Inside the Black Box: 4 Advantages of Private Deployment

In this issue of Inside the Black Box we will dive into the benefits and advantages of deploying a customer data platform privately. We get that the deployment method is not the most glamorous factor you’re considering while choosing a CDP, but it is, in some ways, the most fundamental.

We hope this article will prepare you to have more informed conversations with your potential vendors. And you’ll learn a few selling points you can bring to your IT security admins to get their buy-in for CDP adoption.

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What does it mean to deploy privately? When we say “private,” what we mean is that your CDP is deployed single-tenant, in an Amazon Web Services (AWS) server owned and controlled by you, as opposed to a SaaS server controlled by Velocidi. (Find out more at What makes the Velocidi CDP “Private?” )

We chose this deployment model purposefully because of the following advantages it provides for our clients:

1. All data collected by the CDP is stored locally on your private server

If you’re using a first-party tag to collect data but letting a SaaS provider store it for you in an outside cloud server, it kind of defeats the purpose, doesn’t it? First-party data is, by definition, owned by the brand collecting it. But if the storage and management of first-party data takes place outside your premises, your "ownership" of that data is superficial.

We strongly believe that brands need to own their data in order to be competitive. If you don’t have your own first-party data in this new age of data privacy, then you’re facing a near future in which you have no audience for your marketing. We make sure you have exclusive ownership and control over the data you collect.

That means you also maintain control over your compliance with regulations. For instance, you can choose the geographic location where your data is stored. Ultimately, Velocidi gives you the power to provide unquestionable assurances to your customers that you are doing everything you can to respect their rights when it comes to their personal information. Speaking of which...

2. You remain in control of security measures

When you set up a CDP in a SaaS environment, you are at the mercy of the vendor’s security procedures. If they suffer a breach and your customers’ data is exposed to unauthorized parties, there’s literally nothing you can do about it. But you’re still on the hook to notify your customers and take responsibility for the situation, and it will damage your customers’ trust. Most CDPs have security measures in place to keep your customer data safe. However, from your customers’ perspective, you’re still placing their data in the hands of a third-party that they don’t know or understand.

Deploying your CDP privately means you can place it behind your own firewall and maintain complete control over how it’s protected. This way, when your customers provide you with their information, they know that you can be trusted to protect it.

3. You have full transparency around operational costs

The traditional SaaS business model can provide a great cost advantage to vendors, allowing them to run multiple client instances on the same server to save on operational costs. But that doesn’t necessarily translate to any savings for you.

Deploying on your private server means you have complete transparency around what it costs to deploy a CDP, and you own the server contract directly rather than relying on a vendor. If you have a server ready to go, you are already saving money. If you need to set up a new AWS account to deploy the Velocidi CDP, we guide you through a very simple setup plan that ends with you owning a private AWS server in less than 48 hours. In the end, you have a server free from typical markup costs that houses all of the first party data, collected by the Velocidi CDP, which you own and control.

4. You gain a native foundation for advanced analytics and AI-powered predictive modeling

The term “AI” is suffering a lot of unsubstantiated hype and confusion right now. However, one thing that industry experts agree on is that no AI will be practical or useful without a high-quality data foundation. That foundation is our guarantee with the private CDP.

The Velocidi CDP currently provides AI-powered predictive modeling tools for specific use cases (more on this in the next issue), which are available to all our clients. The cost-saving and CX-optimizing benefits they provide are only made possible because of the robust foundation of owned data you accumulate with our CDP. Maintaining a high-quality data foundation of your own first-party data prepares you to draw practical value from AI now and in the future, completely independent from third-parties. 

In a nutshell, what we are aiming to give you is a platform that delivers the same value as a it would if you built it natively, with a veteran team of engineers helping to keep it running smoothly. In most cases the only companies with the resources to build a completely native CDP in-house would have an army of IT engineers and analysts at their disposal. So we make sure you have access to the same level of service, for routine maintenance and ongoing updates, as well as technical support when you need it.

Schedule a call with us today to explore how we can help you gain full control of your data.

Read more Inside the Black Box: 

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