12. What are the potential costs of implementing a database system?
Although the database system yields considerable advantages over previous data management approaches, database systems do impose significant costs. For example:
• Increased acquisition and operating costs. Database systems require sophisticated hardware and software and highly skilled personnel. The cost of maintaining the hardware, software, and personnel required to operate and manage a database system can be substantial.
• Management complexity. Database systems interface with many different technologies and have a significant impact on a company's resources and culture. The changes introduced by the adoption of a database system must be properly managed to ensure that they help advance the company's objectives. Given the fact that databases systems hold crucial company data that are accessed from multiple sources, security issues must be assessed constantly.
• Maintaining currency. To maximize the efficiency of the database system, you must keep your system current. Therefore, you must perform frequent updates and apply the latest patches and security measures to all components. Because database technology advances rapidly, personnel training costs tend to be significant.
• Vendor dependence. Given the heavy investment in technology and personnel training, companies may be reluctant to change database vendors. As a consequence, vendors are less likely to offer pricing point advantages to existing customers and those customers may be limited in their choice of database system components.