In order to continue enjoying our site, we ask that you confirm your identity as a human. Thank you very much for your cooperation. Show Databases are important for every organization. Learn more about what databases are and the different types available. Good data is the cornerstone of any efficient operation — it uncovers valuable insights, informs decision-making and improves processes. It also records and tabulates activities and serves as a reference of record for all operations. But as companies collect more data, one of the biggest challenges they face is organizing and making sense of it all. This is where a database comes in. Whether you’re a frontline employee, a manager or a senior executive, learning about databases can help ensure that you have the right setup to fit your needs. In this article, we’ll explain what a database is and how it works. We’ll also cover the different types of databases available and how they’re used. Finally, we’ll look at the most popular database management systems on the market. A database is an organized collection of data stored in a computer. The most common types store data in rows and columns in a series of tables. This makes storing, managing and retrieving the data you need easier. Databases power nearly everything you do online and even offline to a certain extent. When you browse a social media platform like Facebook, data in your feed is pulled from a massive database. When you go grocery shopping, data about your purchases are entered into a database where they can be accessed and analyzed for insights. The type of data stored in a database depends on the application that’s using it. For example, a database for an online store might store: We can classify processing this data in two ways: Transactional databases are meant to record activities in real-time, record-by-record and form the backbone for digital applications of all kinds. Meanwhile, analytical databases are used to analyze data by aggregating and summarizing huge numbers of records at a time. No matter what type of data you’re working with, it’s important that you choose the right type of setup to fit your needs. For example, you’ll use an analytical database to store data like sales performance and inventory levels to run queries and create reports. Learn more about the differences between OLTP and OLAP systems here. A typical database is made up of five major components: Hardware, software, data, procedure and database access language. Let’s take a look at these components in more detail. HardwareHardware refers to the physical devices that house a database. It includes computers, servers, hard drives, processors and networking devices. SoftwareDatabase software lets you create, edit and manage files contained in your database. It handles reporting, multi-access control and security. Database software also includes the operating system and the network software used to share the data. DataData is the actual information that you’re storing in a database. There are three types of data you can store:
Data access languageData access language is the programming language that you use to access, update, delete and retrieve data in a database. The most common database language is Structured Query Language (SQL), which was originally developed in the 1970s by IBM. ProceduresFinally, procedures are a set of rules or instructions that you set for a database. These define how specific actions should be carried out. As more companies shift their processes to digital platforms, databases increasingly play a vital role in handling mission-critical data. Here are some of the different ways that companies use databases. Build applicationsNo matter what type of application you’re building, it needs a database. Take a simple calendar app — you’ll need a database to store data like events, start and end dates, notes and more. Record business transactionsCompanies deploy transactional databases to record transactions in real time. These types of databases are typically row stores, meaning that data is stored in rows instead of columns. Here’s a simple example of a transactional database: Businesses like retail stores, banks and restaurants use these types of databases as they offer a flexible solution for storing and managing data. Manage customer dataAs your company grows, relying on spreadsheets to track customer information just isn’t practical. Ninety-one percent of companies with 10 or more employees now use customer relationship management (CRM) software. CRM systems serve as a database that companies can use to manage and organize customer-related data. It’s all organized in one place, making it easier for teams to find the data they need without needing to switch between spreadsheets. Support business intelligenceBusiness intelligence helps companies gain valuable insights from their data and make informed decisions. Examples include analyzing performance metrics to find ways to optimize processes. To support these initiatives, companies rely on analytical databases specifically built to aggregate and process large volumes of data. They allow analysts to run queries and create detailed reports. There are two main types of databases: relational and non-relational. Understanding the strengths and weaknesses of each will help you choose the right one for your company. Relational databasesA relational database is also known as a SQL database. Relational database systems were first conceived and named in 1970 by Edgar F. Codd at IBM. They use SQL to manage data and perform queries. The data in a relational database is organized according to a schema — a “blueprint” that describes how it will store data. Relational databases are organized in rows and columns in a series of tables. The data within these tables relate to each other, hence why it’s called relational! For example, one table might contain customer information, and another table might contain related information like purchase orders. Information from multiple tables in a relational database are linked through “primary keys” — a unique value that identifies specific rows in a table. When a primary key is added to another table to link information, it’s called a “foreign key.” The primary key for this table is “CustomerID:”
Here’s another table that organizes invoices:
