Understanding the Difference between Database and Data Warehouse

Understanding the Difference between Database and Data Warehouse

What is the difference between a database and a data warehouse? In terms of the name itself, maybe you can already see that there are quite striking differences. Both of them are used as data storage media. But in terms of definition, it is different. Curious about this information? Check out the full summary below.

Definition of Database and Data Warehouse

To see the difference between the two, you should first identify their definition. Let’s start with the database.

The database is collections of data in the form of files, archives, to tables that are arranged systematically. This collection of data is interconnected and stored in electronic media. With this condition, it is easier for users to manage and find the data information.

The database can provide speed and convenience in selecting data. This condition makes searching and getting the required information easier to find in a short time. Unfortunately, the quickness also depends on the database design. Not all databases have the same speed.

Then, the database is also used in the central server. However, accessing the data can be done from several other computers. This technology makes the company’s work processes that require controlling and updating data can be much easier. Another advantage of using a centralized database is that it is cost-effective because there is no need to purchase multiple databases for more computers.

In contrast, the notion of a data warehouse is a collection of data from various sources stored in a large capacity data warehouse for the decision-making process. And yes, the data is stored by subjects, such as product sales, product storage, and product transportation.

Since the stored data covers a wide range of operational systems, differences may occur. This difference can be in terms of data attributes, data measurements, and others. This condition makes these differences must be equated according to standards so that the data can be integrated.

Read Also: Know the Purpose of Data Management for Your Business

Difference between Database and Data Warehouse

From the explanation above, now it can be described how the difference between database and data warehouse is:

  • The database is used in OLTP and can be maximized for data warehouse needs. On the contrary, the data warehouse is used in OLAP so that it can read historical data in the decision-making process.
  • The data warehouse has simple tables and joins to reduce response times and analytical queries. For the database, tables and combinations in them are very complex, which can reduce the redundant data while saving storage space.
  • The database can organize and process the data in detail, so it is easier to use it in the decision-making process. The historical data in the data warehouse is vast and requires several facilities to add up the total sales from various areas, time periods, and others.
  • The database is customer-focused so that it can be maximized for jobs such as cashiers and IT professionals. Data warehouses are more market-focused that makes them suitable for use by professions with high-level data analysis skills.
  • The database system uses entity-relationship data modeling and application-oriented design. A data warehouse system focuses on snowflake or star data modeling and uses a subject-oriented design.

That’s the explanation of the definition and differences between a database and a data warehouse. Hopefully, this information can be helpful for you, and don’t forget to contact AdIns if you need a business solution by providing the best software.

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Published date :

22 July 2021