Connected applications are SaaS apps that process data within the customer’s own Snowflake environment, giving customers control and eliminating data silos. Unlike managed apps, connected apps simplify compliance, improve performance, and allow customers to apply their governance policies and custom analytics across all data. SaaS providers benefit through lower costs, improved margins, and tighter alignment with Snowflake’s go-to-market strategy. While connected apps offer flexibility and reduce vendor lock-in, managed apps remain better for consumer markets, multi-tenancy, and fully managed services. Many providers adopt both models to meet diverse needs.

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