Similarly, in the digital era, data connectors serve as the hidden highways that power the flow of information. You might assume that with thousands of technology companies in the digital economy, app-to-app and data pipeline integrations would be highly distributed. However, the reality is quite different. Just three companies dominate this space, supplying the low-level integrations that underpin much of the seamless communication between systems. And the interesting part is that you’ve probably never heard of the companies that supply this critical infrastructure: Cdata, Progress, and Simba (now Insight Software).
Although their role is somewhat invisible, you likely interact with data connectors every day. Every time you make an online transaction, book a rideshare, or check a dashboard for business insights, you’re benefiting from data connectors. Booking a rideshare involves connecting multiple systems (e.g., your app communicates with driver availability, pricing algorithms, and payment systems in real-time). Connectors do the heavy lifting behind the scenes, translating technical complexity into seamless, user-friendly experiences.
What Makes Connectors Essential?
- On-demand data processing – this is crucial for real-time analytics and AI model training.
- Advanced querying – this supports complex SQL operations like joins and calculations.
- Universal compatibility – bridges relational databases like PostgreSQL with SaaS tools like Salesforce via standardized SQL interfaces.
Developing connectors is no simple task. Like semiconductors power generative AI, connectors are the building blocks of data integration. They demand expertise in programming, SQL optimization and performance tuning; continuous updates to adapt to evolving APIs, security protocols, and system upgrades; and high reliability to support mission-critical enterprise workflows.
Why Are There So Few Players in the Market?
Despite their critical role, only a handful of companies dominate the connector market. Developing and maintaining connectors is far more complex than it appears. Applications evolve rapidly, requiring connectors to adapt to new APIs, features, and security protocols. This constant need for updates makes maintaining robust connectors exponentially harder as the number of integrations grows. Additionally, the economics of building and maintaining connectors only work at scale. Supporting a wide range of integrations across diverse systems becomes cost-effective only for companies operating at a large scale. These challenges have naturally consolidated the market to just three dominant players: Cdata, Progress, and Simba (now Insight Software).
How These Companies Drive Innovation
Efficiency Through Modularity
One way is through building connectors using a modular, factory-like approach. This method enables the creation of new connectors with much faster timelines and lower costs. This results in the broadest portfolio of any connector on the market with a scalable design that ensures consistency in performance through a wide diversity of use cases from small businesses to large enterprises.
Pioneering Cloud-Native Solutions
Another area of innovation is the alignment of these offerings with modern, cloud-native architectures. Solutions focus on businesses in search of real-time analytics, data virtualization, and semantic modeling to build well-structured data. By providing a fully managed, SaaS-based approach, it becomes easy to integrate data without deep technical investment.
Bridging Legacy and Modern Systems
These companies also excel at enabling seamless integration between legacy systems and cutting-edge applications. This approach focuses on reliability, enabling businesses to update their operations with the confidence that their existing tech stacks can still function precisely as intended.
The Future of Data Connectivity
As the digital landscape evolves, connectors will remain foundational, but their role is poised to change alongside emerging technologies. Data streaming platforms, for instance, are reshaping how real-time data flows are managed. These platforms could reduce reliance on traditional connectors in specific scenarios, yet connectors will remain indispensable for integrating streams with broader enterprise systems, ensuring cohesive workflows and actionable insights.
Another frontier is the growing prevalence of unstructured data, generated from IoT devices, social media, and application logs. Unlike structured data, these sources present unique challenges, requiring connectors to evolve and accommodate increasingly complex data formats. By addressing these challenges, connectors will not only maintain their relevance but also enable businesses to unlock new opportunities in analytics and decision-making.
Looking forward, the companies dominating the connector space must innovate beyond their current offerings. This involves integrating capabilities like real-time processing and advanced AI-driven insights directly into their platforms, ensuring they continue to meet the demands of a rapidly changing ecosystem.
The Hidden Backbone of Innovation
Connectors may be the backbone of data integration, but these three companies behind them are the true drivers of innovation. Their ability to adapt, collaborate, and address evolving challenges ensures they remain relevant in the fast-changing digital economy. These companies have turned what could be a commoditized niche into a highly specialized and indispensable part of the tech ecosystem. By solving foundational challenges in data integration, they have not only enabled smoother workflows but also created opportunities for advancements in AI, automation, and analytics. From modular design to real-time streaming, these companies demonstrate that solving foundational problems is not just about meeting today’s demands, it’s about shaping the infrastructure of tomorrow. Get in touch with our experts at Cuesta Partners to learn more.
