The Rise of Data Exchanges: Frictionless Integration of Third-Party Data
Data exchanges are emerging as a key component of the data economy. By connecting data suppliers and consumers through a seamless experience, data exchanges have created a modern-day goldrush to help modern, digital organizations address their insatiable hunger for data. And, by eliminating the friction from finding, acquiring, and integrating data, these exchanges make it easy for any company to monetize its data assets and create new revenue streams.
To succeed, data exchanges need a robust data sharing platform that delivers transparency, trust, quality, security, and integration. The best data exchange platforms mimic the value proposition of leading consumer marketplaces, such as Amazon.com, Spotify, and Apple iTunes, by addressing the four Cs: convenience, cost, completeness, and community. These modern data exchanges reduce the traditional barriers that have made it nearly impossible for organizations to find, acquire, and integrate third-party data.
A host of companies are launching data marketplaces to facilitate data sharing among data suppliers and consumers. Some are global in nature, hosting a diverse range of data sets, suppliers, and consumers. Others focus on a single industry, functional area (e.g., sales and marketing), or type of data. Still others sell data exchange platforms to people or companies who want to run their own data marketplace. Cloud data platform providers have the upper hand since they’ve already captured the lion’s share of data consumers who might be interested in sharing data.