Data as a Service (DaaS) is part of the “as a service” offerings that have become increasingly popular since the expansion of the internet in the 1990s. Starting with Software as a Service (SaaS). Similar to other “as a service” models, DaaS provides a way to manage the massive amounts of data that organizations generate every day and deliver that valuable information across the business for data-driven decision-making.
DaaS allows business units to access and utilize their data without needing on-premises infrastructure or maintenance. This seems strikingly similar to the characteristics of the decades-old concept of Software as a Service (SaaS). So what really could be the differentiators, and why would that matter and where would you consider Customer Master Data Management (CMDM) systems in all this?
DaaS providers offer storage solutions for data securely, from the cloud. This data can range from structured to unstructured data and can include databases, files, documents, multimedia, and more. Again, this sounds suspiciously like an application, after all, if you use something like Dropbox or S3 from Amazon, aren’t you basically just doing the same thing?
An expectation is that DaaS includes tools and services for managing the data too, such as data integration, data cleansing, data transformation, and data governance. This is getting a bit more interesting now, cleansing, and transformation (wrangling and data prep) have long been the domain of ETL vendors like Informatica, Matillion, Ataccama, Talend etc, many of whom have recently launched their cloud offerings in addition to still offering solutions for the private cloud or on-premise. The compelling rationale for investing in such technologies remains the elusive promise of improved data accuracy, consistency and compliance.
Such platforms may also provide tools for processing and analyzing data. So at this juncture, we’re now bleeding over into the capabilities of the reporting tools. Some of the same players are present here, more notably Qlik/Talend but there are others too. Tableau introduced a data preparation tool not so long ago, and they are a part of the Salesforce fold. DaaS then, can support querying, running analytics, generating reports, and deriving insights from the data stored in the cloud.
DaaS typically offers APIs for accessing the data stored in the cloud but they may also have clientside applications and rich UI experiences to support these many tasks. Programmatic data lifecycle management is an important capability these days.
It also goes without saying, that there is an expectation about scaling that allows users to easily scale their data storage and processing resources up or down based on their needs. This scalability is particularly important for organizations with fluctuating data volumes or processing requirements.
The role of SaaS MDM
SaaS-based MDM solutions like the Pretectum CMDM, hosted in the cloud, also provide scalability and flexibility, they allow organizations to adjust resources according to changing needs. This lines up with similar capabilities offered by DaaS, where users can scale their data storage, management, and processing capabilities as required. The big difference lies in the data though.
CMDM when offered under a SaaS model, eliminates the need for organizations to invest in on-premises infrastructure and maintenance, making it potentially more cost-effective. Just as with DaaS where pay-as-you-go pricing structures often prevail, allowing users to pay only for the resources they consume. The more data services you use, the more you pay. Pretectum’s pricing model is shaped according to your storage and usage profile.
Where CMDM in particular differentiates, is by providing a single source of truth for master data across the organization of principally 0PD (Zero Party Data) and 1PD (First Party Data). The centralized approach of Pretectum CMDM particularly aligns with the commonplace needs and expectations of the modern enterprise in its quest for a single source of truth (SSOT). DaaS doesn’t necessarily offer this.
SaaS-based CMDM also incorporates a robust data governance and security capability under a role-based access control model. Such features ensure the integrity, confidentiality, and compliance of the customer master data. This may or may not be present in a DaaS platform.
Data as a Service (DaaS) and Software as a Service (SaaS) don’t typically compete, but rather complement one other; principally this is because they have a different focus with DaaS primarily focuses on providing access to data resources, including storage, management, and processing capabilities, over the internet. SaaS focuses on delivering application capabilities in the cloud, allowing users to access and use the software without needing to install it locally.
Data enrichment and augmentation opportunities
Possibly the greatest benefit of DaaS to the modern enterprise is in the context of augmenting or complementing the data within your CMDM through integration, not necessarily displacing customer data mastery within a SaaS application at all. This complementary data may be on-demand access to varied types of data, such as text, sound files, images, and videos, from diverse sources through APIs. It simplifies the process of data access and delivery in different formats, often unifying it using data virtualization.
Leading vendors in the DaaS space are Fidelitone with master data complementary services, Enigma Data, LexisNexis business data, Informatica (formerly AddressDoctor), Urban Mapping providing geography data services, Xignite sources its data directly from exchanges and reputable providers like FactSet, Morningstar, S&P, and others to ensure high-quality and reliable information for its customers, and D&B Hoovers whose offerings are tailored towards sales intelligence and B2B prospecting, providing a wide range of features like company news, org charts, tech insights, and financial data.
In the customer master data management segment DaaS providers offer curated datasets from various sources, including open data sets from major cloud providers like Alibaba Cloud, Azure, AWS, and Google Cloud. Credit agencies like Experian, TransUnion, and Equifax track financial data to provide insights beyond lending, risk scoring, and ID verification; while HIRinfotech offers lead generation services through various channels like SEO, email marketing, LinkedIn, social media, and direct email to help clients source qualified leads efficiently, a lot of their data comes from web scraping. Informatica also assists in organizing contact lists for outbound marketing initiatives.
Others to keep an eye out for, are SafeGraph, ZoomInfo, Nikkei Market Data, Acxiom, LSEG (Refinitiv), Meltwater, and UniCourt. These companies specialize in collecting, sourcing, and selling data as their primary revenue stream. Newer disruptive DaaS companies include Bright Data, Techsalerator, SERPStat, IPInfo.io, Echo Analytics, and LobbyingData.com.
Analysts suggest that DaaS is on the rise but still some years away from high-growth adoption. Major inroads in the DaaS market with consumer data will likely be hampered by the many existing and growing local, regional, national, and international restrictions and control policies being introduced to support privacy for consumers in particular. DaaS suggests that it can enable your business to tap into journey analytics and humanize big data for valuable insights.