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A transaction server is a specialized type of server that manages the operations of software based transactions or transaction processing. It manages application and database transactions on a network or Internet, within a distributed computing environment.
A transaction server may also be referred to as a transaction processing system (TPS) or as a part of one composite TPS solution.
A transaction server primarily enables transactions to be processed within distributed computing applications. Typically, a transaction server is a combination of hardware, software and network components that altogether ensures completion of each transaction. A transaction server works when an application or application server requests for a specific data object residing on a database or database server on the network or Internet. The transaction server acts as an intermediary server that can ensure that the application or user receives the requested data from the database or the completion of that transaction.
The transaction server is also the name of a Microsoft Server (Viper) or Microsoft transaction server (MTS), which provides similar functionality. It provides transaction processing services on the COM/DCOM based software components.