Why You Should Adopt a Composable Data Architecture (2024)

Modern business data strategy is a paradox: companies want control over their internal systems, but they don’t want to do the tedious work or devote the precious man-hours required to get that control. However, within the modern data ecosystem, a fully composable data architecture is the most logical and rewarding way to achieve the data systems you want for your company.

The Challenges of Modern Complexity

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As workers in the data analytics field, we have all experienced the complications that arise as more and more cloud apps are brought into the mix.

  • Vertical scaling has shifted to horizontal scaling, wherein companies add standardized applications for every arising need instead of piling resources into expanding existing processes (e.g., One system which included invoicing, inventory management, HR, and project management is replaced with individual applications, rather than adding functionalities to the existing system).
  • A few intensive API endpoints have become many lightweight endpoints, each with its own documentation and requirements.
  • Rapidly-changing needs mean that a company’s entire data infrastructure may need to change suddenly (i.e. migrating to a more capable data warehouse, adding integration tools, or just the constant addition of new cloud software to daily business workflows).

And of course, constantly shifting components and data volumes lead to extremely unpredictable costs if one does not account for the necessity of new tools and software. So how does a company plan for the future when the environment is this unpredictable?

One-Stop Solutions Will Stagnate

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It’s always tempting, when faced with the option of an “all-in-one” solution (such as a Customer Data Platform, or CDP), to spring for it—the inclination to save time, effort, and brain space by keeping all of your operations consolidated to one tool is powerful. However, CDPs are often not designed with quick changes in mind, and many companies would find their “complete” system soon rendered obsolete. That’s a lot of time and money to be spent on a system that will ultimately not be able to adapt to suit your needs.

Composable Infrastructure: Lower Costs, Better Expertise

A composable data architecture, that is, one built from the ground up and constructed of individual components, is the surest way to create a data infrastructure that ideally suits the needs of any company (and is especially suited for Marketing use cases).

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Each element of a composed architecture specializes in its purpose, be that ETL, data quality, storage, analytics, etc. The result is an infrastructure that is optimized from head to toe and can provide feedback to each other element. This is opposed to the generalist, all-in-one solutions that lack the expertise and sophistication to manage all elements of the infrastructure effectively. Think of an advanced gamer—purchasing a desktop computer would allow her to buy better graphics cards and extra RAM for increasingly higher-powered games, as opposed to a laptop that doesn’t allow such incremental improvements.

In addition, when it comes to price efficiency, a composable architecture is one of the most cost-effective paths to take. Each component added gradually means that company leaders can better predict the costs of their data stack as it develops and better plan for inevitable changes to come. Plus, with so many free/open-source tools available on the market, the ROI potential has never been higher.

Look for Scalability and Adaptability First

When choosing the elements of your data stack, the flooded market can be overwhelming. However, it’s important to remember that preparing for a changing future is paramount in an industry where the landscape changes month to month. Thus, look for tools and platforms that:

  • Focus on scalability and adaptability to suit a company whose data needs are ever-developing.
  • Prioritize integration and interoperability with other systems to suit the addition of tools to the architecture over time.

That said, most companies are not ready to immediately manage the multiple clouds and other operational challenges of this architecture paradigm. It’s important to strategize in advance, designing your application portfolio keeping future goals in mind, as you move into the automated cloud sphere.

If you choose to enlist the services of a firm or agency to help with deployment, be sure to research those firms that can offer consultation in the area of application portfolio rationalization, and which focus on building a roadmap for public cloud infrastructure as a service (IaaS).

With a data architecture built piece-by-piece, over time, according to your organization’s specific needs, you will be well-prepared with an infrastructure that can weather the unpredictability of the analytics world.

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Why You Should Adopt a Composable Data Architecture (2024)

FAQs

Why You Should Adopt a Composable Data Architecture? ›

You should go with a composable architecture for a few simple reasons: It lowers your costs by reducing the time it takes for upgrades. It gives you more options to swap vendors as your business changes. It offers better performance, especially for your mobile customers.

