What is ELT (extract, load, and transform)?

In today's data-driven landscape, organizations continually seek more efficient ways to manage and analyze vast quantities of information. The ELT, or extract, load, transform, process represents a modern approach to data integration, particularly well-suited for cloud environments. Understanding ELT is key for anyone involved in data architecture, data engineering, or analytics, as it can offer distinct advantages in speed, flexibility, and scalability for handling diverse datasets. This approach shifts when and where data transformation occurs, unlocking new possibilities for data utilization.

ELT defined

ELT stands for extract, load, and transform. It’s a data pipeline model where data is first extracted from various source systems. Then, instead of being transformed in a separate staging area, the raw data is directly loaded into a target data store, such as a data lake or a cloud data warehouse. Only after the data is loaded into the target system are the transformations applied.

This sequence differentiates ELT from its predecessor, ETL (extract, transform, load), and is a key reason for its growing adoption in cloud-native architectures.

How does ELT work?

The ELT process flow capitalizes on the power and scalability of modern data storage and processing platforms. Let’s break down each component:

  • Extract: This initial step involves collecting raw data from its original sources. These sources can be incredibly diverse, including databases (SQL and NoSQL), enterprise applications (like CRMs and ERPs), SaaS platforms, APIs, and log files. The extraction process focuses on getting the data out of these systems efficiently.
  • Load: In the second step, the extracted raw data is loaded, often in its original format or with minimal processing, directly into a high-capacity storage system. Common targets for this raw data are cloud data lakes or modern cloud data warehouses that can handle large volumes of structured, semi-structured, and unstructured data.
  • Transform: This final step occurs after the data is safely housed in the target system. Using the computational power of the data warehouse or data lake, the raw data is cleaned, structured, enriched, and converted into a format suitable for analytics, reporting, and machine learning. Transformations can include filtering, joining, aggregating, standardizing formats, and deriving new data points.

The ELT process offers flexibility because transformations are not fixed before loading. Data scientists, for instance, can access the raw data to explore unforeseen patterns or conduct ad-hoc analyses, while business intelligence teams can build curated, transformed datasets for reporting.

Benefits of ELT

The ELT approach offers several potential advantages, particularly in environments dealing with large data volumes and diverse data types:

  • Faster data ingestion: Loading raw data into the target system is generally quicker than waiting for transformations to complete in a staging area. This means data can become available for initial exploration or specific use cases much sooner.
  • Flexibility and agility: Because raw data is preserved in the target system, transformations can be iteratively developed, modified, or added as business requirements evolve. There's no need to re-ingest data from source systems if a transformation logic changes; you simply re-run the transformation on the already-loaded raw data.
  • Scalability: Modern cloud data warehouses and data lakes are designed for massive scalability. ELT leverages this inherent capability by performing transformations using the robust processing engines of these target systems. This allows organizations to handle growing data volumes and complex transformations efficiently.
  • Preservation of raw data: Storing raw data allows for a more complete historical record. This can be invaluable for data auditing, re-processing if errors are found in previous transformations, or for future analytical needs that aren't yet anticipated. Data scientists often benefit from having access to the most granular, untransformed data.
  • Cost efficiency for certain workloads: Using the computing power of a cloud data warehouse for transformations can sometimes be more cost-effective than maintaining separate infrastructure or licensing specialized ETL tools for transformations, especially when the data warehouse offers optimized processing.
  • Support for diverse data types: ELT can be well-suited for handling structured, semi-structured (like JSON or XML), and unstructured data (like text or images). Data can be loaded in its native format and transformed as needed, which can be a significant advantage in big data scenarios. This "schema-on-read" approach, where the structure is applied during processing rather than before loading, is a hallmark of ELT.

Challenges of ELT

While ELT offers several benefits, it also can present certain considerations that organizations should seek to address:

  • Data governance and security: Loading raw data, which might contain sensitive or personally identifiable information (PII), into a data lake or data warehouse requires robust data governance, security, and compliance measures. Access controls, encryption, and data masking techniques are critical to protecting this data within the target environment.
  • Transformation complexity within the target system: While powerful, managing complex transformation logic directly within a data warehouse (for example, using SQL) or data lake can become challenging. It requires skilled personnel proficient in these tools and a disciplined approach to code management and optimization.
  • Tooling and orchestration: Effective ELT implementation relies on appropriate tooling for orchestrating the extract and load steps, and for managing and executing transformations within the target system. While many cloud platforms offer tools, integrating them and managing the overall workflow need careful planning.
  • Potential for "data swamps": If raw data loaded into a data lake isn't properly cataloged, managed, and governed, the data lake can turn into a "data swamp" where data is hard to find, trust, or use effectively. A strong data management strategy is crucial.
  • Data quality responsibility: Since transformations occur later in the process, ensuring data quality might require dedicated steps post-load. Monitoring and validating data within the target system become important.

Addressing these challenges proactively can help organizations fully capitalize on the advantages of the ELT paradigm.

ELT vs. ETL

Understanding the distinction between ELT and the more traditional ETL (extract, transform, load) process is important for choosing the right data integration strategy. The primary difference lies in when the transformation step occurs and where it's performed.

