Home

The Race to Build Industry Data Clouds

 ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

The Race to Build Industry Data Clouds

Snowflake and Databricks are the latest to introduce industry-specific data apps and services

Hello to all of the new Cloud Database Report subscribers — it’s great to have you with us!

The database industry is rapidly moving in the direction of deeper industry-specific specialization. This trend is being driven in part by a growing requirement for domain expertise — businesses want to work with tech companies that understand the dynamics of their market — but there’s an essential data-management component to it, as well.

Within each industry, there are idiosyncrasies in areas such as data types, transactions, analytics, business processes, and governance. Industry data clouds package cloud infrastructure, applications, and other technologies (AI, ML, etc.) for implementation by organizations within particular industries.

Snowflake is the latest cloud database provider to introduce new vertical-industry solutions, but it’s by no means the only one. Oracle is spending $28.3 billion to acquire Cerner, which will bolster Oracle’s offerings in the $3.8 trillion healthcare market. Databricks, Google Cloud, Microsoft, SAP, Teradata, and others are likewise building and expanding their know-how and data services across industries.

Recent Developments Include:

  • March 28 - Snowflake announced its Retail Data Cloud, which allows retailers, distributors, and CPG companies to integrate and share data, including third-party datasets from Snowflake’s marketplace. There are also prebuilt apps and solutions from global consulting companies and other partners.

  • March 17 - Snowflake launched a Healthcare & Life Sciences Data Cloud, which allows for data integration/sharing similar to its Retail Data Cloud. There’s also an emphasis on healthcare industry data governance, with support for HIPPA, HITRUST, FedRamp, and GxP (Good Practice) compatibility audits. Also, the alphabet soup data model known as OHDSI OMOP, which in plain English stands for Observational Health Data Sciences and Informatics.

  • March 9 - Databricks introduced a Lakehouse for the Healthcare and Life Sciences, a single platform for data management, analytics, and AI. There are industry-specific solutions for disease risk prediction, digital pathology classification, and more. Early adopters include GE Healthcare, Regeneron, ThermoFisher, and Walgreens. In February, Databricks announced a Lakehouse for Financial Services and, in January, one for Retail.

The Wider Trend

Industry data clouds (emphasis on data) are emerging in lockstep with the broader trend of industry clouds, which are similar in concept but wider in scope. AWS, Google Cloud, Microsoft, Oracle, Salesforce, SAP, and others are building and expanding industry clouds at a breakneck pace.

In one example among many, Microsoft announced general availability of the Microsoft Cloud for Retail in January. More recently, Microsoft closed the acquisition of Nuance, which specializes in conversational AI and “ambient intelligence,” with domain expertise in healthcare, financial services, telecom, retail, and other industries. Microsoft now offers industry cloud solutions in automotive, consumer goods, education, energy, finance, government, healthcare, manufacturing, media, retail, and telecom.

Industry data clouds focus on the data layer — data management, integration, sharing, collaboration, insights, and other data goodness. They promise a range of benefits to the organizations that tap into them.

5 Benefits of Industry Data Clouds

  1. Innovative customer experiences. When database platform providers have a high industry IQ, they can provide data-driven solutions that consumers care about. For example, the Microsoft Cloud for Retail can be used to establish sustainable supply chains that appeal to consumers looking for environmentally friendly products.

  2. Breakthrough data products. Snowflake offers the example of an online grocery platform that developed an app that provides visibility into purchasing trends on tens of thousands of SKUs across 55,000 store locations.

  3. Buttoned-down governance. I already mentioned Snowflake’s support for a handful of governance requirements in healthcare (see above). Here’s another example for government agencies in the public sector. Snowflake provides support on Azure and AWS for International Traffic in Arms Regulations (ITAR), which include, among other things, technical data.

  4. Rapid adoption of emerging tech. As noted, the Microsoft-Nuance combo aims to fast track conversational AI for industry scenarios. Another case in point is Google Cloud’s alliance with C3 AI to accelerate adoption of AI in finance, healthcare, logistics, manufacturing, and telecom. And Oracle cites an opportunity with Cerner to help customers use cloud, AI, ML, and other innovations to make care more accessible and effective for both patients and caregivers.

  5. Lower complexity. There’s an opportunity to shift some of the heavy lifting of data infrastructure — integration, tools compatibility, data distribution, etc. — from the business customer to the technology providers. For example, Snowflake and AWS are working together to provide demand forecasting for retailers and CPG companies. That makes it easier for those customers to import and analyze data that originates from multiple sources.

What’s Next for Industry Data Clouds?

Another twist on this phenomenon is that the Big 3 cloud providers — AWS, Google Cloud, and Microsoft — are striking far-reaching alliances with major players within industries that combine their respective strengths.

In Q4 of 2021, Google Cloud announced a 10-year, $1 billion partnership with CME Group to transform the global derivatives market, working together to provide clients with real-time data and analytics capabilities, among other products and services.

Similarly, AWS teamed up with Goldman Sachs to provide new data management and analytics solutions for financial institutions.

All of the above has happened within the past few months. While the activity is picking up, we’re still in the early phase of industry-specific data clouds.

Watch for continued innovation in cloud-native, modern data management across industries.

LikeCommentCommentShareShare

You’re a free subscriber to Cloud Database Report. For the full experience, become a paid subscriber.

© 2022 John Foley Unsubscribe
Huntington NY 11743

Publish on Substack

Related Articles

10 Software Development Predictions for 2018

100 Great Supply Chain Partners 2017 Digital Edition

2016 Supply Chain Innovator Of The Year

Use below section to search for ERP Candidates or ERP service providing companies.

If you want to add yourself or your company, please log in and so do. Please send an email to admin of you need any help