How to choose the right type of database software to maximise your ROI
Knowing how to choose the right type of database software is really important. (So important that we’ve written a whole guide on it.) Today, however, we’re going to focus on the ROI part. What decisions can you make about your database software that will directly translate into sales?
The ROI of Database Software
So first, what is ROI in the context of database software? You could measure it in several ways but ROI usually comes down to gains in performance, rapid scalability, reduced cost, and better business outcomes. The very first step is to see where you can create efficiencies and make that your priority. Could you invest in faster data processing for improved customer experience? What about moving from something archaic like a spreadsheet into a purpose-built database? Or do you need to speed up how long it takes to resolve queries so you can streamline your headcount? Once you know what you need a new or updated database for; you can go to market.
Common ROI pitfalls
The most common mistake is overpaying for features you won’t use or getting locked into a single vendor ecosystem. Then there’s naivete around the cost of migrations or downtime. You can save yourself a lot of time and headaches by first understanding your workload across OLTP (transactional) vs OLAP (analytical) needs. Do you have data compliance concerns above standard usage? Factor that in too. Great a wish list of must-haves and nice-to-haves for your new database software purchase. Then you want to think about the future and if cloud-native databases for elastic scaling might help. With these elements written down, you’ll begin to understand what type of database software you need. Lastly, to calculate ROI, you’ll want to compare the value of time saved, reduced costs, customer retention and employee retention against your TCO or Total Cost of Ownership. This might include things like licensing fees, hardware requirements and cloud usage costs. Make a vendor shortlist and tally everything up to get an idea of your business upside.
How to choose the right database for your needs
When evaluating your vendors, consider how they will integrate with your existing systems. Are there any vendor lock-in risks, proprietary versus open standards, maintenance or reliability issues to contend with? What guarantees can they give you? We can’t overstate the importance of SLAs for mission-critical applications and robust backup and recovery plans. You might go with relational databases like MySQL, PostgreSQL or Oracle for transaction-heavy use cases with structured data. If you need flexibility, have unstructured data and run real-time applications, NoSQL databases like MongoDB, DynamoDB and Cassandra could work. Or if you want elastic scaling with anywhere access, try a cloud-native option like the upcoming Laravel Cloud, AWS Aurora or Google Bigtable. Lastly, don’t overlook the value of specialised databases like Elasticsearch or Redis if you have niche needs like caching or searching.
The general process for picking your next database software provider should follow four easy steps:
- Define your business and technical requirements.
- Assess your workload and traffic patterns.
- Compare the short-term vs long-term costs of each solution.
- Evaluate your vendor options and SLAs.
- Run pilots or proof-of-concept projects before full rollout.
Need help to do that? We’re all about solving your business challenges. Reach out for a quick, no-obligation chat about your data ecosystem today.
