How to Find the Right CDP for Your Business?

Businesswoman Using CDP

You know what a CDP is, but do you know how to find the right one for your business? There are many different types of CDPs and it can be challenging to know which one is right for your business. There are four types of customer data platforms to consider. Let’s dive in!


Cloud-based CDPs are the most common, and for a good reason. They’re easy to use and require little maintenance, making them a perfect fit for small businesses. Unfortunately, cloud-based CDPs also aren’t as expensive as they used to be—in fact, many are free or have a low cost of entry.

On-prem or hybrid

A hybrid cloud is a mix of on-premises and cloud computing. It allows you to use both environments, but it can be more expensive than cloud-only.

Hybrid also comes with a cost in security, as the data is only partially secure when it’s stored on your servers. This can be a problem if you have sensitive data that needs to be protected by industry standards like PCI DSS/DSS or HIPAA regulations.


Independent CDPs are a good choice for companies that are looking to build their own data warehouse. They can be used to store customer data from multiple sources and often have flexible pricing models, including per-GB storage fees or bulk discounting.

  • Pro: Flexibility in choosing the size and shape of your data warehouse.
  • Con: It can be more expensive than other types at scale.


If you already use a specific ERP system and want to purchase a CDP, then integrated CDPs are probably what you’re looking for. An integrated CDP is designed to work seamlessly with the specific ERP system it’s sold with. 

This can be good or bad depending on your situation: It’s great if the CDP comes with your ERP software and helps streamline processes like purchasing or inventory management; however, if you’re planning on changing ERPs in the near future (or vice versa), then an integrated solution might not be ideal for your company.

Integrated CDPs also tend to be more expensive than other types of software solutions because they’re usually part of larger packages that include both the ERP system and its associated materials management software (aka “the CDP”).

At least one study has found that businesses using multiple systems tend to have more difficulty staying compliant due to this fact—so keep this in mind before jumping into an integrated solution!

These are the four types of CDPs and how they work

There are four major types of CDPs: cloud-based, on-prem or hybrid, independent and integrated. Each type has its own advantages and disadvantages. If you’re unsure what kind of CDP best suits your company’s needs, ask yourself these questions:

  • Is your business looking for an inexpensive solution?
  • Do you need to manage a large number of assets?
  • Will your team have access to the same information at all times?
  • Are there features that aren’t supported by some systems but that could make a difference for you (for example, 3D visualization)?

According to Adobe Real-Time CDP, “CDP technology pulls together data from TSB’s online and offline channels to get a holistic view of every consumer that updates in real-time.”

Hopefully, this article clarifies which type of CDP might be best for you or your company.

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