How Do Open Data Servers and Databases Help Optimize Performance in FinTech

Data is a piece or a large amount of information stored electronically. With so much information stored in different folders, this separation of data makes data storage inconsistent and tedious to access, edit, or replace.

That’s exactly where servers or databases come into the picture. With complex data and numbers pouring in on a daily basis, having a strong database or servers is crucial to managing it. A database is nothing but a collection of information in a structured way to allow for prompt readability, access, and editing. It is the center of the flow of data, as data flows from the database to other parts of the system.

The overall efficiency and success of any organization rely on practicing the right database management skills and ensuring its timely maintenance and optimization. To facilitate the health, availability, and performance of the database, an expert and knowledgeable database administrator is required.

Databases are the backbone of any enterprise, and thus it is imperative to have a highly sought-after DBA who implements best practices to manage and continually upgrade their skill set.

What Are Open Data Servers/Open Source Databases?

The craze around open data servers or databases has increased drastically. An open-source database is any database that comes with a codebase that can be opened, viewed, downloaded, or reused by anyone without any vendor lock-in. Here, the users are given the liberty through open source license to create a system based on their distinct requirements or business needs. The source code is free and can be modified under user preferences.

These servers or databases store vital information in software that is in control of the organization. Since there are no licensing fees involved in open data servers, the total cost of ownership (TCO) is considerably lower than commercial databases. 

This concept of open data servers is in contrast with proprietary databases where the code is completely secure to prevent copying. In closed source databases, the user has to pay subscription fees to allow the usage of databases within applications. The company curating the code maintains the codebase. The users have to wait for the company to introduce new features or resolve any bugs in the database management system.

How Are Open Data Servers in Hedge Funds Inappropriate?

Open-source databases benefit businesses in many ways; however, they come with their share of downside. From surged costs to compatibility issues, they come with a different set of challenges.

• Tedious to use: some open data servers are difficult to use and set up. They come with features and interfaces that are not user-friendly. Due to unfamiliarity with these features, the users might find them difficult to operate. This reduces productivity by preventing the users from adopting practices seamlessly.
• Compatibility problems: sometimes proprietary hardware needs specialized drivers to operate open-source programs that can only be purchased from the equipment manufacturer. This can further add up the expenses.
• Less security and warranty: along with proprietary databases, the developer offers indemnification and a long-term warranty as a part of a standard license agreement. That is because they have full control and copyright of the application along with the underlying code. However, the open data servers come with a license of the limited warranty and no liability.
• Unprecedented costs: Software that is available free at the up-front will always later run you into huge expenditure, especially if you haven’t taken into consideration the hidden costs.

Some of the types of costs involved in open data sources are as below:

• Setting up costs: there might be a requirement for new hardware to use the software.
• Training and installation: you might need to hire or pay someone to install the system for you. Also, you might need to train your staff to make them familiar with the system.
• It might get complex to integrate the open data servers with other applications.

Takeaway

Databases are important in this highly technical and evolving fin-tech world. With rising complexities and heavy calculations, a user needs to weigh and access everything for any software you intend to use.