OLAP and OLTP are online processing systems. However, there are prominent differences between them. OLAP and OLTP vary in their data, transaction, time, queries, and normalisation.
OLAP refers to an Online Analytical Processing system. In contrast, OLTP refers to the Online Transaction Processing system. There are several other differentiating factors between the two.
Key Takeaways
- OLAP (Online Analytical Processing) focuses on complex data analysis, while OLTP (Online Transaction Processing) manages daily transactions.
- OLAP systems have a multidimensional data model, whereas OLTP systems have a relational one.
- OLAP prioritizes read-heavy operations, and OLTP emphasizes write-heavy operations.
OLAP vs OLTP
An online analytical processing system (OLAP) is a multi-dimensional model that analyses large volumes of data at high speed. It is subject-oriented, with a long processing time for data mining and data analysis. An online transaction processing system (OLTP) is a method of processing data in concurrent transactions like online banking or shopping. It is application oriented with a short processing time.
OLAP refers to an Online Analytical Processing system. The function of the OLAP database is to store the historical data input of OLTP.
OLAP is subject-oriented; it has a practical application in data mining, decision-making, analytics and the like. In addition, it unveils snapshots of current business tasks. The data size is considerably large.
OLTP refers to the Online Transaction Processing system. OLTP serves the purpose of recording the current Update, Insertion, and Deletion while carrying out a transaction.
OLTP has practical applications in online banking, sending a text message, online airline ticket booking, and adding an item to the shopping cart. OLTP is application-oriented and has prominent use in businesses.
Comparison Table
| Parameters of Comparison | OLAP | OLTP |
|---|---|---|
| Definition | OLAP refers to a database system which stores historical data input of OLTP. | OLTP refers to a database system that serves the purpose of recording the current Update, Insertion, and Deletion while carrying out a transaction. |
| Full Form | Online Analytical Processing system | Online Transaction Processing system |
| Transaction | OLAP has long transactions. | OLTP has short transactions. |
| Nature of Queries | OLAP database handles complex queries. | OLTP database handles rather simple queries. |
| Processing Time | The processing time of OLAP is longer than that for OLTP. | The processing time for OLTP is shorter than that for OLAP. |
| Data Integrity | Since the transactions in OLAP are less frequent, it doesn’t care much about data integrity. | OLTP database take data integrity as a serious concern. |
What is OLAP?
OLAP refers to an Online Analytical Processing system. The function of the OLAP database is to store the historical data input of OLTP.
It also enables users to assess different conclusions from multidimensional data. Another practical application of OLAP is it allows users to extract the necessary information for a large data set. It can, then, have a use for making decisions.
OLAP allows users to initiate complex queries to extract multi-dimensional data. Moreover, it serves as an online data retrieval and analysis system.
OLAP has long transactions and requires a longer processing time as compared to OLTP. Since the transactions in OLAP are less frequent, it doesn’t care much about data integrity.
Netflix’s movie recommendation system and the list of songs recommended by Spotify are both OLAP systems. OLAP is subject-oriented; it has a practical application in data mining, decision-making, analytics and the like.
In addition, it unveils snapshots of current business tasks. The data size is considerably large. As a result, it is stored in TB or PB format.
OLAP systems require backup from time to time. Queries related to the OLAP database may take hours since the data amount is significantly large.
This kind of data, moreover, is maintained by MD, CEO, and GM. In conclusion, the OLAP system rarely writes operations. At most times, it only reads operations.
What is OLTP?
OLTP refers to the Online Transaction Processing system. OLTP serves the purpose of recording the current Update, Insertion, and Deletion while carrying out a transaction.
One prominent feature of OLTP queries is that they are short and simple. As a result, they require less processing time. In addition, they require less space.
A common day example of OLTP is an ATM. It employs short-term transactions to modify the status of our account. The OLTP system becomes the data source for the OLAP.
If a transaction in OLTP fails in the middle, it may affect data integrity. In addition, the OLTP database consists of normalised tables and gets frequent updates.
The main operations of OLTP are inserting, updating, and deleting. OLTP has practical applications in online banking, sending a text message, online airline ticket booking, and adding an item to the shopping cart.
OLTP is application-oriented and has prominent use in businesses. The size of data in an OLTP database is small, such as in MB or GB.
The backup and recovery process of OLTP has strict maintenance. Moreover, managers or clerks must maintain this data. An OLTP database both reads and writes operations.
OLTP also serves the function of handling the ACID properties during data transactions.
Main Differences Between OLAP and OLTP
- OLAP refers to a database system that stores the historical data input of OLTP. In contrast, OLTP serves the purpose of recording the current Update, Insertion, and Deletion while carrying out a transaction.
- Since the transactions in OLAP are less frequent, it doesn’t care much about data integrity. On the other hand, OLTP databases take data integrity as a serious concern.
- OLAP is subject-oriented; OLTP is application-oriented.
- The processing time of OLAP is longer than that of OLTP. On the other hand, the processing time for OLTP is shorter than that for OLAP.
- OLAP has long transactions. In contrast, OLTP has long transactions.
- https://ieeexplore.ieee.org/abstract/document/1423297/
- https://books.google.com/books?hl=en&lr=&id=eskZA1CFdqMC&oi=fnd&pg=PR9&dq=olap+meaning&ots=W5YldKBjQk&sig=_2sB0PO8s4Cd3I8q60m44vfa9Vc
Last Updated : 14 October, 2023
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Chara Yadav holds MBA in Finance. Her goal is to simplify finance-related topics. She has worked in finance for about 25 years. She has held multiple finance and banking classes for business schools and communities. Read more at her bio page.
This is a very important piece of information. The differences between OLAP and OLTP are crucial. It’s interesting to understand why Netflix’s movie recommendation system, for instance, is an OLAP system. And also, it was quite enlightening to learn why OLTP takes the data integrity as a concern.
It’s always interesting to understand how big companies use different systems to manage their data. This way, we can understand the systems better. Great article!
Indeed! This article helps us understand the difference between these two systems. It is an interesting piece of information for sure.
This information is important because it’s the basis for a lot of newer technology development. A solid understanding of the widely-used OLAP and OLTP systems is foundational for a tech career.
It’s interesting and cool to understand some basics of technology we use in our day-to-day life.
Definitely. A very solid understanding of the basis is mandatory for entering the tech field.
The comparison table was an interesting addition to the article.
A well-explained article. It is quite informative.
Really well-explained. Great job!
Very informative indeed, thumbs up!
It’s always great to understand the basic concepts of technology.
It really is. Understanding basic concepts is what makes or breaks a career sometimes.
An important piece of basic knowledge, after all.
This is quite basic information – anyone in the tech industry knows about OLAP and OLTP. Somehow, this article managed to represent the information in a comprehensive and detailed way. Great job!
If the information is basic, we shouldn’t forget it was clearly written and well-explained.
This is valuable information for aspiring tech entrepreneurs.
For sure, it’s of utmost value for those stepping into the field of technology.
A piece of simple but valuable information for any tech entrepreneur.
Understanding the differences between OLAP and OLTP is fundamental.
Indeed. A solid article explaining the differences well.