Centralised data processing is computer processing that takes place in a single server or CPU. A mainframe computer or a single high-performance machine handles data management, data storage, and computation.

Different types of clients are connected to a single central server. The clients which are connected to the centralised server are smartphones, laptops, tablets or desktop computers. The processing speed in centralised data processing depends upon the processor speed, RAM used and hard drive type.

To make the data processing faster, SSD is used for data storage. The central server is more secure than other computers because the CPU uses the latest hardware and software.

Different users from different locations connect to the central server for data retrieval, analysis, and storage of documents. For example, if a form is displayed on any government website, then users submit the form, and that form data is then stored in the government’s central server. The government officials use the form data later.

The problem with centralised data processing is that when many users access the data at one time, data processing becomes high, and the system may stop working. For example, an education department has a central server. Upon the announcement of the result, many students connect to the server to see their marks. On this day, the server gets too many requests and it stops responding.

Centralised vs. decentralised data processing

In centralised data processing, there is only one server connected to one or more clients. In decentralised data processing, there are multiple servers connected to multiple users. For example, there is a big database, and now that database is divided into smaller pieces. Each decentralised server gives database information to the specific users who need it.

In decentralised data processing, data synchronisation is used. If data is updated in one decentralised server, then the same data is stored in all the connected servers.

The cost of managing centralised data processing is low compared to decentralised data processing. This is because the single-machine expense is lower than buying multiple machines.

Examples of centralised data processing

Some examples of centralised data processing are:-

• Wikipedia website uses centralised data processing in which one server gives information to millions of client computers
• Small organisations, stores, and education departments use centralised data processing
• Medium-level companies also use centralised data processing
• Libraries use centralised databases for storing book information
• Cloud computing also uses centralised data processing, e.g. Google Cloud, Azure and AWS.
• Banks also use centralised data processing for storing customers’ transaction history and managing credit cards