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What is Data Fabric and Why are Businesses Using It?

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The MicroStrategy Team

September 11, 2024

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Data is the modern currency. But, with so much data available nowadays, businesses often struggle with efficiently managing, integrating and accessing it when it’s scattered across multiple platforms.

This is where data fabric comes in.

It’s a new technology that solves these problems by giving businesses a simplified way to connect different data sources, automate processes, and ensure on-demand access to useful insights.

It’s an end-to-end data integration and management solution that makes it much easier to access data from disparate sources in real-time.

In this article, we define data fabric, explore its benefits and drawbacks, look at which organizations can use them, and more.

What is data fabric?

Data fabric is a technology architecture, meaning a system of technologies, processes and software, designed to simplify and unify the management, integration and accessibility of data across different platforms.

It uses data management tools, machine learning algorithms, and data governance frameworks to produce a seamless user experience and ensure data quality.

Think of data fabric like a central nervous system connecting the various parts of the body and sending and receiving signals from the brain.

The user or the organization is the brain and the network of nerves connecting everything is the data fabric. It allows information to flow between sources, giving the brain real-time knowledge of what’s going on across all data points.

Once set up, anyone in an organization can access the same data through a consistent user experience. Businesses can automate data management, ensuring the right information is available when it’s needed, and teams can make real-time decisions based on accurate and unified data.

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How does data fabric work?

A data fabric works by creating a layer of metadata, which is information about the data itself, that helps users manage and access both structured and unstructured data. A data fabric doesn’t physically move data. Rather, it uses data virtualization to allow users to work with the data without needing to copy or move it.

At the same time, AI automates processes like data integration, cleaning, and optimization. This makes finding, managing, and using data across different platforms much easier without moving or duplicating information. Here are some of the key components of data fabric:

  • Data lakes and data mesh: Data fabric allows you to use your existing infrastructure, like data lakes, while introducing new technologies, like data mesh, to improve data governance.

  • Data orchestration: Instead of manually transferring and cleaning data from different sources, data fabric can automatically collect, integrate, transform, and prepare data for use.

  • Security: Data fabric is built with security as a core focus, with features that protect sensitive data as it moves through the system. This keeps data secure from the moment it enters the system to when it’s accessed.

These components, plus a few others like metadata management and AI integration, come together to form a comprehensive framework.

But, it’s important to note, no single vendor typically delivers all the components of a data fabric. Most organizations have to combine tools and solutions from different vendors to create a complete data fabric.

What problems does data fabric solve?

Data fabric has become an essential tool for many businesses because it simplifies how they manage and access data.

Traditional data integration methods are no longer working because businesses now handle vast amounts of increasingly complex, disparate data from multiple sources.

Data fabric addresses these challenges with a new framework enabling real-time data processing, as it’s a system that connects all data sources and makes information readily available to users. Here are some specific problems data fabric solves:

Data silos

Many organizations store data in separate systems across different departments and platforms. This is like having useful information locked away in a room that not everyone can access.

It creates situations where teams don’t have access to complete information, which can hinder decision making.

Data silos also increase the risk of duplications and errors. Data fabric connects all these systems and allows data to flow between them, giving users comprehensive insights based on all available information.

Slow decision-making

When the latest information isn’t readily available, businesses risk making decisions based on old insights. Waiting for the latest insights can also result in slow decision making.

Data fabric solves this by enabling real-time data access, allowing businesses to make smarter decisions at greater speeds.

Data management complexity

When handling huge amounts of complex data, management and governance become significant challenges. Data fabric makes it easy to manage, clean and integrate data, streamlining and automating various data management processes.

It also makes complying with regulations like GDPR and CCPA simple because it enforces consistent data government and security policies across all platforms.

Simply put, organizations use data fabric because it lets them make use of all their different, spread out data, ensuring every bit of information contributes to a single, intelligent perspective.

At the same time, it makes important activities like data integration, governance, security, and general management more efficient by automating processes and giving real-time access to reliable, well-governed data.

