I want to upgrdae our lower version GIS database into higher version GIS database.Is it possible to do so and suggest methods to do so.I am thinking of using FME.Is it possible to use FME or any other option will be suitable?Please suggest...
You can certainly use FME to read from a Smallworld 4.0 database, and write the data into a 4.1 database. But unless you were doing a large scale re-modelling of the data en-route I don't see the need.
I'm sure there must be some sort of upgrade mechanism in Smallworld. I'd contact your Smallworld reseller/support to find that out.
FME with Smallworld is best for moving data out of Smallworld to another system, or into Smallworld from another system. You'd only do Smallworld - Smallworld to transform the data in some way. I don't know of any user who is using it to upgrade in the way you describe.
Your question is very vague. Which database are you referring to? Databases typically usually have their own procedures for upgrading and these should include data transfer as part of the process. The place to start with Oracle would be here: http://www.oracle.com/technetwork/products/upgrade/index.html
That said, if you have a specific reason for using FME, you'll need a database-writer level FME license to be able to do this.
The FME readers themselves don't specify which versions of the database they support but I believe they support all versions transparently - this page for Oracle implies it.
So you could probably pretty easily create a translation that has a reader piped straight into a writer to get the data from one to the other, but that won't upgrade the database software itself or any of the backend stuff.