Zsolt Tövis - Full Stack Developer
Zsolt TövisFull Stack Developer
What is PostgreSQL
What is PostgreSQL

What is PostgreSQL?

PostgreSQL is an advanced, open-source database system acting as the secure storage engine for critical business data. It delivers the stability and power of expensive enterprise solutions completely free of charge, without any licensing fees or vendor lock-in.

Business Benefits

Adopting PostgreSQL results in significant cost savings and strategic independence. Being open-source, it is completely free of licensing fees, which can mean tens or hundreds of thousands of dollars in annual savings in Total Cost of Ownership (TCO) compared to paid alternatives in an enterprise environment. The technology is extremely reliable and standards-compliant, ensuring data integrity and stable system operation even under critical loads. Additionally, major cloud providers (AWS, Azure, Google Cloud) widely support it, allowing infrastructure to scale flexibly with business growth.

Drawbacks and Risks

Although the software itself is free, professional operation requires a high level of expertise, especially with large data volumes and complex systems. Unlike "boxed" products, there is no single dedicated manufacturer to default to for support in case of errors, though this risk can be managed with external support contracts (e.g., EnterpriseDB). For very specialized tasks requiring extreme write speeds or purely analytical workloads (Big Data), performance limitations may arise if the architecture is not chosen correctly. In the case of migration, transitioning from existing systems (e.g., Oracle) can be time-consuming due to differences in procedural languages.

Practical Application

PostgreSQL is excellently suited for any area where data security and transaction accuracy are critical, whether it be financial systems, logistics software, or customer relationship management (CRM) systems. It is also an ideal choice for Geospatial Information Systems (GIS) applications, as it possesses market-leading capabilities in handling geographic data. Global corporations such as Netflix, Uber, Instagram, Spotify, and Mastercard build their critical infrastructure on this technology, proving its capability to serve even the highest loads.

Executive Summary

PostgreSQL is a mature, enterprise-grade technology that is a strategically excellent decision for companies wishing to reduce IT operational costs and eliminate dependence on software vendors (vendor lock-in). The stability and future-proof nature of the technology are guaranteed, and the risk of adoption — with the appropriate expert team or partner involvement — is low. The investment pays off primarily not in license fees but in high-level engineering knowledge, providing a flexible, modern, and cost-effective foundation for data asset management that supports long-term company growth.

Frequently Asked Questions

PostgreSQL is available under the highly permissive PostgreSQL License, which allows for virtually unlimited, free usage, including for commercial purposes. There are no per-user, per-core, or data volume-based hidden fees, representing a radical cost advantage over paid databases.

PostgreSQL is one of the most popular database technologies among developers, so there is a wide supply in the labor market. However, senior expertise required for enterprise-level optimization and operations is in high demand, and their compensation is correspondingly higher, often rivaling that of specialized Oracle experts.

Yes, the system supports the strictest corporate security standards, including data encryption, detailed Role-Based Access Control (RBAC), and multi-factor authentication. With proper configuration, it is suitable for serving GDPR, HIPAA, and PCI-DSS compliant environments.

The complexity of migration depends on the business logic of the existing system. Data transfer can be automated, but rewriting specialized code sections (stored procedures) requires human effort. The biggest advantage is that the switch eliminates "vendor lock-in," meaning the company will no longer be vulnerable to the pricing policies of a single manufacturer.

The software's resource requirements are scalable, it can run on on-premise servers or as a cloud-based managed service (e.g., Amazon RDS, Azure Database). In the latter case, the service provider takes over most operational tasks (backups, updates), reducing the burden on the internal IT team.

The development of PostgreSQL is backed by a massive global community and multiple large corporations, not a single company, which rules out the product being discontinued overnight. Regular updates and widespread industry adoption guarantee that the technology will remain dominant for decades.

The ROI is immediate and direct due to the elimination of license fees, which often covers the one-time cost of the transition. Long-term savings are ensured by the lower maintenance costs of modernized infrastructure and faster development cycles.

With PostgreSQL, vendor dependence is virtually zero since the source code is open and accessible to anyone. If a problem arises with the current provider or development team, the database and system can be moved to any other provider or infrastructure without legal or technical obstacles.

While excellent for general purposes, for extremely large (petabyte-level) data warehouses or specialized real-time analytics, purpose-built software (e.g., Snowflake, ClickHouse) may perform better. In such cases, PostgreSQL often features as a complementary element rather than the sole solution in the architecture.

Maintaining older databases becomes increasingly expensive, finding specialists for them is difficult, and they hinder innovation. Introducing PostgreSQL modernizes the IT foundation, allows for the utilization of cloud technologies, and makes the company more attractive to talented developers.

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