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The performance issues are presented. The process of performance tuning is described. The indexing concept is introduced. The two types of defining an index are identified. The paper presents and explains the way a clustered and nonclustered index works. A compared analysis between clustered and nonclustered indexes is created. The benefits of using indexes on databases are identified and explained. A demonstration of using SEEK and SCAN indexes is presented, showing the logic behind these two types of indexes. Cases when an index must be used and how this index is created, are presented along with the performance improvement that is obtained after successfully creating the index.