A Database Driven website is one where the information displayed on the website is stored in a database on the server, then the pages of the website are built using a program that pulls the information from the database "on the fly". The information on the page you are looking at now in this glossary is being pulled from a database. Many ecommerce sites are database-driven. The information about products and prices (and so on) is stored in the tables of a database on the server. WordPress websites are completely database-driven. Note that "Database Driven" is different than "Data Driven".
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