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Difference between Database Management System and Data Warehouse

Last Updated : 08 Feb, 2025
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Organizations use a variety of solutions in the field of data management to efficiently handle and analyze data. The Data Warehouse and Database Management System are two examples of such systems. Although both systems handle and store data, their functions and task-specific optimizations vary. While the Data Warehouse is made for evaluating large amounts of data to help in decision-making, the Database Management System is usually used for routine tasks including transactional processing. To choose the best for your data management requirements, it is important to understand the differences between these two.

What is Database Management System

Database Management System is used in the traditional way of storing and retrieving data. The major task of a database system is to perform query processing. These systems are generally referred to as online transaction processing systems. These systems are used in the day-to-day operations of any organization.

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DBMS

Read in detail about Database Management System.

What is a Data Warehouse

Data Warehouse is the place where huge amount of data is stored. It is meant for users or knowledge workers in the role of data analysis and decision making. These systems are supposed to organize and present data in different format and different forms in order to serve the need of the specific user for specific purpose. These systems are referred as online analytical processing.

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Data Warehouse

Read in detail about Data Warehouse.

Difference Between Database Management System and Data Warehouse

Feature

Database Management SystemData Warehouse

Purpose

It supports operational processesIt supports analysis and performance reporting.

Data Handling

Capture and maintain the dataExplore the data

Data Type

Current dataMultiple years of history

Date Scope

Data is balanced within the scope of this one systemData must be integrated and balanced from multiple system.

Update Frequency

Data is updated when transaction occursData is updated on scheduled processes.

Data Verification

Data verification occurs when entry is done.Data verification occurs after the fact.

Data Size

100 MB to GB.100 GB to TB.

Data Model

ER based.Star/Snowflake.

Orientation

Application oriented.Subject oriented.

Data Specificity

Primitive and highly detailed.Summarized and consolidated.

Storage Structure

Flat relationalMultidimensional

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