While data governance has been a business need for years, it is becoming more visible as a center-stage business concern. Driving this shift are new regulations and new requirements addressing consumer data ownership, privacy, and business data monetization.
Two of the most important regulations are the European General Data Protection Regulation (GDPR), and the Basel Committee on Banking Supervision regulation 239 (BCBS 239). Forrester recognized this change three years ago when we described the evolution of data governance away from “data input quality” toward “data usage,” which we call data governance 2.0.
Some emerging data governance solution vendors, like Collibra and GDE, have moved aggressively to address the new requirements of data governance 2.0. However, larger established vendors like IBM, Informatica, SAS, and SAP have moved more slowly, instead prioritizing investments in developing a platform supporting systems of insight.
Two recently announced acquisitions demonstrate that the larger established vendors now recognize the need for renewed data governance offerings:
- Informatica’s purchase of the Diaku Axon platform. The acquisition of the Diaku Axon platform adds business-oriented capabilities like vertical knowledge (finance) and support of regulations such as GDPR and BCBS 239 to Informatica’s current data governance execution capabilities (DQ, MDM, security/masking).
There are more to come that we are aware of but which are not yet public. These purchases indicate that platform vendors are moving from technical data governance to business-oriented data governance — going further toward business users, providing more value than just saving costs, and becoming a clear differentiator worthy of investment. We expect to see more acquisition activity, in line with businesses’ need to address a new consumer data protection regime, and business desire to monetize their data assets.
Expect to see more consolidation in the data governance market. Data governance support for the world of big data is becoming a hot topic to support new uses of data such as machine learning, AI, predictive analytics, or even prescriptive analytics. But there are several questions about the priorities for future investments:
There’s no doubt that the battle is only beginning — these purchases do not represent the end of the data governance war.
(About the author: Henry Peyret is a principal analyst at Forrester Research serving enterprise architecture professionals. This post originally appeared on his Forrester blog, which can be viewed here).