Database software can fall into several sub-categories depending on its use. For example, you wouldn’t want to analyze sensitive company data using a database program that’s shared with external users. Instead, you’ll want to pick a database program from the following categories that more closely fits your needs.
Analytical database software
Companies use analytical database software to understand their performance. These programs extract data from a number of separate databases to assess different aspects of the business. Users can examine things like employee performance, financial growth, and the success of marketing campaigns.
Analytical database software is great for managing big data, offering quick query responses and the ability to search through multiple categories of data at once. Because the software doesn’t commit changes to the data within the databases, analytical database programs can process information much faster than operational database software. Organizations in highly-regulated industries need features like this because the analysis doesn’t obscure the audit trail.
Distributed database software
Distributed database software manages a set of databases that are copied and dispersed across multiple locations and communicate via the internet. It’s thought to be the safest of the four types because there are so many redundancies built into the system. Each database is stored in a variety of different locations, including the cloud and company servers. The software controls the database stored in each of these locations and makes it easier to share data and ensure the accuracy of that data.
Distributed database software is similar to distributed ledger technology and is critical for financial institutions or other businesses who need a secure way to share data and ensure the integrity of that data. There is one master file, and the system periodically synchronizes the copies to match that master file.
External database software
External database software is used when companies need a variety of users to have access to information. It’s considered external because no one company actually owns everything on the database. Several organizations work together to build it, and sometimes they make it available to outside businesses for a subscription or licensing fee. This type of database management software is cloud-based, allowing users to view the data via the internet. External database programs are helpful for companies with many office locations that need to share data.