Data warehousing provides a central repository of information available to all users within and trusted users outside of your corporate networks. Centralization of resources permits a greater level of security (Physical and Storage), reliability and availability. This provides an efficient way to manage demand from lots of users accessing information and query analysis on the data for reporting purposes, for example.
Data Warehouses can then be optimized to function most effectively with collective queries running on large amounts of data, reducing the cost of rationalization of hardware and subsidiary systems and services.