11/03/2024, 23:50 OLTP vs OLAP - Difference Between Data Processing Systems - AWS

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11/03/2024, 23:50 OLTP vs OLAP - Difference Between Data Processing Systems - AWS

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What’s the difference between OLAP and OLTP?

Online analytical processing (OLAP) and online transaction processing (OLTP) are data
processing systems that help you store and analyze business data. You can collect and store
data from multiple sources—such as websites, applications, smart meters, and internal systems.
OLAP combines and groups the data so you can analyze it from different points of view.
Conversely, OLTP stores and updates transactional data reliably and efficiently in high volumes.
OLTP databases can be one among several data sources for an OLAP system.

Read about OLAP »

What are the similarities between OLAP and OLTP?

Both online analytical processing (OLAP) and online transaction processing (OLTP) are database
management systems for storing and processing data in large volumes. They require efficient
and reliable IT infrastructure to run smoothly. You can use them both to query existing data or
store new data. Both support data-driven decision-making in an organization.

Most companies use OLTP and OLAP systems together to meet their business intelligence
requirements. However, the approach to and purpose of data management differ significantly
between OLAP and OLTP.

Key differences: OLAP vs. OLTP

The primary purpose of online analytical processing (OLAP) is to analyze aggregated data, while
the primary purpose of online transaction processing (OLTP) is to process database transactions.

You use OLAP systems to generate reports, perform complex data analysis, and identify trends.
In contrast, you use OLTP systems to process orders, update inventory, and manage customer
accounts.

Other major differences include data formatting, data architecture, performance, and
requirements. We’ll also discuss an example of when an organization might use OLAP or OLTP.

Data formatting

OLAP systems use multidimensional data models, so you can view the same data from different
angles. OLAP databases store data in a cube format, where each dimension represents a
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11/03/2024, 23:50 OLTP vs OLAP - Difference Between Data Processing Systems - AWS

different data attribute. Each cell in the cube represents a value or measure for the intersection
of the dimensions.  
In contrast,
Get OLTP systems
Started are unidimensional and focus on one data aspect.
for Free They
Contact Ususe a
relational database to organize data into tables. Each row in the table represents an entity
instance, and each column represents an entity attribute.

Data architecture

OLAP database architecture prioritizes data read over data write operations. You can quickly
and efficiently perform complex queries on large volumes of data. Availability is a low-priority
concern as the primary use case is analytics.

On the other hand, OLTP database architecture prioritizes data write operations. It’s optimized
for write-heavy workloads and can update high-frequency, high-volume transactional data
without compromising data integrity.

For instance, if two customers purchase the same item at the same time, the OLTP system can
adjust stock levels accurately. And the system will prioritize the chronological first customer if
the item is the last one in stock. Availability is a high priority and is typically achieved through
multiple data backups.

Performance

OLAP processing times can vary from minutes to hours depending on the type and volume of
data being analyzed. To update an OLAP database, you periodically process data in large
batches then upload the batch to the system all at once. Data update frequency also varies
between systems, from daily to weekly or even monthly.

In contrast, you measure OLTP processing times in milliseconds or less. OLTP databases manage
database updates in real time. Updates are fast, short, and triggered by you or your users.
Stream processing is often used over batch processing.

Read about streaming data »

Read about batch processing »

Requirements

OLAP systems act like a centralized data store and pull in data from multiple data warehouses,
relational databases, and other systems. Storage requirements measure from terabytes (TB) to
petabytes (PB). Data reads can also be compute-intensive, requiring high-performing servers.

On the other hand, you can measure OLTP storage requirements in gigabytes (GB). OLTP
databases may also be cleared once the data is loaded into a related OLAP data warehouse or
data lake. However, compute requirements for OLTP are also high.

Example of OLAP vs. OLTP

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11/03/2024, 23:50 OLTP vs OLAP - Difference Between Data Processing Systems - AWS

Let's consider a large retail company that operates hundreds of stores across the country. The
company has a massive database that tracks sales, inventory, customer data, and other key  
metrics.
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The company uses OLTP to process transactions in real time, update inventory levels, and
manage customer accounts. Each store is connected to the central database, which updates the
inventory levels in real time as products are sold. The company also uses OLTP to manage
customer accounts—for example, to track loyalty points, manage payment information, and
process returns.

In addition, the company uses OLAP to analyze the data collected by OLTP. The company’s
business analysts can use OLAP to generate reports on sales trends, inventory levels, customer
demographics, and other key metrics. They perform complex queries on large volumes of
historical data to identify patterns and trends that can inform business decisions. They identify
popular products in a given time period and use the information to optimize inventory budgets.

When to use OLAP vs. OLTP

Online analytical processing (OLAP) and online transaction processing (OLTP) are two different
data processing systems designed for different purposes. OLAP is optimized for complex data
analysis and reporting, while OLTP is optimized for transactional processing and real-time
updates.

Understanding the differences between these systems can help you make informed decisions
about which system meets your needs better. In many cases, a combination of both OLAP and
OLTP systems may be the best solution for businesses that require both transaction processing
and data analysis. Ultimately, choosing the right system depends on the specific needs of your
business, including data volume, query complexity, response time, scalability, and cost.

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11/03/2024, 23:50 OLTP vs OLAP - Difference Between Data Processing Systems - AWS

Summary of differences: OLAP vs. OLTP  

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Criteria OLAP OLTP

OLAP helps you analyze large volumes OLTP helps you manage and process
Purpose
of data to support decision-making. real-time transactions.

OLTP uses real-time and

OLAP uses historical and aggregated
Data source transactional data from a single
data from multiple sources.
source.

OLAP uses multidimensional (cubes) or

Data structure OLTP uses relational databases.
relational databases.

OLAP uses star schema, snowflake OLTP uses normalized or

Data model
schema, or other analytical models. denormalized models.

OLTP has comparatively smaller

Volume of OLAP has large storage requirements.
storage requirements. Think
data Think terabytes (TB) and petabytes (PB).
gigabytes (GB).

OLAP has longer response times, OLTP has shorter response times,
Response time
typically in seconds or minutes. typically in milliseconds

OLAP is good for analyzing trends, OLTP is good for processing

Example
predicting customer behavior, and payments, customer data
applications
identifying profitability. management, and order processing.

How can AWS support your OLAP and OLTP

requirements?
Analytics on Amazon Web Services (AWS) provides various managed cloud services for online
analytical processing (OLAP) and online transaction processing (OLTP) operations. From data
movement, data storage, data analytics, and more, AWS offers purpose-built services that
provide the best price performance, scalability, and lowest cost.

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11/03/2024, 23:50 OLTP vs OLAP - Difference Between Data Processing Systems - AWS

Here are examples of AWS services that can support your OLAP and OLTP needs:
 
Amazon Redshift is a cloud data warehouse designed specifically for OLAP.
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Amazon Relational Database Service (Amazon RDS) is a relational database with OLAP
functionality. You can use it to run OLTP workloads or with Oracle OLAP to perform complex
queries on dimensional cubes.

Amazon Aurora is a MySQL- and PostgreSQL-compatible cloud relational database that can
run both OLTP and complex OLAP workloads.

Get started with OLTP and OLAP on AWS by creating an AWS account today.

Next Steps with AWS

Start building with OLAP

Learn how to get started with OLAP on AWS

Start building with OLTP

Learn how to get started with OLTP on AWS

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11/03/2024, 23:50 OLTP vs OLAP - Difference Between Data Processing Systems - AWS

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