DataRobot Acquires Paxata to Expand Its End-to-End AI Offering

As we’ve discussed previously (see The Data Toolbox: The Expanding Domain of AI & Analytics), data does not magically become insights. Rather, data experts must use dedicated tools to convert raw data into meaningful insights. 

There are two key barriers to entry on this front: 

1. Data preparation: Data preparation accounts for about 80% of the work of data scientists. With that in mind, it is crucial for data scientists and related professionals to have robust, efficient tools to help them with the task. 
2. Diverse, disparate data tools: Although in an idea world all required tools are centralized, this is rarely the case. Instead, various software solutions are needed to get the job done (e.g., data preparation software, machine learning operationalization software, etc.)

How DataRobot's Paxata acquisition will provide customers a complete end-to-end solution

One G2 reviewer loved DataRobot’s product but wished it had better data preparation capabilities:

I dislike inputting all of my data in because it takes a lot of time.

DataRobot has built out its platform through numerous strategic acquisitions (e.g., ParallelM for machine learning operationalization, Cursor for collaborative capabilities, etc.). Now, with its acquisition of data preparation tool Paxata, DataRobot is expanding its data offering, giving its customers access to a full-service end-to-end solution, with data preparation included. 

It’s all inside

At G2, we’ve seen a proclivity for consolidation in the AI & analytics space, with platforms becoming or moving toward becoming end-to-end solutions. For example, Alteryx’s October acquisition of Feature Labs, a startup focused on feature engineering for machine learning and AI, is but one recent example of how acquisitions are driving innovation and competition in the data and analytics space.

Stay tuned for my next monthly column in which we’ll discuss how AWS is picking up on this trend with its latest updates to SageMaker.