CONVERSION COSTS
The older systems in an organization are based on file processing and / or older database technology.The cost of converting these older systems to modern database technology - is measured in terms of dollars,time and organizational commitment and may often seems prohibitive to an organization.
INSTALLATION AND MANAGEMENT COST
- A multiuser database management system is a large and complex software that has a high initial cost,requires a staff of trained personnel (people) to install and operate,annual maintenance etc.
- Installing such a system may also require upgrades to the hardware and data communication system in the organization.
- Substantial training is required at ongoing basis to keep up with new releases and upgrades.
NEW SPECIALIZED PERSONNEL
- Organizations that adopt the database approach need to hire or train individuals to design and implement databases,provide database administration services and manage a staff of new people.
- Further,because of the rapid changes in technology these new people will have to be retrained or upgraded on a regular basis.
NEED FOR EXPLICIT BACKUP AND RECOVERY
A shared database must be accurate and available at all times.This requires that procedures should be developed and used for providing backup copies of data and for restoring a database when damage occurs.
SECURITY BREACHES
Centralization also means that the data is accessible from a single source,namely the database.This increases the severity of security breaches(breaking) and disrupting the operation of the organization.
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