The second table references data in the first table two times. The “CustomerID” key is what makes this relationship possible. Of course, this is a rather basic example. Companies often deploy relational databases with hundreds or even thousands of tables that are all linked by primary and foreign keys. Popular relational databases include:
Advantages of relational databases:
Disadvantages of relational databases:
Non-relational databasesNon-relational databases are also known as NoSQL databases. Unlike relational databases that store data in tables, non-relational databases don’t have a common structured schema. Instead, data is stored in a non-tabular format. The advantage here is that you don’t need to define a data model upfront. If you’re working with datasets that aren’t clearly defined, meaning they’re not ordered or structured, non-relational databases offer a more flexible data storage solution than relational databases. There are four types of NoSQL databases: document, graph, key-value and column. Here’s a closer look at each:
Advantages of non-relational databases:
Disadvantages of non-relational databases:
Relational and non-relational databases have their strengths and weaknesses. Which one you choose will depend on the type of data you’re working with and its intended purpose. A database management system (DBMS) is software used to manage databases. It provides a user interface to store, access and manipulate data. With a DBMS, users can define the database’s structure, configure user accounts, monitor performance, manage backups, restore databases to a previous iteration and more. Database administrators can use a DBMS to limit what users can access. This prevents users from accessing data they’re not authorized to view. Here’s a look at the common types of DBMS. DistributedA distributed DBMS lets you manage a distributed database. It makes multiple databases appear and function as a single database. Any changes made to one database are also made to others in the network. HierarchicalA hierarchical database stores data in a tree-like or parent-child structure. The data is stored as records or nodes which are connected through links. A hierarchical DBMS lets you create and manage this type of database. (Image Source)NetworkA network DBMS lets you manage network databases, which is a model that allows records to be linked to multiple primary and secondary records. Interconnected data points within the network model support one-to-many and many-to-many relationships. RelationalA relational database management system (RDBMS) lets you store, manage and retrieve data in a relational database. It forms the basis for modern database systems like Microsoft SQL Server, Oracle and MySQL. Object-orientedAn object-oriented DBMS stores data in the form of objects. It works with an object-oriented programming language like Java to store and retrieve object-oriented data. It provides an object identifier, which makes it easy for users to quickly find the objects they need. Here we’ll look at the most popular DBMS worldwide. Many of these support both SQL and NoSQL data formats. While these are the most popular database management systems, the one you choose will depend on factors like the type of data you need to store, its intended purpose and more. Let’s take a look. 1. Oracle DatabaseOracle Database is a widely-used relational database management system developed and run by the Oracle Corporation. It supports SQL to interact with the database. While the company has traditionally offered RDBMS solutions, it also offers a NoSQL cloud data solution that lets developers build applications using various database models. Pros
Cons
Use case Oracle Database offers a great solution for online transaction processing (OLTP) and data warehousing. 2. MySQLMySQL is another widely used RDBMS. It was initially created and developed by MySQL AB before it was acquired by Sun Microsystems (which is now Oracle Corporation). Even though MySQL is open-source, it continues to receive frequent security and feature updates. Pros
Cons
Ideal for MySQL is ideal for building small, web-based applications. 3. Microsoft SQL ServerMicrosoft SQL Server (or SQL Server) is a commercial RDBMS designed and developed by Microsoft. It can be deployed on-premise or in the cloud. Developers use the Transact-SQL (T-SQL) language to interact with the SQL Server databases and manage or query their data. Pros
Cons
Ideal for Microsoft SQL Server is a good option if you’re looking for enterprise-level capabilities. 4. PostgreSQLPostgreSQL is a powerful, open-source DBMS that supports both relational and non-relational data formats. It’s compatible with most operating systems, including Linux. It works with both on-site and cloud-based servers. With its massive community, PostgreSQL continues to receive regular updates and new features. Pros
Cons
Ideal for PostgreSQL is a great choice for Online Transaction Processing (OLTP) because of its strong analytical capabilities and high ACID compliance. 5. MongoDBMongoDB is an open-source, document-based DBMS designed for applications that use unstructured data. It can also work with structured data, although it wasn’t initially built for this purpose. MongoDB connects databases with applications via database drivers. Pros
Cons
Ideal for MongoDB is a great option if you need a NoSQL document database for applications that don’t need a strict structure. Choosing a database management system will depend on various factors. Here are some things to consider:
At their core, databases are designed to store and retrieve data. But perhaps their greatest value is the insights that you can derive from querying them. Whether you’re looking to build a transactional database to record activities or an analytical database for business intelligence, you’ll need a way to pull data from different sources and load it into a destination of your choice. Fivetran offers powerful data source connectors that enable you to effortlessly centralize your data and derive valuable insights. There’s a good chance that your company is already storing transactional data like sales data in a database. Check out our “guide to effective transactional database analytics” to learn about the kind of analytics that are performed with these types of databases, common integration challenges and how Fivetran can help you address them. Join the thousands of companies using Fivetran to centralize and transform their data. Thank you! Your submission has been received! Oops! Something went wrong while submitting the form. Topics Share Databases are important for every organization. Learn more