Why do companies use database?


Quick Answer

Companies use databases to store customer data and other relevant information. Databases have largely supplanted paper storage methods, and many businesses are going paperless. Cloud systems that offer database functionality are become more popular for small businesses.

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Why do companies use database?
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Full Answer

Databases allow companies to store virtually any type of data. Their speed and relatively low cost makes them popular among businesses with large customer bases. Customer support representatives who have access to company databases can bring up customer information quickly, and some systems can even identify customers by their phone numbers. Customer databases allow companies to avoid the cost and inconvenience of dealing with paper records.

Companies also use databases because they can automate a number of procedures. Instead of having to verify financial transactions manually, employees can instead rely on computer reports. Instead of having to enter stock information by hand, people can take advantage of automatic updates. Speed and efficiency matter in the modern office, and databases help.

In the past, many small businesses would avoid databases due to their relatively high installation costs. Increasingly, however, small business owners and managers are using cloud-based systems that offer database functionality. Instead of having to install a custom server, people can sign up for services online and begin using their databases immediately.

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