OLTP vs. OLAP
This article explains the differences between OLTP and OLAP technology. It helps you to further understand the use cases of our technology and why we chose OLAP for data analysis.
What is OLTP?
Definition
Online Transaction Processing, shortly known as OLTP, supports transaction-oriented applications under a 3-tier architecture (could be a 3NF approach). OLTP usually administers day-to-day transactions through a relational database.
Usage Examples
OLTP usage can be found in every consumer-market approach. Some of the daily use cases for transactional processing are as follows:
- Payment: using a debit or credit card, online or offline payment.
- Online Transaction: any reservation, ticketing, and booking system which requires the OLTP methods.
- ATM and Online Banking: cash withdrawals or online banking operations represent simple day-to-day transactions.
- Record Entry: store data like a student’s score record, products in the warehouse, or customer service ticketing systems requiring fast-paced management.
- and many more…
What is OLAP?
Definition
OLAP stands for Online Analytical Processing and provides data analysis for business decisions. With OLAP, users can get information on multiple databases and data types with the ability to analyze them at the same time, even with complex queries.
Usage Examples
OLAP method can be found in every part of business, especially in data analytics. Some of the usage examples are:
- Niche: it can be seen on a personalized homepage, on the e-commerce page, movie streaming app, and on any other platform that fits users’ unique needs or preferences.
- Sales Analytic: usually used to compare sales in a different period which is stored in separate databases.
- Customer Behavior: helps in determining customer behavior in some industries.
- Trend Analysis: provide statistical analysis across several sectors to assist in decision-making.
- and many more…
The Microsoft Excel and Microsoft SQL Server’s Analysis Services are also using OLAP features!
OLTP & OLAP Comparison
The table below outlines the main differences between OLTP & OLAP:
| Parameters | OLTP | OLAP |
|---|---|---|
| Stands for | Online Transactional Processing | Online Analytical Processing |
| Process | A transactional mechanism for controlling database modifications. | Online analysis and data retrieving process. |
| Characteristic | Large numbers of online transactions characterize it. | A large volume of data characterizes it. |
| Method | Traditional DBMS. | Data warehouse. |
| Database normalization | Normalized | Unnormalized or denormalized |
| Operation | INSERT, DELETE and UPDATE commands. | Mostly SELECT operations. |
| Response Time | Milliseconds | Seconds to minutes (It depends on the data amount that has to be processed) |
| Storage size | Small database | Large database |
| Response | It offers quick results for frequently utilized data. | It offers a consistently faster response to requests. |
| Audience | Market-oriented information. | Customer-oriented information. |
OLAP vs. OLTP: Key Differences
- OLAP analyzes data stored in a database, while OLTP supports transaction-oriented operations.
- OLAP handles all business and data analysis, while OLTP is usually used to administer daily transactions.
- OLAP can integrate different data sources, while OLTP uses traditional DBMS.
Conclusion
The OLTP and OLAP, both, deal with information in their discipline. While OLTP is useful for business operations, OLAP is advantageous for analyzing data and providing important information for a business’ growth.
We certainly want significant business growth, and OLAP is a system you should consider. One of the finest recommended database management systems which can help is Oxla. Oxla will help you achieve your goal with a fast-distributed analytical database and robust analytical processing!