Why are database management systems (DBMS) important in the business community?

Answer 1

Four or five years ago DBMS was just like a data store, with medium and large companies only looking at it as a tool for storing data. Then around three years ago it really moved into what is called the relational database space. This is where the concept of applications on databases came into the picture. In terms of users there has been a shift from meagre database administrators to developers to data warehouse managers and also towards business intelligence usage that involves a whole lot of people and not just CIOs. This means users have also evolved with the evolution of the product, its usage and market. Till the time it was a data store, database administrators could have managed it. But when it became a data warehouse, CIOs and skilled technical experts got involved. That is why DBMS is now an integral and crucial part of the overall IT policy of large enterprises. The importance of DBMS has come to fore especially after the adoption of ERP and CRM solutions. If you look at the top of the pyramid, for the top few IT spenders, DBMS has become as important as network infrastructure.
The database segment will continue to grow as businesses rely more and more on information as a source of competitive advantage. However, the market has definitely evolved over the years though it has not yet reached high maturity levels. As the SME segment has started adopting the technology, experts opine that there is going to be huge momentum in the market. The Indian SME market is no longer just a PC market; rather, it has become a well-networked and well-connected segment, which is why it has also started using servers. On the enterprise side one will witness a lot of momentum coming around solutions like application integration, business intelligence and reporting services.