Online transaction processing

Online transaction processing, or OLTP, refers to a class of systems that facilitate and manage transaction-oriented applications, typically for data entry and retrieval transaction processing. The term is somewhat ambiguous; some understand a "transaction" in the context of computer or database transactions, while others (such as the Transaction Processing Performance Council) define it in terms of business or commercial transactions.^[1] OLTP has also been used to refer to processing in which the system responds immediately to user requests. An automatic teller machine (ATM) for a bank is an example of a commercial transaction processing application.

Requirements

OLTP is a methodology to provide end users with access to large amounts of data in an intuitive and rapid manner to assist with deductions based on investigative reasoning.

Online transaction processing increasingly requires support for transactions that span a network and may include more than one company. For this reason, new online transaction processing software uses client or server processing and brokering software that allows transactions to run on different computer platforms in a network.

In large applications, efficient OLTP may depend on sophisticated transaction management software (such as CICS) and/or database optimization tactics to facilitate the processing of large numbers of concurrent updates to an OLTP-oriented database.

For even more demanding Decentralized database systems, OLTP brokering programs can distribute transaction processing among multiple computers on a network. OLTP is often integrated into service-oriented architecture (SOA) and Web services.

Benefits

Online Transaction Processing has two key benefits: simplicity and efficiency. Reduced paper trails and the faster, more accurate forecasts for revenues and expenses are both examples of how OLTP makes things simpler for businesses.

Disadvantages

As with any information processing system, security and reliability are important considerations. When organizations choose to rely on OLTP, operations can be severely impacted if the transaction system or database is unavailable due to data corruption, systems failure, or network availability issues. Additionally, like many modern online information technology solutions, some systems require offline maintenance which further affects the cost-benefit analysis.

See Also

• Data mart
• Data warehouse
• OLAP
• ETL
• Transaction processing
• Database transaction
• Derby in-memory Java Database
• IBM Customer Information Control System
• Pervasive DataRush

Contrasted To

• Batch Processing
• Grid Computing

References

1. ^ Transaction Processing Performance Council website

External links

• H-Store Project (architectural and application shifts affecting OLTP performance)
• IBM CICS official website
• Transaction Processing Performance Council
• OLTP Schema
• Transaction Processing: Concepts & Techniques Management

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