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Hi anil. The data stream in tool is for bringing data from your local machine into the server space, creating a temp table, new table or overwriting an existing table.
You may be looking for the "Write Data in-DB" tool. This gives you a couple more options such as delete / append (rather than re-create the whole table).
For updating records on a table, the only way I have done this is to bring the data to the local machine (using the Data Stream Out tool), then using the Output tool and pointing to the table on the server. I have had the best luck doing this as if the database is keyed correctly you can update, insert only new records, as well as use bulk insert if you have large amounts of data.
If the database you want to write to is within the same data source as the source data( i.e. SQL Server) then you can simply use the Write Data In-DB tool. If the Destination database you want to write to is in a different data source, such as an Oracle database and your Source database is SQL Server, then you need to use the Data Stream Out tool and then use a Data Stream In tool to to the Destination database.