Fivetran + dbt Rumors, Modern Data Stack Consolidation, and More

The Weekend Windup #4 - Cool Reads, Events, and More

Oct 04, 2025

Matt Housley and I sat down for another Friday chat, and the timing couldn’t be better. Lots of rumors, mergers, AI hype, and macro pressures are all colliding in the data world. Below are the 5 biggest takeaways to set the stage before you watch the full video (if you dare).

1. Rumors of a Fivetran–dbt Merger

Industry chatter is swirling about a potential deal, started by The Information last weekend. Whether for financial relief, platform synergies, or blocking competitors, consolidation seems inevitable in today’s environment with them and other Modern Data Stack companies.

2. The Modern Data Stack Isn’t So Modern

Fivetran and dbt are nearly a decade old in “startup years.” We argue that today’s data tooling founders should now worry less about incumbents like Snowflake, and more about nimble AI-native startups that could redefine whole categories overnight.

3. AI Eating the Vendor Floor

At Big Data London, I noticed that almost every booth was showing off an MCP-style chat interface. With LLMs writing more and more code, integrating, and generating insights, the big question is how many of these vendors are truly necessary over the next few years? In their current form, I’m skeptical. My hunch is we’ll see a mass extinction event in the data tooling and BI space, where vendors either evolve to become AI-native or are replaced by far leaner offerings.

4. Debt-Fueled AI Expansion

Tech giants are borrowing tens of billions (Oracle, Meta) to build AI data centers. That debt is trickling down to average people. In towns near data centers, electricity costs in some regions have spiked nearly 300% .

5. Databases & Standards in Flux

Postgres keeps eating the world, DuckDB is thriving, Iceberg is melting the data lakehouse, and standards like Parquet are showing their age. A new generation of file formats and hybrid, AI-native engines may be on the horizon.

Off to Europe today. If you’re in Montenegro or Vienna, happy to meet up. See further in this newsletter for details.

Also, you might be wondering about “The Book”, or the thing I’ve been working on for ages. The manuscript is nearly done for Book 1 (focused on the Fundamentals of Data Modeling) targeted for publication in late January 2026. Will keep you posted when pre-orders are available.

For now, have a fun weekend,

Joe

Awesome Upcoming Events

Montenegro! See you soon

INFINTECH is a regional event that connects decision makers from banks, fintechs, regulators, IT companies and other connected industries from the Balkan region and beyond.

DSC DACH 25 will take place at the Savoyen Vienna Hotel from October 14th to 16th in Vienna, Austria!

For anyone passionate about data science and artificial intelligence, this conference is an amazing opportunity to experience more than 80 hours of top-tier content and gain insights from over 100 of the industry's brightest minds.

DSC DACH will feature a wide range of 30+ topics, including Generative AI, NLP & LLM, Data Platforms, AI Agents, Responsible AI, and many more!

With over 500 attendees, this event offers an unmatched opportunity to learn, connect, and collaborate on innovative solutions for a brighter, more sustainable future!

But wait, there’s more!

a man is standing in front of a shelf full of oxi clean

My other upcoming events are posted here.

Cool Reads

Here are some things I read this week that you might enjoy.

Is AI an Excuse? Why Salesforce’s Layoffs Tell a Bigger Picture

I’m always skeptical when companies say “AI” is the reason for layoffs. First of all, as far as I can tell, AI and agents are nowhere near mature enough to take over large swaths of departments and companies. Note, this isn’t meant to pick on Salesforce in particular. I’m seeing other (mostly big tech) companies making similar claims right now. While AI will undoubtedly create efficiencies and change roles over time, the current narrative that it is mature enough to justify such large-scale layoffs warrants scrutiny.

A new article from Salesforce Ben argues that Salesforce has been using AI as a potential excuse for recent layoffs. While the company and its CEO, Marc Benioff, have pointed to AI as a reason for a significant reduction in their support staff, the article notes the numbers don’t fully add up. The company claims to have “redeployed” some employees, but many positions remain unaccounted for, leading to speculation that AI is a convenient scapegoat for broader financial pressures.

The article suggests that the high costs of AI infrastructure and the need to show profitability to investors may be the real drivers behind the layoffs. Again, this trend is not unique to Salesforce, as other major tech companies have also cited AI as a reason for workforce reductions. Lots of money has been plowed into AI, especially infrastructure, and companies need to maintain growth at all costs. If that means layoffs, so be it. This piece encourages a critical look at corporate narratives surrounding AI and layoffs, suggesting that the technology is often used to mask more complex financial realities and to present a forward-looking image to the public and to investors.

Read the article

Find My Other Content Here

📺 YouTube - Interviews, tutorials, product reviews, rants, and more.

🎙️ Podcasts - Listen on Spotify or wherever you get your podcasts

📝 Practical Data Modeling - This is where I’m writing my upcoming book, Mixed Model Arts, mostly in public. Free and paid content.

The Practical Data Community

The Practical Data Community is place for candid, vendor-free conversations about all things tech, data, and AI. We have regular events such as book clubs, lunch and learns, Data Therapy, and much more.

🤖 Join on Discord

Closing Question

How do you see the data tooling landscape evolving? Drop a note in the comments.

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Joe Reis

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