Data and Business Intelligence Glossary Terms

Federated Database Systems

Federated Database Systems are a type of database management system that lets you access and work with data from multiple databases as if it were all contained in one single database. Picture a bunch of different storage boxes in various locations, each holding different toys. A Federated Database System would be like having a master key that opens all the boxes, allowing you to play with any toy you want without having to move them into one big box.

In business intelligence and data analytics, these systems are super handy because they allow the company to leave data in its original location, whether that’s across different departments or even different physical offices, without the need for merging everything into one spot. For example, a business could use a Federated Database System to combine customer information from their sales department with inventory data from their supply chain department, all without actually moving or copying the data.

This approach is particularly useful for organizations that need to analyze large and diverse datasets while maintaining data autonomy and privacy. Federated Database Systems provide flexibility in how data is managed and analyzed, making them a powerful tool for companies looking to glean insights from across various sources and locations.


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