We express that what is difference between database and data warehouse? with definition and comparison table. In today’s fast-moving technology environment, the most important aspect is the data or information that forms the backbone of any organization. The database and the data warehouse are two commonly used systems for managing data. Although they both perform the same data management task, there is a spring difference between these two concepts as they serve different purposes and use different technologies in data management.
The difference between the database and the data warehouse is that the database is used to record data or information, while the data warehouse is mainly used for data analysis.
However, the above is not the only difference. A comparison between both terms on certain parameters can shed light on subtle aspects:
Comparison table between database and data warehouse (in tabular form)
Comparison database datastore parameter
| Sense | An organized collection of data that is stored and accessed electronically. | System used to store, retrieve, manage, report and analyze large amounts of any type of data |
| For what purpose? | To store data | For data analysis |
| Procedure used | Data is captured / completed | Data is examined / analyzed |
| Processing method | Online transactional processing | Online analytical processing |
| Techniques / methods | ER modeling procedures | Data modeling procedures |
| Data storage | Flat relational focus technique | Snowflake dimensional method |
| Decision making | It is not used much as it only involves data storage. | Very useful as it analyzes the data. |
| Query types | Simple | Complex |
| Where is it commonly used? | It is used in almost all industries such as banking, finance, healthcare, telecommunications, aviation, however use will be limited to data storage, customer records, invoices, stock information and sales. | It is used in almost all industries, such as banking, finance, telecommunications, and aviation; however, it will be used to analyze information, predict results, study patterns or behaviors, and aid in decision-making in general. |
What is the database?
The database is usually a large collection of data organized systematically in columns and rows. In other words, the database can be thought of as a collection of pieces of information that is organized and used in a computer / system. The database is the foundation or initial phase of data construction or analysis.
The database will generally contain data or information organized in columns, rows, and tables. Data can be periodically updated or indexed as needed to make it easier to access or retrieve. Organizations use database management systems (DBMS) to store customer, inventory, finance, sales, or human resource information.
The database offers multiple benefits such as easy search and retrieval, security features, data sharing, multiple views, support for multi-user frameworks, and multi-transaction processing. Most importantly, the database follows the ACID (Atomicity, Consistency, Isolation, and Durability) compliance model that avoids duplicate processing and other errors.
The database is not without cons. Some of the characteristics of a database that make it an option that is not worth it for many include the cost of implementation, which is quite high for large amounts of data, the complexity of some databases, which again increases the cost of understanding and training, and compatibility issues. with other systems.
The database may not be able to perform complex operations / calculations and data analysis and therefore decisions based on the data stored in the database cannot be made.
What is Data Warehouse?
The data warehouse is a system or method used to analyze and manage large amounts of data. The data warehouse can be viewed as information or documentation configured to store and analyze large and complex volumes of current and historical data.
Data Warehouse collects data from multiple sources, analyzes it, and helps generate reports for management purposes. The data to be analyzed can be from a single or multiple applications or sources. Data Warehouse uses complex queries to generate custom analytical reports.
The data warehouse is primarily used to report, condense, analyze, and integrate data for decision-making purposes. Data Warehouse includes advanced methodologies to enable fast searches, advanced filters, and accurate analysis. The data warehouse can be considered as a Single Version of the Truth (SVOT) for an organization regarding analysis and decision making. The data stored in a data warehouse is non-volatile, which means that it will not be erased when new data is added.
Data Warehouse is not without its shortcomings. Some of the common Data Warehouse problems include the high costs associated with implementation, maintenance and training as it is complicated. The data warehouse takes too much time for certain activities, such as loading and extracting data, adding new data, or updating existing data.
Key differences between data warehouse and database
- A database is used for data storage. The data warehouse is used for data scrutiny and analysis.
- The database uses the online transactional processing (OLTP) method to store data. Data Warehouse uses the online analytical processing (OAP) method for data analysis.
- The database is commonly used to carry out operational aspects of the business. Data Warehouse touches the deepest aspects of the business, that is, the analysis of data for decision making.
- The use of the database can be restricted to a single application. The use of the data warehouse can involve multiple applications.
- The database will use simple query types. The data warehouse involves complex queries due to analysis requirements.
- The database will normally have data that is always new. The data warehouse may not always have up-to-date data.
Final Thought
The database and data warehouse are distinguished by their data management capabilities. Both offer multiple but different sets of benefits and have certain disadvantages. The database will help with basic business operations, while the data warehouse will be critical to interpreting the data for decision purposes. Therefore, it is important to assess these aspects and also individual / organizational / divisional needs before deciding to adopt a database or data warehouse.
A prudent option would be to start with Database and then move on to Data Warehouse or alternatively implement not too complex systems in the initial data management phase, especially if the data involved is not too large or complex.
Thorough practical understanding and advice is suggested, especially from data management specialists, to reap the full benefits of database or data warehouse implementation. The most important focal point that should always be kept in perspective is whether the implemented system will serve the ultimate purpose of the organization.
