When is a Data Utility Not Really a Data Utility?

As more vendors announce their plans to overhaul traditional approaches to data management, the terms ‘utility' and ‘managed service' are increasingly being used interchangeably. However, there is a distinction between the two.
A utility is a multi-tenant environment in which data is aggregated and cleansed once, and the same golden copy is then provided to multiple users. This model is attractive because it is more efficient and therefore cheaper than the common scenario, in which a vendor does the same data management work separately for each of its clients— who, in fact, all have the same requirements.
Like a utility, a managed service has a central, shared platform and operations team, which help to create economies of scale. However, the difference is that the data produced by a utility is completely standardized—exactly the same for all consumers— whereas a managed service produces a bespoke golden copy, tailored to the needs of individual users.
As discussions about utilities progress, it is becoming clear they face a number of obstacles. Utilities are well suited to the management of public-domain data, which they can redistribute freely, but they face a much harder time when dealing with data that is subject to a license.
Some data vendors are happy for the operators of utilities to take their data, manage it and redistribute it to the users of the utility. But the data vendors will, of course, require the users of the utility to pay them for the data they receive. As a result, the utilities have to install metering systems and controls.
Some observers believe that to really qualify as a utility, its operators must source the data themselves, so that it is not subject to redistribution licenses—a requirement that certainly raises the bar for all would-be data utilities.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Data Management
Study: RAG-based LLMs less safe than non-RAG
Researchers at Bloomberg have found that retrieval-augmented generation is not as safe as once thought. As a result, they put forward a new taxonomy to help firms mitigate AI risk.
Friendly fire? Nasdaq squeezes MTF competitors with steep fee increase
The stock exchange almost tripled the prices of some datasets for multilateral trading facilities, with sources saying the move is the latest effort by exchanges to offset declining trading revenues.
Waters Wavelength Ep. 314: Capco’s Bertie Haskins
Bertie Haskins, executive director and head of data for Apac and Middle East at Capco, joins to discuss the challenges of commercializing data.
Nasdaq, AWS offer cloud exchange in a box for regional venues
The companies will leverage the experience gained from their relationship to provide an expanded range of services, including cloud and AI capabilities, to other market operators.
Bank of America reduces, reuses, and recycles tech for markets division
Voice of the CTO: When it comes to the old build, buy, or borrow debate, Ashok Krishnan and his team are increasingly leaning into repurposing tech that is tried and true.
Navigating the tariffs data minefield
The IMD Wrap: In an era of volatility and uncertainty, what datasets can investors employ to understand how potential tariffs could impact them, their suppliers, and their portfolios?
Project Condor: Inside the data exercise expanding Man Group’s universe
Voice of the CTO: The investment management firm is strategically restructuring its data and trading architecture.
Tariffs, data spikes, and having a ‘reasonable level of paranoia’
History doesn’t repeat itself, but it rhymes. Covid brought a “new normal” and a multitude of lessons that markets—and people—are still learning. New tariffs and global economic uncertainty mean it’s time to apply them, ready or not.