Online databases can be a cost-effective alternative and are a definite step up from spreadsheets. They are hosted on outside servers and you buy access to them. There are general and mission-specific versions. Online databases can take the difficulty out of database management while offering the same level of support as the highest-priced databases.

Some reputable companies offer these databases. Intuit, the maker of Quicken, already has upwards of 100,000 users for its QuikBase, which is hosted in the same data center with TurboTax and other Intuit online products. Upshot and SalesForce.com are examples of service providers than have developed application-specific online databases.

Despite the advantages, however, there are other considerations including:

  Integration: Matching the software into an existing set up can prove difficult: Databases are generally more difficult than spreadsheets, so it can take a full day to program one to keep track, say, of company expenses. 

  Sharing: The databases can be shared with partners, suppliers and others to streamline supply chain requirements. But supporting such functionality is beyond the capabilities of most IT managers supporting Excel and requires some high caliber talent capable of handling Siebel.

Do you need this? If more than five people in your office collaborate on developing documents in a table format, you probably do. However, to open up the real potential of these databases you need the help of a professional you can trust with your sensitive financial and corporate data.