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The Hidden Cost of Data Sprawl

Imagine Sarah, a manager at a growing Australian retail business. Every Monday morning, Sarah arrives at her office, eager to understand her business’s performance over the previous week.

But instead of diving straight into analysis, Sarah finds herself juggling between multiple systems such as Shopify for sales, Zendesk for customer service, inventory software for stock levels, and Google Analytics for website data.

Hours pass as she moves between different platforms, manually copying and reconciling conflicting figures.

By lunchtime, Sarah is frustrated, overwhelmed, and no closer to the clear insights she needs.

Sarah’s situation isn’t unique. Many businesses face this exact challenge with data spread out across too many different platforms.

This scattered approach makes it hard to see the whole picture, costing Australian businesses millions each year. But there’s a better way.

Let’s take a look at some of the telltale signs of data sprawl, along with how Microsoft is helping businesses solve these challenges.


Scattered Data: More Platforms, Less Insight

Data sprawl happens when businesses store their data in many different places. Customer details might be in one tool, sales figures in another, and inventory data somewhere else.

This makes it hard to put the pieces together and get clear answers.

The Real-world Impact of Fragmented Data

Remember that retailer from earlier? Sarah uses Shopify for online sales, another system for stock management, customer support data in Zendesk, and Google Analytics for website visits.

Without connecting these tools, Sarah and her team spend hours just trying to make sense of their data instead of using it to drive decisions.

In fact, employees often spend around 12 hours every week just searching for data across disconnected systems.

Another big issue is consistency. One customer might be recorded as “John Smith” in one system, “J. Smith” in another, and “Jonathan Smith” in a third.

This causes duplication and mistakes, which can lead to poor decisions. According to a recent survey, 91% of data professionals say that bad data quality hurts their business performance.


Unified Data Governance: Getting Everyone on the Same Page

When data sits in different places, businesses find it tough to manage it properly.

Data governance means having clear rules about how data is collected, stored, used, and protected.

But with data spread everywhere, maintaining good governance becomes nearly impossible.

Consistent Definitions and Trust

One common issue is that different teams often use different definitions for the same data.

For example, sales might see a “customer” differently than marketing. This leads to conflicting information and poor trust in the data.

Managing Compliance

Managing compliance is also challenging. Australian businesses have strict rules under the Privacy Act about protecting personal data.

When data is stored across different platforms, it’s hard to know exactly where sensitive information is or who has access to it. This lack of control increases the risk of compliance problems and penalties.


Compliance Challenges: Fragmented Data Means Higher Risk

Having data scattered across multiple systems creates major compliance problems. It makes tasks like responding to data requests or preparing for audits difficult because businesses struggle to even find the relevant data.

Privacy Risks

Privacy is especially hard to manage. If a customer asks for their data to be deleted, businesses must find every instance of that data across all their platforms. Fragmentation makes this process slow, expensive, and often incomplete.

Regulatory Reporting

Businesses in highly regulated areas, like finance, face even bigger issues. They must meet many regulatory requirements, each demanding different reports.

With data stored separately, creating these reports can become error-prone, increasing the chance of regulatory issues.

Security Concerns

Security is another area of concern. Each extra system is another point of potential weakness, needing constant security updates. Fragmentation means higher risk of breaches and greater potential for fines.


ROI Reality Check: Multiple Tools, Rising Costs

Managing many analytics tools is expensive. Small to medium businesses typically spend $10,000 to $100,000 each year just on analytics software. But the real cost goes far beyond license fees.

Hidden Costs and Complexity

Hidden costs include extra training, support, and integration between different tools.

Staff spend valuable time manually moving data around, creating reports, and dealing with conflicting information.

Research shows that 62% of data teams use over ten different tools, with nearly half describing their setup as too complicated.

Lost Productivity

This complexity significantly reduces productivity. Employees spend more time learning different systems, managing data connections, and fixing problems than analysing the data itself.

Maintenance also becomes expensive and time-consuming, with each tool needing updates, patches, and integrations.

Limited ROI

Perhaps worst of all, businesses struggle to see a real return on their analytics investments. With data spread out, businesses find it difficult to get clear insights that help them make better decisions.


How Microsoft Fabric Solves Data Sprawl

At CG TECH, we help businesses move from fragmented analytics to unified data solutions. Microsoft Fabric is a game-changing platform designed specifically to tackle the problems of data sprawl.

Centralised Data with OneLake

Fabric’s solution centres on OneLake, a unified data lake that stores all your data in one place. Teams no longer waste time moving data between tools, saving time, reducing complexity, and lowering costs.

Consistent Governance and Compliance

Microsoft Fabric provides a unified approach to data governance. Built-in governance tools powered by Microsoft Purview ensure consistent security, permissions, and compliance across all your data.

It automatically applies rules and security policies, making compliance straightforward.

Cost Reduction and Efficiency

Fabric also dramatically reduces analytics costs. Instead of using many different tools, businesses get everything they need in one platform: data engineering, data science, real-time analytics, data warehousing, and business intelligence.

This means fewer tools to manage, lower training costs, and fewer integration headaches.

Enhanced Productivity with AI

AI-powered features within Fabric boost productivity further. The built-in Copilot tools automate routine tasks and speed up model development, enabling everyone in your business to use advanced analytics without needing special skills.


Moving Forward: Choosing Unified Analytics

It’s clear scattered data platforms cost Australian businesses money, create compliance risks, and slow down decision-making. Continuing with disconnected tools leaves your business falling behind.

Microsoft Fabric solves these challenges by providing a single, integrated analytics platform that removes data silos, simplifies governance, streamlines compliance, reduces costs, and enhances productivity with powerful AI tools.

At CG TECH, we support your transition to Microsoft Fabric with practical guidance, deep Microsoft expertise, and hands-on implementation.

If your business is struggling with data sprawl, we’re ready to help. Let’s simplify your data and help your team focus on the insights and decisions that drive real value.

Click here to book a discovery session with a CG TECH consultant.