The amount of data generated grows more and more every day, and it has shown no signs of stopping. In fact, with the increase in the number of internet users, 90 percent of the world's data has been created in the last two years. Data may be important to businesses, but rapid data growth can create a number of problems, such as poor application performance and compliance risks. As the volume of data grows, there is an increasing need for database management systems (DBMS) to handle business data. 

What Is Database Management?

A database management system (DBMS) is a software tool that helps organize, store and retrieve data from a database. It involves a number of functions that collectively work together to ensure that the data is accurate, available and accessible. 

A database management system consists of three main elements:

  1. A physical database that contains the data.
  2. A database engine that helps to access the data and modify its contents.
  3. A database scheme which provides the logical structure of the data stored in the database.

Types of Database Management Systems

Centralized Database Management System

All the data is stored in one system and in one place. Anyone who wants to access the data has to come to that system physically.

Distributed Database Management System

The data can reside in a variety of nodes, which makes it easier to access them as compared to  centralized database systems. A distributed DBMS replicates data among different servers so that even if one system fails, the data is not lost.

Federated Database Management System

A federated database system maps multiple autonomous databases into one large system. It removes the need to duplicate the source data, which is followed in a distributed DBMS. This type of database architecture is best when handling distributed integration projects. 

Federated databases are further divided into two types:

  • Loosely Coupled - Each component database constructs their own federated schema. 
  • Tightly Coupled - The component systems use independent processes to construct and publicize an integrated federated schema.

Blockchain Database Management System

A blockchain is also referred to as a database because it is a digital ledger that stores information in data structures called blocks. This database system is mostly used to manage financial and other types of transactions.

Cloud Database Management System

A cloud database management system is a type of distributed database that delivers Cloud-as-a-Service (CaaS). The resources, software, information, and other data are shared over a network. The cloud serves as the main storage location where people can access the data from anywhere in the world.

Importance of Data Management

Data is one of the most important assets for businesses. It can be used to make strategic business decisions, improve marketing campaigns and optimize business operations. However, if there is no proper database management system, an organization can face a number of problems such as data silos, inconsistent data sets and poor quality of data that can lead to faulty findings.

There are a number of reasons why businesses need database management. Here are some of the most important reason why:

  • To run business operations
  • To automate processes
  • To ensure adequate performance of queries
  • To keep up with consumer demands
  • To organizing and track customers, inventory, and employees
  • To store different types of data

Another reason why database management has grown in importance to businesses is due to the increasing number of compliance requirements from data protection laws such as GDPR, CCPA, etc.

Benefits of Database Management

There are a number of benefits that database management systems provide to businesses.

Self-describing Nature

A database system is self-describing because it not only contains data, but also metadata about the data. This self-describing nature of DBMS makes it totally different from a traditional file-based system.

Supports Multiple View of Data

A database system can have multiple views for multiple users in the system. Each of these views can contain only the data of interest to one user or a group of users.

Multi-user System

Many users can access the same database subsequently, which is achieved through concurrency control strategies. These strategies ensure the data is always correct and data integrity is maintained.

Restriction of Unauthorized Access

Each user of the database system can have different access privileges. For example, one user might have read-only access while another might have read and write privileges. This restricts unauthorized access and provides internal data control as well.

Best Database Management Tools

Every organization needs a well-designed database management tool which is crucial to the success of a business. There are countless tools, frameworks and platforms to help organizations manage their data. Here are some of the most popular ones that you can choose from based on your organization’s requirements:

1. Solarwinds Database Performance Analyzer


  • Supports machine learning
  • Supports cross-platform database
  • Expert tuning advisors
  • Cloud database support
  • Automation management API

2. Oracle RDBMS


  • Secured
  • Occupies less space
  • Supports large databases
  • Reduces CPU time to process data

3. IBM DB2


  • Supports multiple Windows, UNIX, and Linux versions
  • Easy to install and set up
  • Data is easily accessible

4. Altibase


  • Hybrid DBMS
  • Provides scale-out technology and sharding

5. Microsoft SQL Server


  • Works on Linux and Windows OS
  • Compatible with Oracle
  • Provides efficient management of workload

6. SAP Sybase ASE


  • Can perform millions of transactions in a minute
  • Using database, mobile devices can be synchronized

7. Teradata


  • Works on Linux and Windows OS
  • Easy data import and export
  • Easy distribution of data
  • Multiple processing is possible at the same time
  • Easy distribution of data
  • Useful for very large databases



  • Runs on Windows and Unix, Linux OS
  • The speed of data processing is fast (irrespective of the load)
  • Output of any transaction is reliable
  • Architecture is quite flexible and keeps pace with the changing demands

9. MySQL


  • Works on Linux and Windows OS
  • High speed processing
  • Use of triggers increases productivity

10. Filemaker


  • Works on Mac, Unix, Linux, Windows OS
  • Can be connected across platforms
  • Connections to SQL are possible
  • Information sharing is easier because of cloud
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Go Beyond Basics - Here’s How

With the rising amount of data and the advances in technological developments, the demand for database management professionals is expected to rise. Among the database management solutions, cloud computing databases are becoming extremely popular due to its ability to cut down in-house IT resources. Simplilearn’s Post Graduate Program in Cloud Computing in collaboration with the Caltech CTME, is designed to help you become an expert in designing, planning, and scaling cloud implementation. This is a career-focused course that will help you master key architectural principles and enhance your skills as a cloud expert.

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