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ETL vs ELT Data Processing Study Notes

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A comprehensive study guide covering cloud computing fundamentals, Azure services, data engineering, ETL and ELT, data warehousing, databases, cloud networking, storage, data pipelines, processing modes, analytics and Power BI. Ideal for students preparing for cloud computing assessments, Azure fundamentals, data engineering interviews, and business intelligence courses.

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Cloud Computing Study Guide - 01




Study Guide
Beginner → Exam Ready

By Levi J.
2026 Edition




ETL vs ELT: Data Processing Approaches


Overview
When extracting data from a source and ingesting it into a cloud data model system, there are two main
approaches depending on how the storage and transformation engines are connected:

ETL (Extract, Transform, Load)

ELT (Extract, Load, Transform)




ETL (Extract, Transform, Load)

Definition
ETL is a data processing workflow that processes data in a strict sequence:

1. Extract - Pulls data from various sources

2. Transform - Changes data according to business rules

3. Load - Loads it into a destination database


Why We Use ETL
By separating each phase into a distinct step, properly designed ETL pipelines can:

Process multiple sources in parallel

Save time and improve efficiency




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, Cloud Computing Study Guide - 01




ETL Process Phases

Phase 1: Extract
Goal: Pull raw data from disparate source systems and consolidate it

Staging Layer: A consolidated storage area where extracted data is placed to make it easier for
transformation tools to access without straining the source systems

How to Extract:

Incremental extractions: Pulling only the source data that has been recently inserted or updated,
which minimizes processing time

Full data extractions: Taking a complete copy of the source data, which takes longer but is necessary
if system records have changed


Phase 2: Transform
Goal: Clean the extracted data, remove any formatting inconsistencies, and shape it to the specific structure
required by the destination data model

Stage Transformations: To keep pipelines running efficiently, transformations are often divided into three
intermediate stages:

Bronze layer - Minimal transformations

Silver layer - Refined data where data is scrubbed of bad records and merged together

Gold layer - Final curated data for consumption


Phase 3: Load
Goal: Take the final curated data and load it into the destination tables

Schema-on-Write: The strict requirement that data must be shaped to perfectly match the destination tables'
preferred schema before it is loaded

How to Load:

Data can be loaded incrementally by adding new values to existing tables

If a full swap-and-replace is needed, the system will load the new data into a temporary staging table
first, then instantly swap it with the production table to ensure end-users never experience downtime or
any errors




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