Data warehousing is basically the formation of an electronic repository to store data for later use. This is a very comprehensive technology that covers many areas within the organizations. There are many advantages of using data warehousing. The first and foremost advantage is that in data warehousing all the information that needs to be stored is brought to a central location to be stored. This reduces redundancy for example an organization has various departments and each department will not have to maintain the record of an employee, instead the data can be stored in a central location. It also has the advantage that instead of keeping fragmented information; the data warehouse can store extensive and detailed data. It takes lesser storage space physically as the data now exists virtually and is more efficient. It can be retrieved easily when required using queries instead of sorting all the data manually. It also helps in the analysis of data in a better manner because complete information provides more details.