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The Modern Data Stack: A Scalable Future with Distributed Computing

(4:03) Navigating the Challenges of the Modern Data Stack

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Sean M. Tracey
Mar 20, 2025
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The Modern Data Stack: A Scalable Future with Distributed Computing
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Data is being generated at an incredible, growing volume, with projections estimating 394 zettabytes of global data generation by 2028. Companies across industries - whether in finance, cloud technology, energy, or healthcare - depend on modern data platforms to process, analyze, and extract insights from this ever-growing volume of information. However, as that volume surges, traditional modern data stack tools are increasingly strained, facing challenges in scalability, efficiency, and cost management.

This is where modern solutions like distributed computing and Compute Over Data (CoD) can change the game. By shifting computation closer to the data source, these approaches eliminate inefficiencies inherent in traditional pipelines. Bacalhau exemplifies this shift, providing a powerful tool that brings computation to where the data is—whether on edge devices, in the cloud, or on-premises—optimizing performance, reducing latency, and ensuring cost-efficient data processing.

What is the Modern Data Stack?

The modern data stack refers to the tools and technologies used for collecting, storing, processing, and analyzing data at scale. A robust modern data platform consists of the following layers:

  • Data Sources – Applications, IoT devices, log generators, and business systems generating data.

  • ETL/ELT Pipelines – Transformation tools that structure and clean raw data before storage.

  • Storage Solutions – Cloud data warehouses, data lakes, and databases that store structured and unstructured data.

  • Transformation & Analytics – Modern data tools for processing data into meaningful insights.

  • Visualization & Business Intelligence – Business intelligence tools that turn data into actionable insights.

The Shortcomings of the Traditional Data Stack

Despite its success, the traditional data stack presents major challenges:

  • Fragmentation – Stitching together multiple modern tools increases complexity, often requiring businesses to invest heavily in system integration.

  • High Costs – Cloud storage and query processing costs escalate as data volumes grow.

  • Latency & Bottlenecks – Real-time analytics and parallel processing are hindered by centralized architectures.

  • Siloed Data – Legacy stacks prevent seamless data access across departments.

  • Security Concerns – Centralized cloud-based tools create security vulnerabilities.

How Bacalhau Reinvents the Modern Data Stack

While many popular solutions rely on moving data through costly and time-consuming pipelines, Bacalhau solves these challenges by enabling Compute Over Data processing workloads directly where the data is located.

Key Benefits of Bacalhau

1. Faster, More Efficient Data Processing

Bacalhau eliminates latency by executing workloads at the data source, enabling near real-time insights.

2. Reduced Infrastructure and Cloud Costs

Bacalhau leverages existing compute resources instead of requiring expensive centralized cloud services, drastically reducing operational costs.

3. Enhanced Security & Compliance

By processing data in place, Bacalhau minimizes exposure to cyber threats and ensures compliance with regulations like GDPR and HIPAA.

4. Seamless Integration Across Environments

Bacalhau works effortlessly across cloud data warehouses, on-premises solutions, and edge computing environments.

Transforming Business Intelligence with Compute Over Data

Business intelligence tools traditionally rely on pre-aggregated datasets and scheduled reports. With Bacalhau, organizations can unlock new capabilities by running compute directly where data resides, enabling:

  • The generation of real-time insights by supporting real-time analytics.

  • More informed decision-making through efficient processing for predictive analytics.

  • AI-powered insights by accelerating access to distributed data.

  • Improved data visualization by facilitating seamless integration with leading visualization tools.

Edge Computing: Bringing Processing Closer to the Data

Traditional cloud-based data warehouses process data centrally, leading to considerable time delays and increased costs. Edge computing with Bacalhau addresses these issues by processing data at the source.

Key Advantages of Edge Computing with Bacalhau

  • Minimized latency – Instant insights by reducing data transfer.

  • Lower bandwidth costs – Process only relevant data before sending it to the cloud.

  • Enhanced security – Sensitive data stays closer to its origin.

  • Faster decision-making – Supports AI-driven self-service analytics tools.

Why Bacalhau is the Future of the Modern Data Stack

The modern data stack must evolve beyond cloud-based tools to meet the growing needs of business intelligence, AI, and real-time analytics. Bacalhau offers a scalable, cost-efficient, and flexible alternative to legacy systems.

By integrating Bacalhau, you gain:

  • A unified platform for managing workloads across cloud, edge, and on-premises environments.

  • Instant access to real-time insights through efficient data processing.

  • Lower IT costs with reduced cloud dependency.

  • Optimized security & compliance for business users in finance, healthcare, and energy industries.

Get Started with Bacalhau Today

Ready to revolutionize your IT infrastructure? Download Bacalhau now or contact our team to explore how we can help optimize your modern data platform.

Get Involved!

Expanso’s tools and templates make it easy to get started. Check out our public GitHub repository for examples and guides, and join the conversation on social media with #ExpansoInAction.

Have a unique use case? We’d love to hear about it! Share your projects and ideas, and let’s build the future of distributed systems together.

There are many ways to contribute and get in touch, and we’d love to hear from you! Please reach out to us at any of the following locations.

  • Website Expanso

  • Website Bacalhau

  • Bluesky Bacalhau

  • Twitter Bacalhau

  • Twitter Expanso

  • Slack

  • LinkedIn

  • Careers Page

Commercial Support

While Bacalhau is open-source software, the Bacalhau binaries go through the security, verification, and signing build process lovingly crafted by Expanso. You can read more about the difference between open-source Bacalhau and commercially supported Bacalhau in our FAQ. If you would like to use our pre-built binaries and receive commercial support, please contact us!

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Tutorial: Building a Distributed Data Warehousing Without a Data Lake
A step-by-step guide (9 min)
Nov 2, 2023 • 
Ross Jones
 and 
Michael Hoepler
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Tutorial: Building a Distributed Data Warehousing Without a Data Lake
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U.S. Navy Chooses Bacalhau to Manage Predictive Maintenance Workloads
Bacalhau deployment example (4 min)
Nov 29, 2023 • 
Michael Hoepler
 and 
David Aronchick
6

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U.S. Navy Chooses Bacalhau to Manage Predictive Maintenance Workloads
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Bacalhau 1.0: Unlocking The Potential of Private Data
New simple job and data moderation features in Bacalhau 1.0 unlock new data sharing, federated learning and compute islands using private data.
Jun 20, 2023 • 
Simon Worthington
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Bacalhau 1.0: Unlocking The Potential of Private Data
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