Disadvantage of stored procedures

Correction: Whether they're precompiled depends on the database. In SQL Server, for instance, they're not. Stored procedures and parameterized SQL are both compiled before being run. A stored procedure can sometimes reuse an execution plan if a corresponding one exists...but so can parameterized SQL.

Edit: Here's what MSDN says about it:

SQL Server 2000 and SQL Server version 7.0 incorporate a number of changes to statement processing that extend many of the performance benefits of stored procedures to all SQL statements. SQL Server 2000 and SQL Server 7.0 do not save a partially compiled plan for stored procedures when they are created. A stored procedure is compiled at execution time, like any other Transact-SQL statement. SQL Server 2000 and SQL Server 7.0 retain execution plans for all SQL statements in the procedure cache, not just stored procedure execution plans.

Advantages: Provides a "public interface" to a database (another abstraction layer).

Also groups all queries at the same location, making it easier for DBAs to see how the database is queried and optimize it accordingly.

Disadvantages: May not be the best place to put complex logic. However, following the idea that complex logic belongs in application code and not in stored procedures, stored procedure become simply CRUD operations (each table has a "Create", "Read", "Update" and "Delete" procedure). In that case, stored procedures don't add any value to the application, they only complexify maintenance and become waste.

Queries are all grouped together, so it's harder to see the context of the application where they are being used. Analyzing the impact of a change is longer, and doing the change is longer as well.

Therefore: use stored procedures to encapsulate complex queries (complex joins, complex where clauses, ...). But don't use stored procedure for complex application/domain/business logic, and don't use stored procedures for CRUD either. So stored procedures should be used in a minority of cases rather than be the standard tool for all queries in an application.

Group code (including queries) to achieve "functional cohesion" instead of grouping by tool/technology. To allow a DBA to optimize a database based on how it is being queried, use a profiler.

By using SPs, you also avoid having to give users direct access to tables. All access can be controlled via the SPs.