The Basics: OLTP and OLAP

People are still confused when it comes to attributing what constitutes an OLTP or an OLAP system. The basic differentiation is based on the type of use and the function that the system will perform. The underlying technology or platform can be the same for both OLTP and OLAP systems, but the true differentiating factor is the logical function of the system itself.

If the system is continuously supporting the day-to-day requirements of the business (ATM’s, Checkout Systems, Order Processing, e-Commerce are all examples of OLTP systems.

OLAP systems are primarily the domain of business users who want to analyse the dynamics of the business in unique and innovative ways supported by the rich base of data that the organisation has accumulated through its OLTP systems. This can be analysis of customer usage patterns of the services offered by the company or it can be sales patterns of products based on marketing campaigns.

OLAP usage results in fewer transactions (database queries/transactions) but process huge volumes of data. OLTP systems typically process millions of transactions but process a microscopic amount of data.

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