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Data Virtualization vs. Data Federation

Data Virtualization takes the idea of the Data Federation one step further - both abstract data sources for the users but the virtual data adds logic in an effort to present coherent data structure to the clients. This ties directly into Master Data Management domain: no longer will you access columns and rows but you will access logical data entities which behind the scenes could be a composite construct. For example, virtualized "Customer" attributes might come from within a dozen of data sources defined as a part of "golden record".

In my opinion, this implies that any Data Virtualization effort must rest on form foundation of Master Data Management while Data Federation can skip this step as optional.