The 2025 Data Streaming & AI Report (Sponsored)
AI is only as powerful as the data behind it — but most teams aren’t ready. We surveyed 200 senior IT and data leaders to uncover how enterprises are really using streaming to power AI, and where the biggest gaps still exist. Discover the biggest challenges in real-time data infrastructure, the top obstacles slowing down AI adoption, and what high-performing teams are doing differently in 2025. Download the full report to see where your organisation stands. Disclaimer: The details in this post have been derived from the details shared online by the Zalando Engineering Team. All credit for the technical details goes to the Zalando Engineering Team. The links to the original articles and sources are present in the references section at the end of the post. We’ve attempted to analyze the details and provide our input about them. If you find any inaccuracies or omissions, please leave a comment, and we will do our best to fix them. Zalando is one of Europe’s largest fashion and lifestyle platforms, connecting thousands of brands, retailers, and physical stores under one digital ecosystem. As the company’s scale grew, so did the volume of commercial data it generated. This included information about product performance, sales patterns, pricing insights, and much more. This data was not just important for Zalando itself but also for its vast network of retail partners who relied on it to make critical business decisions. However, sharing this data efficiently with external partners became increasingly complex. Zalando’s Partner Tech division, responsible for data sharing and collaboration with partners, found itself managing a fragmented and inefficient process. Partners needed clear visibility into how their products were performing on the platform, but accessing that information was far from seamless. Data was scattered across multiple systems and shared through a patchwork of methods. Some partners received CSV files over SFTP, others pulled data via APIs, and many depended on self-service dashboards to manually export reports. Each method served a purpose, but together created a tangled system where consistency and reliability were hard to maintain. Many partners had to dedicate the equivalent of 1.5 full-time employees each month just to extract, clean, and consolidate the data they received. Instead of focusing on strategic analysis or market planning, skilled analysts spent valuable time performing repetitive manual work. There was also a serious accessibility issue. The existing interfaces were not designed for heavy or large-scale data downloads. Historical data was often unavailable when partners needed it most, such as during key planning or forecasting cycles. As a result, even well-resourced partners struggled to build an accurate picture of their own performance. This problem highlighted a critical gap in Zalando’s data strategy. Partners did not just want raw data or operational feeds. They wanted analytical-ready datasets that could be accessed programmatically and integrated directly into their internal analytics tools. In simple terms, they needed clean, governed, and easily retrievable data that fit naturally into their business workflows. To address this challenge, the Zalando Engineering Team began a multi-year journey to rebuild its partner data sharing framework from the ground up. The result of this effort was Zalando’s adoption of Delta Sharing, an open protocol for secure data sharing across organizations. In this article, we will look at how Zalando built such a system and the challenges they faced. Zalando’s Partner EcosystemTo solve the problem of fragmented data sharing, the Zalando Engineering Team first needed to understand who their partners were and how they worked with data.
Zalando operates through three major business models:
Each of these models generates unique datasets, and the scale of those datasets varies dramatically. A small retailer may only deal with a few hundred products and generate a few megabytes of data each week. In contrast, a global brand might handle tens of thousands of products and need access to hundreds of terabytes of historical sales data for planning and forecasting. In total, Zalando manages more than 200 datasets that support a business generating over €5 billion in gross merchandise value (GMV). These datasets are critical to helping partners analyze trends, adjust pricing strategies, manage inventory, and plan promotions. However, not all partners have the same level of technical sophistication or infrastructure to consume this data effectively. Zalando’s partners generally fall into three categories based on their data maturity. See the table below:
Large enterprise partners often have their own analytics teams, data engineers, and infrastructure. They expect secure, automated access to data that integrates directly into their internal systems. Medium-sized partners prefer flexible solutions that combine manual and automated options, such as regularly updated reports and dashboards. Smaller partners value simplicity above all else, often relying on spreadsheet-based workflows and direct downloads. Zalando’s existing mix of data-sharing methods (such as APIs, S3 buckets, email transfers, and SFTP connections) worked in isolation but could not scale to meet all these varied needs consistently. Solution Criteria and EvaluationAfter understanding the different needs of its partner ecosystem, the Zalando Engineering Team began to look for a better, long-term solution. The goal was not only to make data sharing faster but also to make it more reliable, scalable, and secure for every partner, from small retailers to global brands. The team realized that fixing the problem required more than improving existing systems. They needed to design an entirely new framework that could handle massive datasets, provide real-time access, and adapt to each partner’s technical capability without creating new complexity. To do that, Zalando created a clear list of evaluation criteria that would guide their decision.
