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Data Value

What is a dedicated database, why they are significant to security & selection of SaaS providers?

Dedicated database technology is a crucial part of the modern business ecosystem. As data becomes increasingly critical to businesses' day-to-day operations, the need for robust database solutions is more significant than ever.

In this blog, we will discuss what a dedicated database is, why it is essential to corporations, and the risks of using SaaS solutions that rely on a comingled database.

What is a dedicated database?

A dedicated database is a specialized database designed to serve a particular application or purpose. It is a database system that is dedicated solely to a single application or purpose and is not shared by any other application unless through controlled data connections. Dedicated databases are designed to be highly scalable, highly available, very secure and highly reliable.

Why is a dedicated database important to corporations?

There are several reasons why a dedicated database is essential to corporations. Here are some of the most critical ones:

  • Security: A dedicated database can offer a higher level of security than a shared or comingled database. With a dedicated database, access to data is restricted to authorized users and applications only. This can help prevent unauthorized access, data breaches, and other security incidents.
  • Performance: A dedicated database can be optimized for a specific set of data requirements, which can result in faster and more efficient data processing. This can be especially important for large corporations with high data volumes and complex data needs.
  • Scalability: A dedicated database can be easily scaled to accommodate growth and changing data requirements. (see our blog on Hyperscale) This can help ensure that the database can keep up with the organization's evolving needs.
  • Reliability: A dedicated database can be designed to be highly available and reliable. This can help ensure that data is always accessible when it is needed, which is critical for businesses that rely heavily on data.
  • Flexibility: A dedicated database can be customized to meet specific business needs. This can be especially important for businesses with unique data requirements or complex data structures.
  • Cost Saving: Deploying a dedicated database that is built on Hyperscale technology ensures that the corporation is only paying for the database utilization provided, which expands and contracts with company activity, thereby aligning costs directly with corporate value.

Why SaaS solutions that use a comingled database should be avoided:

Many SaaS solutions rely on a comingled database, which means that multiple clients' data is stored in the same database which provides them significant cost saving, but potentially introduces significant risk to their corporate clients. This can create significant security risks and other problems for businesses. Here are some of the risks associated with using SaaS solutions that rely on a comingled database:

  • Data breaches: If a comingled database is compromised, it can result in the exposure of sensitive data from multiple clients. This can be especially problematic for businesses that deal with sensitive information, such as healthcare organizations or financial institutions.
  • Compliance issues: Many industries have strict regulations around data privacy and security. Using a comingled database can make it difficult to comply with these regulations, as it can be challenging to ensure that data is being stored and processed in a way that meets the necessary standards.
  • Performance issues: If a comingled database becomes overloaded with data, it can result in slower performance and processing times. This can be especially problematic for businesses that rely on real-time data for critical decision-making.
  • Security: A comingled database can be less secure than a dedicated database. The shared nature of the database means that the security of the data is dependent on the security practices of all the customers that use it. If one customer's data is compromised, it could potentially lead to the compromise of other customers' data.

In Conclusion

In conclusion, a dedicated database is an essential tool for businesses that rely heavily on data. It offers significant benefits in terms of security, performance, scalability, reliability, and flexibility. On the other hand, SaaS solutions that rely on a comingled database should be avoided due to the significant risks associated with this type of architecture. Businesses should carefully evaluate their data needs and choose a database solution that can meet their specific requirements while ensuring the highest level of security and compliance.  When reviewing SaaS solutions, it should be determined if the data being stored within the application is sensitive and what the impact of a data breach might be. For important or mission critical corporate operation the SaaS provider database structure needs to be considered and if a dedicated database solution is not available should be avoided.