AWS Redshift is a cloud data warehouse solution that allows companies to scale storage without deploying on-premise infrastructure, launched in February 2013. It offers significant cost savings over traditional options, approximately 10% of the cost, but the primary motivation for its adoption is the removal of constraints and the ability to leverage AWS's partnership network and limitless scalability. This flexibility enables organizations to prepare for emerging data use cases and avoid capacity bottlenecks as their data processing needs increase.