about what databases are and the different types available. Good data is the cornerstone of any efficient operation — it uncovers valuable insights, informs decision-making and improves processes. It also records and tabulates activities and serves as a reference of record for all operations. But as companies collect more data, one of the biggest challenges they face is organizing and making sense of it all. This is where a database comes in. Whether you’re a frontline employee, a manager or a senior executive, learning about databases can help ensure that you have the right setup to fit your needs. In this article, we’ll explain what a database is and how it works. We’ll also cover the different types of databases available and how they’re used. Finally, we’ll look at the most popular database management systems on the market. What is a database?A database is an organized collection of data stored in a computer. The most common types store data in rows and columns in a series of tables. This makes storing, managing and retrieving the data you need easier. Databases power nearly everything you do online and even offline to a certain extent. When you browse a social media platform like Facebook, data in your feed is pulled from a massive database. When you go grocery shopping, data about your purchases are entered into a database where they can be accessed and analyzed for insights. The type of data stored in a database depends on the application that’s using it. For example, a database for an online store might store:
We can classify processing this data in two ways:
Transactional databases are meant to record activities in real-time, record-by-record and form the backbone for digital applications of all kinds. Meanwhile, analytical databases are used to analyze data by aggregating and summarizing huge numbers of records at a time. No matter what type of data you’re working with, it’s important that you choose the right type of setup to fit your needs. For example, you’ll use an analytical database to store data like sales performance and inventory levels to run queries and create reports. Learn more about the differences between OLTP and OLAP systems here. Components of a databaseA typical database is made up of five major components: Hardware, software, data, procedure and database access language. Let’s take a look at these components in more detail. HardwareHardware refers to the physical devices that house a database. It includes computers, servers, hard drives, processors and networking devices. SoftwareDatabase software lets you create, edit and manage files contained in your database. It handles reporting, multi-access control and security. Database software also includes the operating system and the network software used to share the data. DataData is the actual information that you’re storing in a database. There are three types of data you can store:
Data access languageData access language is the programming language that you use to access, update, delete and retrieve data in a database. The most common database language is Structured Query Language (SQL), which was originally developed in the 1970s by IBM. ProceduresFinally, procedures are a set of rules or instructions that you set for a database. These define how specific actions should be carried out. What are databases used for?As more companies shift their processes to digital platforms, databases increasingly play a vital role in handling mission-critical data. Here are some of the different ways that companies use databases. Build applicationsNo matter what type of application you’re building, it needs a database. Take a simple calendar app — you’ll need a database to store data like events, start and end dates, notes and more. Record business transactionsCompanies deploy transactional databases to record transactions in real time. These types of databases are typically row stores, meaning that data is stored in rows instead of columns. Here’s a simple example of a transactional database: Businesses like retail stores, banks and restaurants use these types of databases as they offer a flexible solution for storing and managing data. Manage customer dataAs your company grows, relying on spreadsheets to track customer information just isn’t practical. Ninety-one percent of companies with 10 or more employees now use customer relationship management (CRM) software. CRM systems serve as a database that companies can use to manage and organize customer-related data. It’s all organized in one place, making it easier for teams to find the data they need without needing to switch between spreadsheets. Support business intelligenceBusiness intelligence helps companies gain valuable insights from their data and make informed decisions. Examples include analyzing performance metrics to find ways to optimize processes. To support these initiatives, companies rely on analytical databases specifically built to aggregate and process large volumes of data. They allow analysts to run queries and create detailed reports. Relational vs. non-relational databases: What's the difference?There are two main types of databases: relational and non-relational. Understanding the strengths and weaknesses of each will help you choose the right one for your company. Relational databasesA relational database is also known as a SQL database. Relational database systems were first conceived and named in 1970 by Edgar F. Codd at IBM. They use SQL to manage data and perform queries. The data in a relational database is organized according to a schema — a “blueprint” that describes how it will store data. Relational databases are organized in rows and columns in a series of tables. The data within these tables relate to each other, hence why it’s called relational! For example, one table might contain customer information, and another table might contain related information like purchase orders. Information from multiple tables in a relational database are linked through “primary keys” — a unique value that identifies specific rows in a table. When a primary key is added to another table to link information, it’s called a “foreign key.” The primary key for this table is “CustomerID:”
Here’s another table that organizes invoices:
The second table references data in the first table two times. The “CustomerID” key is what makes this relationship possible. Of course, this is a rather basic example. Companies often deploy relational databases with hundreds or even thousands of tables that are all linked by primary and foreign keys. Popular relational databases include:
