Utilizing traditional file storage imposes inherent limitations. While it proves adequate for applications handling minimal data volumes, it becomes impractical for those requiring substantial storage capacity. As data scales up, even simple operations turn laborious and less efficient, highlighting the inadequacy of this approach.

A Database Management System (DBMS) is specialized software crafted to handle extensive datasets efficiently and systematically. Within this system, data is housed and managed. Instead of directly manipulating data, applications developed in languages like Python interact with the DBMS. The DBMS executes commands received from the application and subsequently transmits the outcomes back to it.