September 25, 2022

Technology has brought a lot of advancement to the world of business. Advancements in the fields of tech and communication over the last several decades have connected the world in new and exciting ways, and eCommerce has increased the viability of small businesses like never before. With all of the prominent advantages that the internet has brought modern society, it has also brought with it a whole new set of challenges. 

One aspect of modern business that companies have to take seriously if they want to even stay in the game, is the modern data stack. Data itself is the byproduct of modern commerce and every interaction that takes place in the digital age creates some kind of data. While more and more modern commerce moves to a digital sphere, the importance of data aggregation, integration, and analysis will only increase.

When it comes to interacting and understanding data, the data stack is considered a bare-bones necessity. For businesses that want to be taken seriously and stand out from the crowd, investment in their data stack should be a legitimate area of interest. A more proficient and advanced data stack translates to a lot of benefits for companies in analytics which can lead to meaningful improvement.

Better data means a better view of the customer which can ultimately lead to better marketing, advertising, and customer experience, which leads to success and product-market fit. The most powerful decision that business leaders and department heads can possibly make will be data-driven decisions. However, without a competent data stack getting this data where it needs to be, leaders can be limited in the decision that they make. 

So what is the modern data stack and what advantages do you need to know about it? If you have been wondering about the advantages of the modern data stack, here is everything you need to know! 

The Big Difference – What Makes a Modern Data Stack, Modern

With data being one of the most important factors of the modern landscape, it’s no wonder that businesses are constantly faced with numerous SaaS companies offering the best solution to their data problems. When it comes to understanding exactly what a modern data stack really is, it can be tricky, as the term indicates a differentiation. 

In a world that is constantly evolving with new solutions and better systems, defining what is ‘modern’ can be a challenge. However, in general, there is one major difference that can at least serve as a starting point for when the ‘modern’ data stack started. That moment could fairly be described as the shift from onsite, legacy hardware to cloud-based services that made data analytics widely available to most businesses.

With on-premise options, there were significant limits to most companies when it came to data analytics. Redshift, Amazon’s dedicated web server, caused a definitive change in the landscape of the data stack. However, later in 2016 with the invention of Snowflake, things really started to turn toward what is now considered the modern data stack. 

Namely, Snowflake became the first ever SaaS data warehouse that emphasized data analytics. This means that not only could more businesses get the advantage of using cloud-based services, but higher level analytics and data integration. With this shift came the rise of tools like ELT, as viable options alongside the more traditional ETL. 

What Makes the Modern Data Stack Modern

While some clear demarcations can distinguish what the modern data stack is not – i.e., the modern data stack is not on-premise – the ever-evolving landscape of technology makes it hard to pinpoint what it is. Instead, it’s easier and more accurate to view the modern data stack as having certain qualities. 

The Modern Data Stack is Accessible

One overarching characteristic that the modern data stack will always have – is that it will continue to be more accessible. There’s no way around the complexities of data and the challenges that it represents. However, as the modern data stack develops, more and more tools will increase accessibility to various levels of knowledge and skill.

The Modern Data Stack is Fast

This is a trend that most of the tech world seems to follow. The more evolved a data stack becomes, the faster and smoother it will run.

The Modern Data Stack is Scalable

This is another important factor that makes the modern data stack truly ‘modern’. As better tools come out, companies will find it easier to scale their business. Scalability is something that modern businesses care a lot about, and the modern data stack will continue to support this factor.  


The modern data stack may be hard to define but it’s well worth investing in. As technology evolves so will the capabilities and benefits of the modern data stack. Businesses that take this aspect of their company seriously are setting themselves up for the success that they want to see.

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