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Databases are used pretty much everywhere. Data processing played an immense part in the development of computers, and even today it is one of their main roles. Almost every walk of life or business requires a database. Databases are generally used on personal computers to store data used locally, and on company networks databases store and share company-wide information. The Internet has seen a big rise in use databases for share information; most online shops of a reasonable size use databases. When you visit online stores of any significant size, a database usually provides all the information on the goods being sold. Rather than every page being created by hand, large merchants use a template for book or CD details, and SQL retrieves the book information from the database.
Databases also make sharing data between different systems much easier than using proprietary data formats that is, a format specific to a particular database programs, or operating system. An Excel spreadsheet, for example, is easily read on a windows machine with MS Office, but it is more of a challenge to read on a UNIX, Macintosh, or Linux machine because those computers handle data in a different way. Even on a Windows machine, you need to have MS Office installed. You can house a customer database on a central computer, put the database management system on there, and then enable access via a local network or the Internet.
As an alternative to user database text files and spreadsheets have one big advantage, which is also their weakness, flexibility. Text files have no real rules. You can insert whatever text data you like wherever you like. To a large extent, spreadsheets are the same. You can ask users to add data in a predefined structure, but you have no real way to enforce such a request. Using databases limits user access to just the data and does not allow users to change the structure.
One final significant advantage of databases is security. Most of the customer database allows you to create users in order to specify various levels of security. Before someone accesses the database, you must log on as a specific user. Each user has various rights and limits. Someone who maintains the database has full ability to edit data, change the database's structure, add and delete users, and so on. Other users may only have the ability to view data but not change it, or you may even want to limit what data they can view.