Security was another non-negotiable factor. The platform had to support granular security and auditing features. This included data encryption, access control at the table or dataset level, and comprehensive logging for compliance and traceability. Since partners would be accessing sensitive commercial data, robust governance mechanisms were essential to maintain trust. The next requirement was flexibility in data access patterns. Partners used data in different ways, so the system had to support:
Finally, the solution had to be easy to integrate with the tools that partners were already using. Whether it was business intelligence dashboards, data warehouses, or analytics pipelines, the new system should fit naturally into existing workflows rather than force partners to rebuild them from scratch. The search for such a system eventually led them to Delta Sharing, an open protocol specifically designed for secure data sharing across organizations. This discovery would go on to transform the way Zalando and its partners collaborate on data. The Solution: Delta SharingAfter months of evaluation and research, the Zalando Engineering Team found a technology that met nearly all of their requirements: Delta Sharing.
Delta Sharing is an open protocol designed specifically for secure, zero-copy data sharing across organizations. This means that partners can access live data directly from its original location without creating separate copies or transferring large files across systems. The team immediately recognized how well this approach fit their goals. It offered the openness, scalability, and security they needed while being simple enough to integrate into partners’ existing tools and workflows. Key features of Delta Sharing are as follows:
While Delta Sharing is available as an open-source protocol, Zalando decided to implement the Databricks Managed Delta Sharing service instead of hosting its own version. This choice was made for several practical reasons:
By using the managed service, the Zalando Engineering Team could focus on delivering value to partners rather than spending time maintaining infrastructure. Simplified Architecture and ImplementationOnce the Zalando Engineering Team validated Delta Sharing as the right solution, the next challenge was designing a clean and efficient architecture that could be scaled across thousands of partners. Their approach was to keep the system simple, modular, and easy to manage while ensuring that security and governance remained central to every layer. At its core, the new data-sharing framework relied on three main building blocks that defined how data would be organized, accessed, and distributed:
This architecture followed a clear, three-step data flow designed to keep operations transparent and efficient:
This architecture brought several benefits. Partners now had real-time access to data, partner-specific credentials ensured granular security, and no redundant storage simplified maintenance. To implement this system in Databricks, Zalando followed a clear operational workflow:
See the diagram below:
Every step was guided by Databricks’ Delta Sharing API documentation, allowing the team to automate processes where possible and maintain strong governance controls. Enabling Adoption and Expanding the PlatformOnce the new data-sharing architecture was in place, the Zalando Engineering Team understood that technology alone would not guarantee success. For the system to work, partners needed to be able to use it confidently and easily. Usability became just as important as performance or scalability. To make the onboarding process smooth, Zalando created a range of partner-facing resources. These included step-by-step user guides that explained how to connect to Delta Sharing using tools familiar to most data teams, such as Pandas, Apache Spark, and common business intelligence (BI) platforms. Each guide walked partners through the entire process—from receiving their activation link to successfully accessing and querying their first dataset. The team also built detailed troubleshooting documentation. This helped partners solve common issues such as expired credentials, connection errors, or authentication problems without needing to contact support. By empowering partners to self-diagnose and fix minor issues, Zalando reduced delays and improved overall efficiency. In addition, they developed prebuilt connector snippets—small code templates that partners could plug directly into their existing data pipelines. These snippets made it possible to integrate Zalando’s data into existing workflows within minutes, regardless of whether a partner used Python scripts, Spark jobs, or visualization tools. Together, these efforts dramatically reduced onboarding friction. Instead of days of setup and testing, partners could access and analyze data in a matter of minutes. This ease of use quickly became one of the platform’s strongest selling points. The success of the Partner Tech pilot did not go unnoticed within Zalando. Other teams soon realized that they faced similar challenges when sharing data with internal or external stakeholders. Rather than allowing every department to build its own version of the solution, Zalando decided to expand the Delta Sharing setup into a company-wide platform for secure and scalable data distribution. This new platform came with several key capabilities:
Looking ahead, Zalando plans to introduce OIDC Federation, a feature that allows partners to authenticate using their own identity systems. This will remove the need for token-based authentication and make access even more secure and seamless. ConclusionZalando’s journey to modernize partner data sharing was both a technical and organizational transformation. By focusing on real partner challenges, the Zalando Engineering Team built a system that balanced openness, governance, and usability—creating long-term value for both the company and its ecosystem. The key lessons were as follows:
Delta Sharing has fundamentally changed how Zalando exchanges data with its partners. The company moved from fragmented exports to a unified, real-time, and governed data-sharing model. This shift has produced the following impact:
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How Zalando Delivers Real-Time Insights to Its Partners Brands
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