A database is an organized collection of facts. In other words, we can say that it is a collection of information arranged and presented to serve an assigned purpose.
Example: Database is a dictionary where words are arranged alphabetically. Similarly, when you think of a box of cards with names and addresses written as a mailing list, then the box and its contents form a mailing database. It contains cards with the mailing address, All these cards are placed in alphabetic order of names and the collection of these cards would be called a Database.
Any organization, be it is a bank, manufacturing company, hospital, University, Government Office requires a huge amount of data in some form or the other. All such organization need to collect data, manipulate them and store them for future use. All such type of organizations require data for a number of purposes, say:
i) Preparing Sales Reports
ii) Forecasting Sales
iii) Preparing Accounts Reports
iv) Getting Medical Histories of Patients
DBMS (Database Management System): It is a software package that allows data to be effectively stored, retrieved and manipulated, The data contained in a DBMS package , it can be accessed by multiple application programs and users. Application packages such as SQL Server, Oracle, MS-Access,etc.