You should be aware of the following points when using the
      FEDERATED storage engine:
    
          FEDERATED tables may be replicated to other
          slaves, but you must ensure that the slave servers are able to
          use the user/password combination that is defined in the
          CONNECTION string (or the row in the
          mysql.servers table) to connect to the
          remote server.
        
      The following items indicate features that the
      FEDERATED storage engine does and does not
      support:
    
The remote server must be a MySQL server.
          The remote table that a FEDERATED table
          points to must exist before you try to
          access the table through the FEDERATED
          table.
        
          It is possible for one FEDERATED table to
          point to another, but you must be careful not to create a
          loop.
        
          A FEDERATED table does not support indexes
          per se. Because access to the table is handled remotely, it is
          the remote table that supports the indexes. Care should be
          taken when creating a FEDERATED table since
          the index definition from an equivalent
          MyISAM or other table may not be supported.
          For example, creating a FEDERATED table
          with an index prefix on
          VARCHAR,
          TEXT or
          BLOB columns will fail. The
          following definition in MyISAM is valid:
        
CREATE TABLE `T1`(`A` VARCHAR(100),UNIQUE KEY(`A`(30))) ENGINE=MYISAM;
          The key prefix in this example is incompatible with the
          FEDERATED engine, and the equivalent
          statement will fail:
        
CREATE TABLE `T1`(`A` VARCHAR(100),UNIQUE KEY(`A`(30))) ENGINE=FEDERATED CONNECTION='MYSQL://127.0.0.1:3306/TEST/T1';
If possible, you should try to separate the column and index definition when creating tables on both the remote server and the local server to avoid these index issues.
          Internally, the implementation uses
          SELECT,
          INSERT,
          UPDATE, and
          DELETE, but not
          HANDLER.
        
          The FEDERATED storage engine supports
          SELECT,
          INSERT,
          UPDATE,
          DELETE,
          TRUNCATE TABLE, and indexes. It
          does not support ALTER TABLE,
          or any Data Definition Language statements that directly
          affect the structure of the table, other than
          DROP TABLE. The current
          implementation does not use prepared statements.
          
        
          FEDERATED accepts
          INSERT
          ... ON DUPLICATE KEY UPDATE statements, but if a
          duplicate-key violation occurs, the statement fails with an
          error.
        
          Performance on a FEDERATED table when
          performing bulk inserts (for example, on a
          INSERT INTO ...
          SELECT ... statement) is slower than with other
          table types because each selected row is treated as an
          individual INSERT statement on
          the FEDERATED table.
        
Transactions are not supported.
          FEDERATED performs bulk-insert handling
          such that multiple rows are sent to the remote table in a
          batch. This provides a performance improvement and enables the
          remote table to perform improvement. Also, if the remote table
          is transactional, it enables the remote storage engine to
          perform statement rollback properly should an error occur.
          This capability has the following limitations:
        
The size of the insert cannot exceed the maximum packet size between servers. If the insert exceeds this size, it is broken into multiple packets and the rollback problem can occur.
              Bulk-insert handling does not occur for
              INSERT
              ... ON DUPLICATE KEY UPDATE.
            
          There is no way for the FEDERATED engine to
          know if the remote table has changed. The reason for this is
          that this table must work like a data file that would never be
          written to by anything other than the database system. The
          integrity of the data in the local table could be breached if
          there was any change to the remote database.
        
          When using a CONNECTION string, you cannot
          use an '@' character in the password. You can get round this
          limitation by using the CREATE
          SERVER statement to create a server connection.
        
          The insert_id and
          timestamp options are not
          propagated to the data provider.
        
          Any DROP TABLE statement issued
          against a FEDERATED table drops only the
          local table, not the remote table.
        
          FEDERATED tables do not work with the query
          cache.
        
          User-defined partitioning is not supported for
          FEDERATED tables.
        


User Comments
There are issues regarding performance/stability that should be considered prior to the usage of the federated engine in a production environment, for example -
It's 100 percent a storage engine. For queries that need full table scans (because there isn't an index available), the server will ask for all table rows from the storage engine, and filter the relevant ones in the server level. With federated, this means the whole table will be passed over the network to the requesting server, and only then the relevant rows will be filtered out. Besides bad performance and network overload, this could easily lead to a server crash if the table is big, as it stores all this data in memory, in some buffer of it's own. For example, if you retrieve a table that's 4 gigs of data, and the requesting server has 2 or 4 gigs of RAM, in a very short while you'll start swapping like crazy, and if you run out of swap, OS will hang.
Also note it doesn't respect a LIMIT clause. It will pass the whole table over the network even if you request only 1 row.
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