This year has been rocked by economic upheavals and geopolitical conflicts with global consequences. The price of energy has skyrocketed, as has the price of basic necessities. After years of monetary easing, the Western world is facing peak inflation. Rising interest rates limit consumer spending, increase housing costs and freeze public budgets. Cryptocurrency and NFTs are well down from all-time highs, with much less trading today than a year ago. In short, the global economy is disrupted. As a result, the company spends on Modern Data Stack projects decreases. In 2023, however, there should be more data projects. They just want to be more focused on a specific use case or improve efficiency in general.
New year, new challenges
Companies will actively seek to standardize their Data Stack in 2023 to limit the number of tools used to date. In addition, the ability to make decisions based on the right data will become increasingly crucial – especially around operating costs and revenues, which are under an increasingly critical eye. In addition, data trust and visibility will be more important than ever. Data security and access to data will also be major concerns in 2023. Governance will allow companies to face new challenges. Good data governance enables analysts to optimize the effectiveness of data teams’ projects. Integration between the various suppliers will thus be widespread and stimulate investment.
Room for collaboration
By 2023, we will certainly see more collaborations between cloud and application security teams. This is a result of an increasing number of companies becoming cloud-native. Vulnerability and risk management, code analysis, threat modeling and secure development processes can benefit from a common approach as more and more application security professionals consider cloud infrastructure in their work and many cloud security professionals adopt traditional application security practices.
New investments on the way?
By 2023 ESG (Environmental, Social and Governance) funds will come under more pressure to measure and prove their impact. Investors who flocked to these funds in a bull market will now have more concrete information about how they will see returns and must prove the positive effects if they are to maintain or grow these investments.
By 2023, companies will begin to realize that adaptive AI success requires a real-time data infrastructure supported by a new understanding of the user experience. Therefore, we will begin to see an increase in investment and activity in this area. Data streaming is also likely to find its way into the modern data stack in the coming year. Like Machine Learning, it will drive new use cases. Data streaming has reached critical mass this year, but is nowhere near reaching saturation point. Organizations will invest, albeit at a slower pace, in streaming technologies as early as 2023.
What about the metaverse?
The metaverse will face significant brakes in 2023. Who in business needs virtual reality or augmented reality kits for everyone (which are in the hundreds of dollars)? Meta is investing billions of dollars in a project with unproven future profitability while its core business suffers, so discretionary investments in the Metaverse are likely to continue. However, we can assume that the focus will be on consumer products and not on business.
The world of data is likely to be disrupted by 2023, and businesses must be ready to respond to its upheavals and evolve as fast as their data if they want to keep up.
Irina Slavitch, Data Integration Expert, at Fivetran