Why is composable architecture important? ›

Composable architecture can make it easier to maintain and update systems, as components can be modified and replaced individually rather than having to make changes to the entire system. This can save time and resources and reduce the risk of disruptions to the system.

What is composable data architecture? ›

You'll learn: Composable architecture is a modern approach that allows enterprises to assemble independent and reusable components to create digital experiences.

Why is a good data architecture important? ›

Well constructed data architecture can offer businesses a number of key benefits, which include: Reducing redundancy: There may be overlapping data fields across different sources, resulting in the risk of inconsistency, data inaccuracies, and missed opportunities for data integration.

What are the benefits of composable CDP? ›

A Composable CDP provides complete control over collection, modeling, and storage and offers the flexibility to create and activate audiences using the entirety of your first-party customer data. Traditional CDPs live separate from your broader data warehouse, and their components are tightly coupled.

Is composable architecture good? ›

As composable architecture is based on a set of building blocks, you're able to add, replace, and enhance parts of your system along the way. This provides endless flexibility. It allows you to optimize every part of your system and enables you to work on a more granular level of your architecture.

What are the disadvantages of composable architecture? ›

Flexibility via a Composable Architecture

Con: This flexibility may introduce complexity, requiring a skilled development team to integrate and manage the diverse components effectively.

What is composable architecture for dummies? ›

At its core, composable architecture is an approach to designing and building applications by assembling independent, self-contained, and interchangeable components. Each component serves a specific purpose and has well-defined boundaries.

What is the difference between composable architecture and microservices? ›

Composable architectures often encompass a wider range of components and potentially larger services than microservices architectures. On the other hand, microservices can be employed with APIs to create composable technologies. In this way, microservices can be a specific implementation of composable architectures.

What are the three layers of data architecture? ›

Three-tier architecture is a well-established software application architecture that organizes applications into three logical and physical computing tiers: the presentation tier, or user interface; the application tier, where data is processed; and the data tier, where application data is stored and managed.

What is the goal of data architecture? ›

Data architecture is a discipline that documents an organization's data assets, maps how data flows through its systems and provides a blueprint for managing data. The goal is to ensure that data is managed properly and meets business needs for information.

What are the risks of not having a data architecture? ›

2 Data security risks

Without a data governance framework, you may expose your data to security risks that can compromise your confidentiality, integrity, and availability. Data security risks can include unauthorized access, data breaches, data loss, data corruption, data tampering, and data leakage.

What is the difference between composable CDP and traditional CDP? ›

A traditional CDP bundles collection, storage, modeling, and activation into a single platform, whereas a Composable CDP enables you to activate your data using your existing data collection, storage, and modeling practices.

What are the benefits of composable DXP? ›

A composable DXP integrates with solutions across the full organization (e.g., marketing, sales, customer support, etc.). As such, brands can control omnichannel content management, customer data, and analytics. This drives connected and consistent customer journeys, which increases customer retention.

Why is CDP better than DMP? ›

Use a CDP if you want to collect and use first-party data in a systematized way for many different purposes, from A/B testing to audience building. Use a DMP if you want to use third-party audiences to inform targeting in your digital advertising campaign.

What are the benefits of composability? ›

With a composable infrastructure, organisations can instantly and dynamically provision both hardware and software using a unified API. This allows resources to change based on either a specific application or system workload. This flexibility enables infrastructure to be more responsive to the organisation's needs.

What is the significance of component architecture? ›

It provides a higher level of abstraction and divides the problem into sub-problems, each associated with component partitions. The primary objective of component-based architecture is to ensure component reusability.

What is the importance of sustainable architecture? ›

Sustainable architecture is not only energy-efficient and healthier for its inhabitants, but it also benefits the planet. By reducing our reliance on non-renewable resources (fossil fuels such as coal and oil), green architecture can actually promote and maintain a cleaner environment.

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