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Given a .NET environment with Windows CE, can you persist thousands of records per second in a local database (SQL Server 2008 - standard or CE).

What are the performance issues with persisting realtime instrument data in a database versus a log file?

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SQL Server 2008 standard is more than capable of those insertion rates PROVIDED you have hardware capable of supporting it.

The question you really need to be asking is do I require the ability to search the captured data quickly?

This SO answer might be of interest: What does database query and insert speed depend on?

The number (and width) of indexes on a table will obviously have an impact on insertion rate.

If you are considering open-source, then MySQL is often cited as being able to handle high volumes.

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the feed needs to be used for realtime display. the data storage can happen later for the sake of posterity/reproducibility and should not interfere with the realtime performance of the device. –  mson Sep 5 '09 at 3:43
then perhaps collect the data to log files, and periodically (in an offline process) load those files into a database.... –  Mitch Wheat Sep 5 '09 at 3:44

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