The age old question. Where should you put your business logic, in the database as stored procedures ( or packages ), or in the application/middle tier? And more importantly
The business logic should be placed in the application/middle tier as a first choice. That way it can be expressed in the form of a domain model, be placed in source control, be split or combined with related code (refactored), etc. It also gives you some database vendor independence.
Object Oriented languages are also much more expressive than stored procedures, allowing you to better and more easily describe in code what should be happening.
The only good reasons to place code in stored procedures are: if doing so produces a significant and necessary performance benefit or if the same business code needs to be executed by multiple platforms (Java, C#, PHP). Even when using multiple platforms, there are alternatives such as web-services that might be better suited to sharing functionality.
I remember reading an article somewhere that pointed out that pretty well everything can be, at some level, part of the business logic, and so the question is meaningless.
I think the example given was the display of an invoice onscreen. The decision to mark an overdue one in red is a business decision...
The only thing that goes in a database is data.
Stored procedures are a maintenance nightmare. They aren't data and they don't belong in the database. The endless coordination between developers and DBA's is little more than organizational friction.
It's hard to keep good version control over stored procedures. The code outside the database is really easy to install -- when you think you've got the wrong version you just do an SVN UP (maybe an install) and your application's back to a known state. You have environment variables, directory links, and lots of environment control over the application.
You can, with simple PATH
manipulations, have variant software available for different situations (training, test, QA, production, customer-specific enhancements, etc., etc.)
The code inside the database, however, is much harder to manage. There's no proper environment -- no "PATH", directory links or other environment variables -- to provide any usable control over what software's being used; you have a permanent, globally bound set of application software stuck in the database, married to the data.
Triggers are even worse. They're both a maintenance and a debugging nightmare. I don't see what problem they solve; they seem to be a way of working around badly-designed applications where someone couldn't be bothered to use the available classes (or function libraries) correctly.
While some folks find the performance argument compelling, I still haven't seen enough benchmark data to convince me that stored procedures are all that fast. Everyone has an anecdote, but no one has side-by-side code where the algorithms are more-or-less the same.
[In the examples I've seen, the old application was a poorly designed mess; when the stored procedures were written, the application was re-architected. I think the design change had more impact than the platform change.]
Scalability is also very important factor for pusing business logic in middle or app layer than to database layer.It should be understood that DatabaseLayer is only for interacting with Database not manipulating which is returned to or from database.
While there are certainly benefits to have the business logic on the application layer, I'd like to point out that the languages/frameworks seem to change more frequently then the databases.
Some of the systems that I support, went through the following UIs in the last 10-15 years: Oracle Forms/Visual Basic/Perl CGI/ ASP/Java Servlet. The one thing that didn't change - the relational database and stored procedures.
Business logic is usually embodied by objects, and the various language constructs of encapsulation, inheritance, and and polymorphism. For example, if a banking application is passing around money, there may be a Money type that defines the business elements of what "money" is. This, opposed to using a primitive decimal to represent money. For this reason, well-designed OOP is where the "business logic" lives—not strictly in any layer.