reports and a separate data lake for forecasting. Consolidating on a lakehouse removed nightly copy jobs and ended arguments about whose sales numbers were right.

How it compares

featureData lakehouseData warehouseData lake
Storage costLow, open files in object storageHigher, proprietary storageLow
ReliabilityTransactions and schemasStrongWeak
WorkloadsBI, data science, AIMostly BI and SQLData science and raw storage
Vendor lock-inLower with open formatsHigherLow

The lakehouse aims for warehouse reliability at lake prices.

For analysts

Before a lakehouse migration, I'd ask how many copies of the same data you're paying to store and reconcile today. That number, and the arguments it causes in meetings, is usually the strongest business case.

History & origin

Data warehouses dominated analytics from the 1990s. James Dixon of Pentaho coined 'data lake' in 2010 for cheap storage of raw data, often on Hadoop, but lakes became 'data swamps' without structure or reliability. Uber created Apache Hudi around 2016, Netflix created Apache Iceberg in 2017, and Databricks open-sourced Delta Lake in 2019, each adding database-like tables on top of files. Databricks popularized the term 'lakehouse' in 2020 and published an academic paper on it in 2021. By 2024, Snowflake, Google, AWS, and Microsoft all supported open table formats, and Databricks bought Iceberg's commercial steward, Tabular. In my view, the lakehouse won less because of one product and more because customers refused to keep paying to copy data between systems.