How Much Does Database Development Cost?

Every software product works with systematic data stored in a database. This approach makes it possible to store large amounts of data and access it quickly when needed.

Software development and databases are often closely related. They are created according to the customer’s individual requirements, taking into account their specific activity, and therefore each of them is a unique product.

Databases are an important element of digital transformation and an automation system in a company, which makes this tool unique and indispensable for companies in various sectors.

Database Development Cost: What Does the Cost Depend On?

Clients ask this question only after they realize the need to work on such a project. Several factors affect the cost and time of database development. Let us talk about the most important ones in detail.

1. Technical requirements and project design documentation

Detailed technical specifications for database development are necessary to assess project cost and deadlines. If you have such documentation, prototypes, and other components necessary for the pre-design work phase, you can reduce database development costs. Otherwise, developers will have to prepare them themselves, and that will increase the cost.

This can partially explain lower cost levels for standard, ready-made, replicated products compared to custom databases and those developed from scratch.

In 2022, 46.85 percent of surveyed software developers reported using MySQL, making it the most popular database tool.

2. Project complexity

Complex projects are those databases that feature a multi-level structure, serious business logic, complex links, many components, integration with other systems, web access, and remote operation. Custom solutions developed in a non-standard subject area are also considered complex.

This aspect is difficult to define. The project, which may prove difficult for one contractor, will not necessarily be hard for some other.

3. Solution customization level

What we mean here is the number of custom requirements set specifically by a particular customer, which will greatly affect the overall project cost.

Sometimes, we develop databases based on pattern solutions and a rather superficial customization of finished products, but at times, we have to develop solutions from scratch. In the former case, the solution cost will be significantly lower for the customer.

4. Non-functional requirements

As a rule, in this case, we talk about such features as performance, dependability, and scalability. In cases where hundreds or thousands of users will work with the database at the same time, the requirements for database development and optimization will increase, and that will also push the project cost up.

This is generally a very individual parameter. Some, for example, are ready to slightly sacrifice performance to reduce database costs, but for others, the highest performance is an extremely important parameter.

By 2025, people will create more than 181 ZB of data. That’s 181, followed by 21 zeros.

— G2.com

5. Integrations with external services

If you plan a product with multiple external integrations, for instance, with payment systems, analytics, e-mail services, etc., this will increase the cost of database development as well.

How To Reduce the Costs of Database Development

Here are some of the key points from the list of best practices for reducing database development costs:

• Database normalization. Properly normalize the database design to reduce redundancy, minimize storage requirements, and ensure data integrity.
• Indexing Strategy. Implement a well-thought-out indexing strategy to optimize query performance and reduce unnecessary overhead.
• Query Optimization. Analyze and optimize queries, especially those involving complex joins or subqueries, to improve performance and reduce resource consumption.
• Caching. Implement caching mechanisms to reduce database server load and improve application responsiveness.
• Database monitoring. Implement database monitoring tools to identify performance bottlenecks, track resource utilization, and proactively address problems.
• Database Automation. Automate database deployment, migration, and testing processes to reduce manual effort, minimize errors, and improve consistency across environments.
• Database scaling and load balancing. Plan for scalability by implementing load balancing, sharding, or replication strategies to distribute workload across multiple database servers or nodes.

Depending on factors stipulated above, database development, implementation, and support costs can vary significantly.

At Lvivity, we always individually assess such a parameter as a cost because we strive to take a particular project’s specifics into account to ensure the maximum return on investment for our customers. If you are interested in how much will a custom database development cost for your business, contact us, and we will manage to offer you the ultimate solution.