Not being a recent technological development, multidimensional databases and database management systems have been in use since the 1970's. Their theoretical underpinnings have been available since the 1960's. What is new is the identification of hybrid database systems that optimize retrieval and processing speed for on-line analytical processing applicatons. Pilot Software, SAS and Cognos are examples of companies whose core competencies are in the area of OLAP applications front ending data marts and data warehouses. This same technology is used for many companies' ERP systems.
Multidimensional databases allow for the clustering of data along two or more axes.
The matrix is populated with sales data. Given a database of sufficient size, and due to normalization, this information would more than likely be broken up into many tables that would require hours to respond to a query that involved retrieving multiple numbers and aggregate them. The multidimensional database would be able to complete the same query in a manner of seconds. It is capable of adding up numbers in rows and columns at a rate of 10,000 per second. The key to this consistently fast response is consolidation.