Advantages of relational databases:
Disadvantages of relational databases:
Non-relational databasesNon-relational databases are also known as NoSQL databases. Unlike relational databases that store data in tables, non-relational databases don’t have a common structured schema. Instead, data is stored in a non-tabular format. The advantage here is that you don’t need to define a data model upfront. If you’re working with datasets that aren’t clearly defined, meaning they’re not ordered or structured, non-relational databases offer a more flexible data storage solution than relational databases. There are four types of NoSQL databases: document, graph, key-value and column. Here’s a closer look at each:
Advantages of non-relational databases:
Disadvantages of non-relational databases:
Relational and non-relational databases have their strengths and weaknesses. Which one you choose will depend on the type of data you’re working with and its intended purpose. What is a database management system (DBMS)?A database management system (DBMS) is software used to manage databases. It provides a user interface to store, access and manipulate data. With a DBMS, users can define the database’s structure, configure user accounts, monitor performance, manage backups, restore databases to a previous iteration and more. Database administrators can use a DBMS to limit what users can access. This prevents users from accessing data they’re not authorized to view. Here’s a look at the common types of DBMS. DistributedA distributed DBMS lets you manage a distributed database. It makes multiple databases appear and function as a single database. Any changes made to one database are also made to others in the network. HierarchicalA hierarchical database stores data in a tree-like or parent-child structure. The data is stored as records or nodes which are connected through links. A hierarchical DBMS lets you create and manage this type of database. (Image Source)NetworkA network DBMS lets you manage network databases, which is a model that allows records to be linked to multiple primary and secondary records. Interconnected data points within the network model support one-to-many and many-to-many relationships. RelationalA relational database management system (RDBMS) lets you store, manage and retrieve data in a relational database. It forms the basis for modern database systems like Microsoft SQL Server, Oracle and MySQL. Object-orientedAn object-oriented DBMS stores data in the form of objects. It works with an object-oriented programming language like Java to store and retrieve object-oriented data. It provides an object identifier, which makes it easy for users to quickly find the objects they need. 5 popular database management systemsHere we’ll look at the most popular DBMS worldwide. Many of these support both SQL and NoSQL data formats. While these are the most popular database management systems, the one you choose will depend on factors like the type of data you need to store, its intended purpose and more. Let’s take a look. 1. Oracle DatabaseOracle Database is a widely-used relational database management system developed and run by the Oracle Corporation. It supports SQL to interact with the database. While the company has traditionally offered RDBMS solutions, it also offers a NoSQL cloud data solution that lets developers build applications using various database models. Pros
Cons
Use case Oracle Database offers a great solution for online transaction processing (OLTP) and data warehousing. 2. MySQLMySQL is another widely used RDBMS. It was initially created and developed by MySQL AB before it was acquired by Sun Microsystems (which is now Oracle Corporation). Even though MySQL is open-source, it continues to receive frequent security and feature updates. Pros
Cons
Ideal for MySQL is ideal for building small, web-based applications. 3. Microsoft SQL ServerMicrosoft SQL Server (or SQL Server) is a commercial RDBMS designed and developed by Microsoft. It can be deployed on-premise or in the cloud. Developers use the Transact-SQL (T-SQL) language to interact with the SQL Server databases and manage or query their data. Pros
Cons
Ideal for Microsoft SQL Server is a good option if you’re looking for enterprise-level capabilities. 4. PostgreSQLPostgreSQL is a powerful, open-source DBMS that supports both relational and non-relational data formats. It’s compatible with most operating systems, including Linux. It works with both on-site and cloud-based servers. With its massive community, PostgreSQL continues to receive regular updates and new features. Pros
Cons
Ideal for PostgreSQL is a great choice for Online Transaction Processing (OLTP) because of its strong analytical capabilities and high ACID compliance. 5. MongoDBMongoDB is an open-source, document-based DBMS designed for applications that use unstructured data. It can also work with structured data, although it wasn’t initially built for this purpose. MongoDB connects databases with applications via database drivers. Pros
Cons
Ideal for MongoDB is a great option if you need a NoSQL document database for applications that don’t need a strict structure. Choosing a database management system will depend on various factors. Here are some things to consider:
Centralize your data with Fivetran's powerful connectorsAt their core, databases are designed to store and retrieve data. But perhaps their greatest value is the insights that you can derive from querying them. Whether you’re looking to build a transactional database to record activities or an analytical database for business intelligence, you’ll need a way to pull data from different sources and load it into a destination of your choice. Fivetran offers powerful data source connectors that enable you to effortlessly centralize your data and derive valuable insights. There’s a good chance that your company is already storing transactional data like sales data in a database. Check out our “guide to effective transactional database analytics” to learn about the kind of analytics that are performed with these types of databases, common integration challenges and how Fivetran can help you address them. Join the thousands of companies using Fivetran to centralize and transform their data. Thank you! Your submission has been received! Oops! Something went wrong while submitting the form. |