Is vendor and data consolidation enough to save money?

Albert Wong
2 min readSep 30, 2024

--

Is vendor and data consolidation enough to save money?

Consolidation is a popular buzzword in the business world, and for good reason. On the surface, it seems logical. By reducing the number of vendors you work with and consolidating your data into a single platform, you can streamline processes, eliminate redundancies, and ultimately save money. This logic isn’t entirely wrong. Vendor consolidation can lead to cost savings through volume discounts when negotiating with a single supplier for multiple services. However, there’s a hidden cost associated with this approach: lock-in.

While you might gain some savings upfront, consolidating all your needs with one vendor creates a situation where you’re heavily reliant on them. This lack of competition can lead to complacency from the vendor, potentially hindering innovation and ultimately impacting the quality of service you receive. Additionally, switching vendors down the line becomes a much more complex and expensive process.

So, what’s the answer? The key lies in interoperability. By ensuring your systems can communicate seamlessly with each other, regardless of vendor, you unlock the power of choice. This allows vendors to compete for your business, driving innovation and potentially lowering costs. More importantly, you gain the flexibility to pick “best of breed” solutions, selecting the best vendor for each specific need.

The good news is, technology is making interoperability a reality. Companies like Onehouse are revolutionizing data management by providing open, vendor-neutral data lakehouses. These platforms store data in multiple formats and support duplication, ensuring compatibility with all types of SQL query engines, AI/ML frameworks, and analytics tools. This allows you to leverage the power of your data without getting locked into a single vendor ecosystem.

Ultimately, while consolidation can offer some initial cost savings, it’s a short-sighted approach. By embracing interoperability and leveraging open data platforms, you gain the power of choice and flexibility, allowing you to truly optimize your vendor landscape and ensure you’re getting the best value for your money.

--

--

Albert Wong

#eCommerce #Java #Database #k8s #Automation. Hobbies: #BoardGames #Comics #Skeet #VideoGames #Pinball #Magic #YelpElite #Travel #Candy