A database appliance in which two or more internetworked data storage units are used to coordinate the storage and retrieval of database records. One or more central database processing units are also associated with the data storage units. A network infrastructure provides the ability for the central database processors and storage processors to communicate as network nodes, with the network infrastructure using a communication protocol. A software application for executing database operations executes in a distributed fashion with portions of the database application executing on at least one central database processor and other portions executing on the data storage processors. At least a portion of the database application is implemented within and/or coordinated by a communication process that is executing the communication protocol. This coordination takes place such that data blocks are passed between the communication process and at least one portion of the database application process by passing data block reference information. In accordance with other aspects of the present invention, the communication process may have at least portions of the database application process executing within it. These database application operations executing within the same context as the communication process may include database operations such as join, sort, aggregate, restrict, reject, expression evaluation, statistical analysis or other operations.