OLAP stands for On-Line Analytical Processing. It is a capability or a set of tools which enables the end users to easily and effectively access the data warehouse data using a wide range of tools like Microsoft Excel, Reporting Services, and many other 3rd party business intelligence tools.
OLAP is used for analysis purposes to support day-to-day business decisions and is characterized by less frequent data updates and contains historical data. Whereas, OLTP (On-Line Transactional Processing) is used to support day-to-day business operations and is characterized by frequent data updates and contains the most recent data along with limited historical data based on the retention policy driven by business needs.
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