Feature

ELT (extract, load, transform)

ETL (extract, transform, load)

Order of operations

Extract, then load, then transform

Extract, then transform, then load

Transformation location

Within the target data store (data warehouse/lake)

In a separate staging area or ETL tool environment

Data loaded to target

Raw, untransformed data

Cleaned, structured, transformed data

Processing power


Leverages power of the target data store

Relies on dedicated ETL engine or staging server


Data ingestion speed


Typically faster to load data initially

Can be slower due to upfront transformation processing


Flexibility for new uses


High, as raw data is available for re-transformation

Lower, as transformations are pre-defined

Schema handling

Well-suited for schema-on-read

Often relies on schema-on-write

Data type suitability


Excellent for structured, semi-structured, and unstructured data

Best for structured, some semi-structured data

Resource utilization

Optimizes use of scalable cloud data warehouses

May require separate infrastructure for transformations


Feature

ELT (extract, load, transform)

ETL (extract, transform, load)

Order of operations

Extract, then load, then transform

Extract, then transform, then load

Transformation location

Within the target data store (data warehouse/lake)

In a separate staging area or ETL tool environment

Data loaded to target

Raw, untransformed data

Cleaned, structured, transformed data

Processing power


Leverages power of the target data store

Relies on dedicated ETL engine or staging server


Data ingestion speed


Typically faster to load data initially

Can be slower due to upfront transformation processing


Flexibility for new uses


High, as raw data is available for re-transformation

Lower, as transformations are pre-defined

Schema handling

Well-suited for schema-on-read

Often relies on schema-on-write

Data type suitability


Excellent for structured, semi-structured, and unstructured data

Best for structured, some semi-structured data

Resource utilization

Optimizes use of scalable cloud data warehouses

May require separate infrastructure for transformations


ELT is Google Cloud's recommended pattern for data integration. ELT involves extracting data from source systems, loading it into BigQuery, and then transforming it into the desired format for analysis. Unlike ETL (extract, transform, load), which involves transforming data before it is loaded into a data warehouse, the ELT approach enables you to use the full power of BigQuery to perform data transformations and any SQL user to effectively develop data integration pipelines.

The choice between ELT and ETL often depends on specific use cases, existing infrastructure, data volumes, and the analytical needs of the organization. In many modern data architectures, a hybrid approach, using both ELT and ETL for different parts of the pipeline, may also be employed.

Use cases of ELT

The ELT pattern is particularly effective in a variety of modern data scenarios:

Cloud data warehousing

ELT is a natural fit for cloud data platforms like Google Cloud's BigQuery , which offer immense processing power and scalability to handle transformations on large datasets efficiently.

Big data analytics

When dealing with massive volumes, high velocity, and wide varieties of data, ELT allows for quick ingestion into a data lake or scalable storage. Transformations can then be applied as needed using distributed processing frameworks.

Data lake implementation

Data lakes are designed to store vast amounts of raw data in its native format. ELT processes load this raw data, and various analytics and processing engines can then transform and consume it.

Real-time or near real-time data processing

For use cases requiring quick access to fresh data, ELT can expedite the loading phase. Transformations for specific near real-time dashboards or applications can then be performed on subsets of this data.

Exploratory data analysis and data science

Data scientists often prefer access to raw, untransformed data to perform feature engineering, build machine learning models, and uncover insights without being constrained by pre-defined transformations. ELT makes this raw data readily available.

Consolidating diverse data sources

When integrating data from numerous disparate systems with varying structures, ELT simplifies the initial ingestion by loading everything into a central location first, then harmonizing it through transformations.

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How Google Cloud uses ELT

Google Cloud provides a comprehensive suite of services that help optimize ELT architectures, allowing organizations to build robust and scalable data pipelines. The focus is on using the power of services like BigQuery for in-database transformations.

Here’s how Google Cloud services are typically employed in ELT patterns:

  • Extraction: Data can be extracted from numerous sources using services like Dataflow for batch and stream data processing, Dataproc for Spark and Hadoop workloads, or directly via connectors and APIs into Google Cloud services. Pub/Sub can be used for ingesting real-time streaming data.
  • Loading: The extracted raw data is commonly loaded into Cloud Storage , which acts as a highly scalable and durable data lake. From Cloud Storage, data can be efficiently loaded into BigQuery, Google Cloud's serverless, highly scalable, and cost-effective multicloud data warehouse. Data can also be streamed directly into BigQuery.
  • Transformation: This is where the "T" in ELT shines on Google Cloud. BigQuery is designed to perform complex transformations at petabyte scale using standard SQL. Its powerful processing engine handles joins, aggregations, window functions, and other transformations directly on the data stored within it. Users can also develop user-defined functions (UDFs) in JavaScript or leverage BigQuery ML for in-database machine learning. The raw data often remains in Cloud Storage or separate BigQuery tables, allowing for versatile re-transformation.

Google Cloud’s infrastructure supports the core tenets of ELT by providing scalable storage for raw data, fast loading capabilities, and a powerful engine within BigQuery to perform transformations efficiently. This allows data engineers to build pipelines where data is quickly landed and then refined based on specific analytical requirements, all within a managed, serverless environment.

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