By Luke Fitzpatrick
Data is a piece or a large amount of information stored electronically. With so much information stored in different folders, this separation of data makes data storage inconsistent and tedious to access, edit, or replace.
That’s precisely where servers or databases come into the picture. With complex data and numbers pouring in daily, especially in the fintech industry, having a solid database or servers is crucial to managing it.
A database is nothing but a collection of information in a structured way to allow for fast readability, access, and editing. It is the center of the data flow, as data flows from the database to other system parts.
Any organization’s overall efficiency and success rely on practicing the right database management skills and ensuring timely maintenance and optimization. An expert and knowledgeable database administrator is required to facilitate the database’s health, availability, and performance.
Databases are the backbone of any enterprise, and thus it is imperative to have a professional DBA who implements best practices to manage and continually upgrade their skill set.
The craze around open data servers or databases has increased drastically. An open-source database is any database that comes with a codebase that can be opened, viewed, downloaded, or reused by anyone without any vendor lock-in.
Here, the users are given the liberty through open source license to create a system based on their distinct requirements or business needs. The source code is free and can be modified under user preferences.
These servers or databases store vital information in software that controls the organization. Since there are no licensing fees in open data servers, the total cost of ownership (TCO) is considerably lower than commercial databases.
This concept of open data servers contrasts with proprietary databases where the code is entirely secure to prevent copying. In closed source databases, the user has to pay subscription fees to allow the usage of databases within applications.
The company curating the code maintains the codebase. The users have to wait for the company to introduce new features or resolve any bugs in the database management system.
Benefits of open data servers for businesses
Open-source databases benefit businesses in many ways; however, they come with their share of downsides. They come with different challenges, from surged costs to compatibility issues.
- Tedious to use: Some open data servers are difficult to use and set up. They come with features and interfaces that are not user-friendly. Due to unfamiliarity with these features, the users might find them challenging to operate, and this reduces productivity by preventing the users from adopting practices seamlessly.
- Compatibility problems: Sometimes, proprietary hardware needs specialized drivers to operate open-source programs that can only be purchased from the equipment manufacturer, further adding to the expenses.
- Less security and warranty: Along with proprietary databases, the developer offers indemnification and a long-term warranty as a part of a standard license agreement. However, the open data servers come with a license of the limited warranty and no liability. They have complete control and copyright of the application and the underlying code.
- Unprecedented costs: Software available free at the up-front will always later run you into colossal expenditure, especially if you haven’t considered the hidden costs.
Some of the types of costs involved in open data sources are as below:
- Setup costs: There might be a requirement for new hardware to use the software.
- Training and installation: You might need to hire or pay someone to install the system for you. Also, you might need to train your staff to make them familiar with the system.
- Complexity: It might get complex to integrate the open data servers with other applications.
What do trading strategies involve?
Developing trading strategies involves dealing with large amounts of data. To obtain promising results, traders need to carry out tests and optimizations on various trading instruments, monitor and save the results — and scrutinize these to make financial decisions.
There are many platforms like:
- Fidelity Investments.
- Interactive Brokers.
- MetaTrader 5.
MQL5 is the ideal solution for algorithmic trading since it’s close to C++ in terms of syntax and computation speed. It offers users the modern specialized language to help develop trading robots and custom indicators. Plus allows them to go beyond simple trading tasks and create analytical systems of complexity.
Databases are essential in this highly technical and evolving fintech world. With rising complexities and heavy calculations, a user needs to weigh and access everything for any software you intend to use.
About the author
Luke Fitzpatrick has been published in Forbes, Yahoo News and Influencive. He is also a guest lecturer at the University of Sydney, lecturing in Cross-Cultural Management and the Pre-MBA Program.