Unpacking the Debate: Composable vs Packaged Customer Data Platforms

In the domain of smartphones, a fascinating dichotomy has unfolded over time. On one side of the divide, we find ambitious and innovative modular smartphone brands like Phonebloks, Moto Z, Librem 5, and PinePhone. These brands put forth an intriguing proposition: a phone that you can customise and upgrade piece by piece, much like a playground for tech enthusiasts. On the other side, we find heavyweights like Apple and Samsung, offering enclosed, well-integrated ecosystems, crafted to deliver a seamless user experience.

But when we look at the market share, it's clear who the winners are - the Apples and the Samsungs of the world. This isn't because modular phones lack potential or innovation. Instead, it's due to the fact that the skillset needed to fully exploit such a customisable platform is niche. A majority of users prefer a product that 'just works', a product that demands minimal setup, maintenance, and technical know-how. This preference has allowed brands like Apple and Samsung to cater to a far broader audience.

This smartphone analogy perfectly encapsulates the ongoing discourse on Composable CDPs versus Packaged CDPs in the marketing technology landscape. Just as modular phones promise customisation and upgradability, Composable CDPs, represented by platforms like HighTouch and RudderStack, are an assemblage of integrated tools. These tools, assembled using open-source or proprietary software, can perform some or all functions of a Packaged CDP. Like their smartphone counterparts, they offer tremendous flexibility, but they also demand a specialised skillset and significant resources for their maintenance. Despite promises of 'no-code' solutions, these platforms often demand more coding and data warehousing work than initially anticipated.

On the other end of the spectrum, we have Packaged CDPs, such as Tealium and Segment. Much like the approach taken by Apple and Samsung, these platforms offer a complete, self-contained solution. They come equipped with capabilities to collect and store data from multiple sources, transform and unify the data, resolve identities, build audiences, and sync data to downstream destinations. While they may not offer the same level of customisation, they do provide a robust and seamless platform that is easier to manage, particularly for small and medium enterprises or organisations that lack extensive development teams.

That's not to say that Composable CDPs are without their merits. They serve a particular niche, and there will always be a demand for such solutions. However, like modular smartphones, the reality is often more complex than the 'no-code' promise that drives the hype around composable solutions. Even though these platforms often promise 'no-code' solutions, they frequently necessitate more coding and data warehouse work than initially anticipated, which can be challenging for organisations without the necessary resources.

Ultimately, it's important to recognise that both Composable and Packaged CDPs have their place in the market. However, just like in the smartphone industry, the market share will always lean heavily towards self-contained or 'packaged' ecosystems, like Tealium and Segment. These solutions cater to a broader user base, requiring fewer technical resources, thereby providing a more accessible solution for marketing data activation.

As such, before jumping on the 'composable hype train', it's crucial to assess your organisation's resources, skillset, and needs. The integrated, ready-to-use 'packaged' solution may indeed be the better choice, especially when 'no-code' solutions turn out to require more code than initially expected.