Kevin Hill explains a concept:
In SQL Server, the terms “set-based” and “row-based” refer to different approaches or styles of writing SQL code to manipulate data. These styles have implications for performance, readability, and the way queries are processed. Let’s explore the differences between set-based and row-based code:
Click through for Kevin’s thoughts. One thing I’d re-emphasize (because Kevin did make this point), especially for people coming to SQL Server from Oracle, is that set-based operations are going to be more efficient about 95-99% of the time than their row-based equivalents. Oracle has a large number of optimizations to make cursor-style code efficient and T-SQL has very few of those, as set-based is the more natural expression of SQL.
One quick example of this is, prior to SQL Server 2012 and its extended support of window functions, the fastest officially supported way to calculate a running total was to build a cursor. The other alternatives, including self-joins, were much less efficient. There was an unsupported but much faster technique that relied on a peculiarity of how SQL Server sorts clustered indexes (the “quirky update” method), but because it relied on internals that could change with any patch, it was a risky maneuver.
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