Sadegh Riazi is the cofounder and CEO of Pyte.
getty
As technologies continue to advance, organizations are managing increasingly complex tech stacks. According to a 2022 survey of IT and security professionals, organizations are now using an average of 130 SaaS apps, up from just eight in 2015.
In this environment of overlapping platforms and vendors, technical interoperability in data collaboration is more important than ever. The problem is that there is no standard definition of interoperability. It’s often perceived as binary: Either a tool is interoperable or it isn’t. But interoperability is actually a spectrum, and it’s important to recognize its nuances. The sophisticated tools we use today don’t fit into simple “yes” or “no” buckets.
Since there is not yet a clear definition of interoperability, my team and I are taking the first steps toward creating one. We want to open up the conversation and ask others in the industry to contribute to an evolving definition of the spectrum of interoperability.
Levels Of Interoperability
We propose a framework that recognizes three levels of interoperability:
• Level 1: Vendors can install their software in any cloud environment (for example, Microsoft Azure, Amazon Web Services or Google Cloud Platform).
• Level 2: Vendors can facilitate data in and out of their software in any cloud environment or SaaS provider, such as data clean rooms.
• Level 3: Vendors can facilitate distributed data processing in any cloud or data cloud environment, without moving plaintext data in or out.
I believe there is value in achieving each level of interoperability. Level 1 is now becoming table stakes since the market share for each of the cloud providers is leveling out. It is also what many organizations believe interoperability is. They need their software to support a wide range of clouds. Some software companies and data clean room providers are also moving toward Level 2, making sure they have data connectors in place that can process incoming and outgoing data from different environments. But we think Level 3 is the holy grail of interoperability that every company should strive for. In Level 3, data computation happens in a distributed fashion, guaranteeing both full control and no plaintext data movement. This means that if you are working with Company A in their cloud environment and Company B in a completely different environment, you can use a truly interoperable software that allows them to do data collaboration, without ever moving plaintext data into another environment and giving up control. Level 3 would also allow Company A to use Clean Room 1 and Company B to use Clean Room 2, with both companies still able to process data in a distributed way.
Businesses have two goals that are often contradictory: maximizing revenue and profit while also maintaining data confidentiality. It’s a tricky balance to manage; you want to provide more access to your data and monetize it, but you also feel pressure to protect and control your data for regulatory, legal and brand reputation reasons. I believe Level 3 allows you to have the best of both worlds.
Understanding And Achieving Interoperability
Interoperability in data collaboration is often oversimplified and misunderstood. Here are three steps you can take now to understand its nuances and move your business toward more seamless and secure collaboration.
Move Beyond The Binary
Recognize that interoperability isn't a “yes” or “no” binary. It operates on a spectrum with distinct levels, each offering different capabilities and benefits. Learning how to differentiate between these levels is the first step toward making informed decisions about your data collaboration tools.
Ask The Right Questions
When evaluating vendors, don’t simply accept their claims that they are interoperable. Ask questions about where they are on the interoperability spectrum. Do their capabilities put them at Level 1, Level 2 or Level 3? What does that mean in practical terms?
Choose Wisely
Evaluate whether a vendor's interoperability aligns with your business needs and objectives. If there is a mismatch, you risk encountering problems such as integration challenges, increased costs and reduced efficiency.
When you have a clear understanding of interoperability, you are empowered to make well-informed buying decisions. Many vendors fall short of fulfilling the big promises they make about integration and interoperability—and once you sign a contract, you are left to build the custom integrations that will allow your vendors to work together. You can save significant costs by reducing the number of vendors you require for data collaboration and the amount of custom integration work you need to do on your vendors’ behalf.
Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
