Laws change rapidly due to factors such as globalization, technological advances and changing social norms. Each new law comes with its own set of rules and requirements, further confusing IT managers about compliance.
The complexity of the technology stack of companies has worsened with the stacking over the years of solutions, each specialized in its field to cover the varied needs of companies. These tools can have their own data architectures, making it difficult to integrate seamlessly into existing systems or with each other.
Indeed, the term “data integration tax” refers to the additional costs and efforts associated with integrating these various point solutions. These costs can be financial, in terms of purchasing integration tools or hiring experts to manage the integration. They can also work, because integrating various systems often involves complex processes that can be time-consuming and error-prone.
This is undoubtedly at the origin of the concern of decision-makers. According to a study by Cloudera, 84% of French IT decision-makers are concerned about the compliance of their data. This high percentage shows that compliance is not only a regulatory issue, but also an essential component of companies’ data management strategy.
The constant fear of losing control over data
The Evolve Data Study was conducted (between March and April 2023) among 850 IT decision-makers responsible for data analysis within their organization across EMEA: UK (200), France (200), Germany (200), Spain (100), Italy . (100), Middle East (50). Respondents work in organizations with more than 1,000 employees in the following industries: finance, banking, insurance, manufacturing, telecommunications, retail and e-commerce, health and life sciences, government and public sector, technology and software, energy, education, media, leisure and entertainment.
Another noteworthy point of the study is the fear expressed by 65% of respondents about the loss of control over data within their organization. This concern is symptomatic of the challenges presented by managing increasing volumes of data in a complex technological environment based on various dependencies and architectures. IT managers thus express the difficulty of maintaining a balance between the effective use of data and compliance with regulatory constraints.
Partitioning data into silos is an obstacle
The study also highlights that 60% of IT decision makers believe that data siloing hinders their ability to comply with regulations. This silo problem, often caused by the use of different data management solutions, creates silos that make it difficult to access and manage information in a unified way. As a result, it is becoming increasingly difficult for businesses to manage their data consistently and compliantly.
Additionally, 84% of respondents say that integrating point solutions for data analysis and management makes compliance even more complex. This piecemeal approach, while it may seem useful in the short term for specific needs, actually results in increased complexity and operational costs. As a result, businesses face what could be called a data “integration tax,” where the cost and effort required to integrate various solutions significantly increases the overall cost of data management.
Respect must be constant and pervasive
More than 8 out of 10 French IT decision-makers (82%) believe that this integration has led to an increase in data-related costs. This situation is aggravated by the fact that a quarter of the respondents (25%) consider the integration of these solutions as a major challenge. Additionally, the study reveals that businesses spend more than a quarter (28%) of their annual IT budget on data management. This figure is indicative of the importance and cost of data management in the modern business environment.
“As data continues to grow, compliance remains a major challenge for many organizations. Emerging innovations such as AI will add more complexity and, with new regulations looming, it will be increasingly complex to remain compliant, comments Sophie Papillon, regional vice president France at Cloudera. Organizations must now view data as a critical asset, ensuring compliance is maintained consistently and pervasively..