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Data warehouse vs database

Short answer

Databases (OLTP) store current, detailed, normalized data for transactions; data warehouses store historical, summarized, denormalized data for analysis. Warehouses are subject-oriented, larger (GB-TB), support complex queries by few users; databases are application-oriented, smaller (MB-GB), handle many short transactions.

Differentiate between Data Warehouse and Database.

A database (operational/OLTP database) stores current data for day-to-day transactions. A data warehouse stores integrated historical data for analysis and decision making.

PointOperational database (OLTP)Data warehouse
PurposeDay-to-day transactionsAnalysis and decision support
DataCurrent, detailedHistorical, summarised and detailed
OrientationApplication-orientedSubject-oriented
UpdateFrequent insert/update/deletePeriodic bulk load, read-mostly
DesignNormalised (ER model)Denormalised (star/snowflake)
QueryShort, simple, predefinedComplex, ad hoc, aggregate
UsersClerks, DBAs (thousands)Managers, analysts (few)
SizeMB to GBGB to TB

Example: a bank's database records every deposit and withdrawal as it happens; its warehouse stores 10 years of summarised transactions to analyse customer behaviour.

✓ Answer checked by Claude Opus 5.5 (high effort)

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