Modern Data Stack: The Path to Faster Results and Data Empowerment

Renato Pezzotti & Marlon Weiss | January 18, 2023

A reduction in operational costs and flexible access to storage and computing resources has accelerated the implementation of Modern Data Stacks (MDS). This technology enables organizations to achieve quicker results and empowers them to rely on their data for decision-making.

Marlon Weiss, Data Studio Manager, and Renato Pezzotti, Systems Development Specialist, are two expert engineers who presented their unique perspectives and thought leadership on the top 10 technology trends shaping the next generation of technology. Marlon and Renato spoke to us about Modern Data Stack, a combination of architecture concepts, best practices, and tools – usually hosted on the Cloud – that simplify how an organization addresses its data needs in terms of storage, integration, analysis, and governance. 

 

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What is Modern Data Stack (MDS), and what is it used for? 

Modern Data Stack, or MDS, is a set of tools and best practices implemented to host data solutions. It enables organizations to extract value from data without making significant investments or worrying about maintaining complex infrastructure.  

 

Why is Modern Data Stack a trend that will shape business in 2023? 

The ability to extract value from data is becoming increasingly important for all kinds of businesses. As MDS directly contributes to cost-effectively achieving this goal, it will become more important, too.  

 

Why did Encora select MDS as a rising trend in 2023? 

These days, the phrase “data is the new oil” is being used to describe how valuable data has become. It is more than just an asset; it is a key leverage asset and product. As specialists, we do not foresee this trend losing strength soon. Modern Data Stack will remain a rising trend in the market over the coming years.  

 

What makes Modern Data Stack different from traditional enterprise application development?  

It is decisively different from traditional approaches since it is primarily cloud-based. It differs even further due to its greater flexibility and scalability compared to conventional software development. 

 

Can you tell us about your experience with Modern Data Stack?  

Marlon: Along with our Data Studio, I’ve helped customers build and modernize their stacks, selecting the right tools and architecture based on their business needs.  

Renato: For over 18 years, I have developed and implemented data solutions across several industries, working in hybrid (Cloud and on-premises) environments during the past decade. For most of my career, I implemented business intelligence solutions. I worked with tools such as Cognos, MicroStrategy, Business Objects, and Pentaho, as well as ETL tools like IBM Infosphere DataStage and Informatica PowerCenter. Over the last ten years, I’ve seen the birth of numerous tools and technologies, such as those that enabled the creation of Data Lakes (e.g., Hadoop and Spark). I have been involved in the integration of these worlds ever since. Choosing the right tools will depend on many factors, for instance, business needs, data characteristics, performance, and time-to-market.

 

In your experience, where do clients stand on the topic? 

Our clients are increasingly adopting MDS tools. Those starting from scratch ask for help when selecting tools that will enable them to grow, while others ask for advice on migrating or improving their existing stack. Every client we have had contact with has had a growing need for more efficient data processes and tools. When selecting and using these tools, we have seen a variance in maturity. In addition, there is a strong need to improve legacy technologies among clients.  

 

How can Encora help clients evolve? 

We help customers to create or improve their data architecture, assisting them in choosing the correct tools for their needs. Additionally, we help to create and maintain their data pipelines.  

 

How will Modern Data Stack impact software & digital product engineering? 

Data is now part of every digital solution. New products must consider this, and MDS can help simplify data extraction, transformation, storage, and analysis. 

 

Can you give us real-world examples of how organizations are benefiting from Modern Data Stack today? 

One of our clients transferred their existing infrastructure to save on maintenance costs and simplify the complex code required to load and transform their data. 

Another customer — a small startup company — needed to extract value from their data. MDS enabled them to create a Data Warehouse, consolidating data from different sources without requiring significant investment in less than a month.  

 

Who exactly stands to benefit from Modern Data Stack the most? 

Small and medium businesses will benefit from MDS because it enables them to extract value from their data at reasonable costs. Without these new tools, they would be unable to afford it.  

Larger companies benefit because internal departmental initiatives can now be leveraged much faster without going through complex infrastructure and software acquisition processes. 

 

How does Modern Data Stack fit into larger IT and business initiatives? 


Being Cloud-based, with MDS, any data need related to larger initiatives can be deployed amazingly fast and without much upfront investment. 

 

What does Modern Data Stack mean for privacy and compliance? 

Many MDS tools are already certified and comply with regulations; for example, you can find HIPAA-compliant tools. 

Privacy is also taken into consideration when creating tools. One may think this can be considered an improvement compared to some traditional solutions, but it continues to be a challenge. While some areas have been improved, new threats and failure points are introduced by Cloud-based solutions; higher volumes of data also mean that issues can be more harmful. As a result, privacy continues to be a challenge, the same way it was before. Therefore, proper controls should be established and periodically reviewed. 

 

We sincerely thank Marlon Weiss, Data Studio Manager, and Renato Pezzotti, Systems Development Specialist. The focus of this piece, Modern Data Stack, is one of ten technology trends featured in Encora’s 2023 Technology Trends eBook. You can read the eBook in its entirety by visiting Encora’s 2023 Technology Trends. 

“Modern Data Stack is the evolution of the traditional data stack that is used to host on-prem OLAP and business intelligence solutions. It’s about combining the best-in-class tools for each need and flexibility. MDS supports different sized companies, from the small startup to the big data-driven companies, providing the benefits of a pay-as-you-go model instead of requiring upfront investment.” 

 Marlon Weiss, Data Studio Manager, and Renato Pezzotti, Systems Development Specialist 

 

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References 

  1. Neptune.ai. What’s So Modern about the Modern Data Stack? 
    https://neptune.ai/blog/modern-data-stack 
  2. Fivetran. What Is the Modern Data Stack? 
    https://www.fivetran.com/blog/what-is-the-modern-data-stack 

 

About Encora 

Encora is a digital engineering services company specializing in next-generation software and digital product development. Fast-Growing Tech organizations trust Encora to lead the full Product Development Lifecycle because of our expertise in translating our clients’ strategic innovation roadmap into differentiated capabilities and accelerated bottom-line impacts. 

Please let us know if you would ever like to have a conversation with a client partner or one of our Innovation Leaders about accelerating next-generation product engineering within your organization. 

 

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