A database is a collection of logically related data designed to meet the information needs of an organization. It includes entities, attributes, and relationships. A database management system (DBMS) enables users to define, create, maintain, and control access to the database. It allows application programs to interact with the database using queries. Key components of a DBMS environment include hardware, software, data, procedures, and users who have different roles. DBMSs provide advantages like data sharing and integrity but also disadvantages like complexity, costs, and potential single points of failure.