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Understanding DBAmp for a newbie

As a noob's noob, i wanted to understand the tool and where it can fit in my firm. I am fluent in SQL, but not in SOQL, or open query. Is it best practice to create the linked server connection, and then take a copy of the SF tables into a DB and then create a warehouse , reports etc. its my understanding that SOQL and open query is being used to run directly on salesforce live. Any guidance would be appreciated to get me started
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