ArcGIS works with geographic information managed in geodatabases as well as in numerous GIS file formats. The geodatabase is the native data structure for ArcGIS and is the primary data format used for editing and data management.
Geodatabases work across a range of DBMS architectures and file systems, come in many sizes, and have varying numbers of users. They can scale from small, single-user databases built on files up to larger workgroup, department, and enterprise geodatabases accessed by many users.
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