SharePoint lists consist of rows and columns that store data in a similar fashion to a traditional relational database management system such as SQL Server. However, a benefit of lists is that SharePoint includes Web Parts that provide simple methods for managing the data. If the data was stored in a database, it would require custom user interface components to access it and manipulate it. Also, specialized skills are required to design, implement, and maintain a custom database. Another advantage of using lists is that custom workflow and event handlers can easily be registered to them.
There are also advantages to storing data inside of a database. One is the availability of all the ACID (Atomic, Consistent, Isolated and Durable) properties of transactions. If your business logic requires transactions, storing data in a database is preferable to using lists. Also, SharePoint lists are meant to store simple data structures. If you require a complex data model with intricate relationships, a database is more appropriate.
The following table summarizes the benefits of using databases and SharePoint lists.
Benefits Database SharePoint list
Handles complex data relationships Yes No
Handles large numbers of items Yes No
Handles transactions Yes No
Is easy to use No Yes
Accommodates workflows No Yes
Includes a standard interface No Yes
Can easily add binary data No Yes
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