Benefits of using data fabric

Data fabric can help many businesses, but particularly those that are spread out geographically and use various data sources. Growing businesses are often overwhelmed by the large volumes of data stored in various places and systems, as it becomes increasingly difficult to integrate, access and use it. Data fabric offers several benefits that remedy these issues:

1. Central access to disparate data

One of the main benefits of data fabric is its ability to unify data stored in various locations and make it available to entire organizations. Whether storing data in the cloud, on various platforms, or on-premises, data fabric enables a central view of all data sources.

This removes the problem of data silos, making it easier for teams in different departments or locations to find and use the information they need. Overall, this results in better decision-making throughout the organization because everyone can access the same high-quality data.

2. On-demand data

Organizations that rely on fast insights for operational and strategic decision-making benefit hugely from data fabric, as it enables real-time access to all stored data. Whether monitoring customer behavior, managing inventory or analyzing financial trends, data fabric provides real-time insights so businesses can adapt quickly to market or operational shifts.

This instant access to important data can give businesses a crucial edge over competitors, optimize workflows, and make them more agile.

3. Automated data management

Due to the volume and complexity of data collected by organizations nowadays, too much time is spent on data logistics rather than actually learning from the data. Collecting, organizing, cleaning, integrating, and transporting data has become a significant job in and of itself.

Data fabric can automate many of these processes, leading to a far more streamlined approach. The partial removal of human input saves time and reduces errors. Automation also keeps data up-to-date and readily available, improving efficiency and lowering operational costs.

4. It’s scalable

Data fabric can scale with your business and help you manage large volumes of data without disruption. It can help you integrate new data sources, whether from growing datasets, acquisitions or cloud migrations.

This means you’re able to adapt quickly to changes without overhauling your entire data infrastructure.

Data fabric will maintain unified access and management as you add new applications and systems, making it a future-proof solution that adapts alongside your data strategy.

What are the potential downsides of data fabric?

While data fabric is a great solution for many organizations, it’s not suitable for everyone. If your organization lacks the sufficient technical resources or has smaller data operations, the cost and complexity of setting up and maintaining a data fabric could outweigh the benefits. Here are potential drawbacks to be aware of:

1. High implementation cost

While the long-term benefits and cost savings are significant, there’s a hefty upfront investment associated with setting up a data fabric. You may need to purchase new tools, software, and infrastructure to support it.

Further, you may need to invest in hiring or training staff with the right skills and experience to manage the data fabric and get the most value from it. These initial costs could prevent smaller organizations from being able to set one up.

2. Complex integration

Once set up, a data fabric simplifies data management significantly, but the process of integrating one into existing systems is complicated.

If your organization uses legacy systems or highly customized platforms, you may encounter difficulties in connecting all your data sources to the fabric.

This should present no real problem to organizations with a sufficient budget, though it can involve a longer implementation time and the need for specialized technical support.

3. Security and governance risks

Data fabric is intended to strengthen security and governance, but it can also introduce new risks if not properly managed due to its distributed nature. The complexity of the fabric can lead to gaps in security and governance policies.

For example, when data is spread across different environments, ensuring uniform compliance with regulations like GDPR and CCPA can become difficult. The sheer volume and diversity of data can create blind spots, so careful monitoring is required at all times to prevent vulnerabilities and compliance issues.

The Future of Data Management: Embracing Data Fabric

Data fabric is changing the way businesses manage and access information, helping them deal with the complexities of managing large volumes of data from various sources.

It’s an option that works for many organizations, particularly those who want to get rid of data silos, improve operational efficiency, and find a scalable solution as data needs grow.

But, it’s important to weigh up the potential advantages against the significant upfront investment of time and money. Ongoing governance is also required to fully realize its potential and mitigate security risks.

If data fabric is a suitable solution for your organization, implementing it can provide a solid foundation for data-driven success in a world of ever-increasing business intelligence.

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MicroStrategy and Your Data Strategy

Data fabric's ability to unify and streamline data access has the potential to revolutionize how businesses leverage their data assets. To learn more about data strategies, check out how platforms like MicroStrategy can help you use data effectively. We invite you to explore this resource:

  • World 2024: What's Your Data Strategy? - Discover how innovative approaches like data fabric are challenging traditional data management paradigms and explore their potential impact on your enterprise BI implementation.


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