By Bob Renner, CEO, Liaison Technologies
Liaison has been betting big on cloud MDM (Master Data Management) for a while now. As we see it, cloud MDM is the most efficient, flexible, scalable and cost-effective way to achieve that elusive single source of truth. We wanted to know if others see it this way too; so earlier this year, we commissioned Forrester Consulting to survey IT decision-makers regarding their plans for deploying cloud MDM. (See the survey report here.)
Not surprisingly, 55% of those surveyed are already using, piloting or evaluating a cloud MDM solution. In addition to adoption insight, Forrester’s research also provides insight into the perceived benefits of cloud MDM, with the most frequently cited benefits being faster implementation times, fewer internal resources and easier to use.
With each of these benefits, there is an implicit comparison being made: faster implementation, fewer resources, easier to use… This comparison, of course, is to traditional on-premise MDM solutions. So is it that on-premise MDM is great, and cloud MDM is just that much greater? Or was there already a lot of room for improvement?
I think it’s a combination of both. There are benefits driving the adoption of cloud MDM that only cloud-based solutions can bring, but there are also negatives spurring this growth: the high cost, yet substandard success rate, of on-premise MDM. According to a study reported on by CIO in 2013, the average cost of a master data management solution was $3 million in 2013. Also reported by CIO, 19% of large companies surveyed in 2012 disclosed that their MDM implementations were not broadly successful.
In light of these statistics, companies are now looking toward more agile, cost-effective platforms that minimize financial risk. Cloud MDM, with its significantly lower upfront costs and pay-as-you-go pricing model, is a logical next step. Implementations can be scaled, revised or even terminated without concern for lost investment in shelved software and hardware.
It’s exciting to see more and more data applications and services moving to the cloud. MDM may be one of the more recent technology disciplines to begin the transition, but it certainly won’t be the last.