A database refers to a collection of relevant information that represents specific elements for reference.

It is generally designed and filled with information for particular tasks. It is the foundation of all your data solutions needed for daily operations.

The need for a database 

  • The following are key reasons for using a sound database system
  • Promotes access and security of information or data
  • Get multiple tools to retrieve and store data 
  • Balances the need for several apps that use data from the same source 
  • With the help of an expert in database management systems, you can restrict access to data to unauthorized persons.
  • Get access to the data concurrently so that only one user can view the same information at a single point of time

Understanding Data Warehouse 

A Data Warehouse refers to system information where commutative and historical data is stored from several or a single platform. The system has been designed in such a manner to help in analyzing, reporting, and integrating data from transactions from multiple sources. The following are the key features of a data warehouse-

  • Helps in analyzing, reporting and integrating data from transactions that have been derived from several sources
  • Business users can view this data on a single platform 
  • Get consistent data on several cross-functional tasks 
  • Assists you to integrate on several sources of information to mitigate stress on production systems 
  • Decrease the Total Turnaround Time, commonly referred to as TAT in businesses for reporting and the analysis of data
  • Save time from retrieving data from several sources. Business users can get access to all the data they want from different places on one platform. Data from Cloud technologies can also be accessed quite easily.
  • Allow historical data storage that helps you analyze different trends and periods for making predictions in the future
  • Improves CRM systems and the total value of business apps in daily operations 
  • Distinguishes processing of analytics from all transactional database systems to boost the performance and speed of both the above systems 
  • Get accurate reports from a data warehouse. Stakeholders and regular users of the system can get quality information they need from one platform. 

Differences betweenthe Database and Data Warehouse 

Experts from the esteemed company in the USA, RemoteDBA state databases, and a data warehouse have many differences. The following table gives you an insight into them-

Traits DatabaseData Warehouse
Aim Has been created and designed to store data records Has been created and designed for analyzing data 
Method for processing Uses OLTP or Online Transactional ProcessingUses OLAP or Online Analytical Processing 
Uses Permits basic operations for the business Permits analyzing your business 
Tables & Joins Normalized in nature. This is why they are complex Denormalized in nature making them simple 
Orientation It focuses on application collection of information or data Concentrates on subject collection of information or data 
Limits for Storage Limited in general to a single applicationCan store data from many applications 
Accessibility Real-time data available Data is generally refreshed from the source as and when required 
Use Usestechniques of ER Modeling for designDeploys techniques of data modeling for design 
Techniques Captures the data Analyzes the data 
Type of Data The storage of data is always up-to-date Stores present as well as historical data. However, the data might not always be up-to-date
Query Simple queries for transactionsComplex queries for analysis 
Data Storage Uses the Flat Relational ApproachUses normalized and dimensional approaches for data structure
Summary of data Extensive data is stored in the database system Summarized data is stored in a data warehouse.
   

Take some time to research and understand the difference between the two. Select the one that best suits your business requirements. 

Now, you know about the differences between a database and a data warehouse. When it comes to selection, you need to understand their critical disadvantages before making the final choice. Check them out below-

Disadvantages of the database system 

  1. Databases are expensive. This is because you need to invest in hardware and the related software that your business needs. This often incurs a lot of expenses and increases the budget of a company.
  2. If you carefully examine DBMS systems, you will find they are quite complicated. You must ensure you have trained experts for looking after your database. Moreover, they should be qualified and prepared with the latest technologies for database support, security, and administration.
  3. If you need to perform any sophisticated calculations for your business’s needs, your database will fail at this task. It cannot perform advanced calculations.
  4. There is a possibility of the database system you choose not to be compatible with the organization’s current systems. This gives rise to significant issues that need immediate resolution.
  5. If appropriate precautionary steps are not taken, owners of a database system will lose complete control of the system’s data. This is primarily due to security, privacy, and ownership problems.

Now, let us look at the disadvantages of a data warehouse system.

  • If you want to add any new data source or sources, you need to incur a high cost.
  • There can be issues with the data warehouse that might go undetected for several years. 
  • data warehouse might look simple to you, but in reality, it is very complicated for the average user. This means you need to ensure the end-user of the data warehouse is trained to use the system. If you cannot, they just will not be able to understand data mining and use the system.
  • No matter how much effort you place in project management, the data warehouse will increase as its scope is enormous.

So, what will work best for you? You should understand the above comparative analysis clearly to understand a database and a data warehouse. The former helps you perform the essential functions of your business, whereas the latter is an excellent system to help you analyze it. When it comes to successful business operations, choose any one of them to meet your goals with success!