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🐰 #28 HelloFresh Data Mesh, Meltano, GitLabs COSS Business Model; ThDPTh #28 🐰

Three Data Point Thursday
🐰 #28 HelloFresh Data Mesh, Meltano, GitLabs COSS Business Model; ThDPTh #28 🐰
By Sven Balnojan  • Issue #28 • View online
Follow HelloFresh along their data mesh journey, see Meltano get spun out, and understand how to properly price COSS products with GitLab’s CEO Sid.

Good data strategies derive from company strategy, bad data strategies go wiggle-diggle.
Good data strategies derive from company strategy, bad data strategies go wiggle-diggle.
Data will power every piece of our existence in the near future. I collect “Data Points” to help understand & shape this future.
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🔮 (1) Data Mesh at HelloFresh
The German startup HelloFresh is in a transition towards a data mesh architecture, coming from a very centralized analytics-heavy perspective. While they are still very much in transition, I like a couple of things about their approach and would like to highlight them.
First of all, HelloFresh identified its flywheel and its data as a strategic asset. That’s very much in line with my thinking, see e.g. my post on Good Data vs. Bad Data.
“Good Data, derives the data strategy from the company strategy, feeding into the datacisions cycle. Bad Data has lots of “initiatives” flying around the company, without a coherent data strategy.”
They have a clear vision of getting all data, operational and analytical, into one “bucket”, one domain, while they want to keep conformity by normalizing dimensions across different domains.
Above all, I really like what they started with, the basics, that is data ownership and data literacy. They realized, without ownership & knowledge there is no way forward into a data-focused company architecture.
Anyway, I enjoyed the talk so check it out if you’re also in transition or just want to get a feeling of what kind of journey you’re embarking on because I guess you can tell from this short summary — it’s a long and painful one, but well worth the effort.
Data Mesh at HelloFresh - A Work in Progress; Data Mesh Learning Meetup #003
🚀 (2) Meltano spun out!
In my article on the open-source data space, I said
“Strictly speaking as a company, GitLab has little incentive to develop the meltano project further. […] but once they solve for their own little “snowflake” the incentives drop. So what then? Of course they could choose to monetize it, or they can let the project go truly open source. […] Once GitLab abandons meltano for business reasons, there will be a big drop in both shaping the project and actual contribution.”
Apparently, I don’t have to worry about that anymore. GitLab was already preparing for its next big step! They spun out, created a separate company with all the incentives to push their project further and further. Coming out of GitLab will very likely be very beneficial to them, as GitLab has a very open open-core model. And that’s exactly what is needed to advance in this space. So we will see a true battle happening here between Airbyte and Meltano (for now).
All of this can only be good for the data integration space, which, 2–3 years ago had no actively developed open-source solution and now has at least two.
🔮🔮🔮 Data Company Corner 🔮🔮🔮
Stuff that might be interesting for anyone at the front line of the data world, inside a data company, inspired by much positive feedback from my article on commercial open source software data companies.
(3) Sid Sijbrandji on COSS Business Models
Sid Sijbrandji, CEO of GitLab, did a very interesting talk on different COSS models and explained how they iterated over nine different ones, to finally land on the “open-core” model.
GitLab is most proud of keeping the community while growing and I think that is the essential challenge of open-core models. In fact, I think it’s what enabled GitLab to go from 0 to 35% market share in a winner takes most market.
Sid will walk you through the biggest challenge for COSS, which he sees as the “service wrapping OS hyper clouds”, and specifically how GitLabs pricing & product development model fights that challenge.
Finally, the last minute about the secret of GitLab’s development speed is a gold nugget! Basically, I’d paraphrase it as “ship something crappy fast”, something data companies are particularly bad at in my opinion.
5 Ways to resist the threat of service-wrapping with buyer-based open core | GitLab
🎄 In Other News & Thanks
Thanks for reading this far! I’d also love it if you shared this newsletter with people whom you think might be interested in it.
P.S.: I share things that matter, not the most recent ones. I share books, research papers, and tools. I try to provide a simple way of understanding all these things. I tend to be opinionated. You can always hit the unsubscribe button!
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Sven Balnojan

Data; Business Intelligence; Machine Learning, Artificial Intelligence; Everything about what powers our future.

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