XML parsing is generally known to have poor performance characteristics relative to transactional database processing. Yet, its potentially fatal impact on overall database performance is being underestimated. We report real-word database applications where XML parsing performance is a key obstacle to a successful XML deployment. There is a considerable share of XML database applications which are prone to fail at an early and simple road block: XML parsing. We analyze XML parsing performance and quantify the extra overhead of DTD and schema validation. Comparison with relational database performance shows that the desired response times and transaction rates over XML data can not be achieved without major improvements in XML parsing technology. Thus, we identify research topics which are most promising for XML parser performance in database systems. Categories and Subject Descriptors H.2.4 [Database Management]: Systems–transaction processing. General Terms Algorithms, Measurement,...