Why would I want to use XQuery when talking to a relational database? I've spent a good portion of my last two years demonstrating how DataDirect XQuery can be used to solve problems that also require access to relational databases; so, let me describe a few usecases I have seen; in all of them, being able to use XQuery rather than Java+SQL makes developer's life much simpler and productive.
I need to query my database to generate XML documents
We have recently published a customer story about this; it's not infrequent that data needs to be transferred/communicated in XML format. So, even when the data is all stored in relational databases, SQL (plus whatever language around it to "massage" the data) is not necessarily the easiest path to generate XML representing portions of the relational data. The customer in question has commented on some quantitative comparison between *how much* easier it is; it's not difficult believe it if you know the technologies in question.
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