Capterra Glossary
IT
Online Transaction Processing

Capterra Glossary

Online Transaction Processing

Online transaction processing (OLTP) is a database system paradigm for handling transactional data. In computing, a transaction is defined as a sequence of discrete actions that are treated as a single unit. For example, withdrawing money from a bank account is a transaction that involves multiple steps (debiting the first account and crediting the second). OLTP systems need to be atomic: if one step fails, the entire transaction should fail. They also need to be highly available, fast, and capable of handling potentially large amounts of concurrent transactions. The OLTP paradigm is contrasted with online analytical processing (OLAP), which is a database architecture for performing business queries and analytics.

What Small and Midsize Businesses Need to Know About Online Transaction Processing

Small and midsize businesses likely need both OLTP and OLAP databases in their IT ecosystem. OLTP systems support day-to-day business operations, while OLAP systems are intended for complex business intelligence and analytics.

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