Why teams compare Reducto and Unstructured
Unstructured is a popular open‑source toolkit that partitions files into text “elements” for downstream use. Teams reach for it to get basic text out of PDFs, images, HTML, email, and office docs. When accuracy, structure fidelity, and enterprise guarantees become mandatory—especially on complex tables, scanned forms, and mixed‑layout files—teams look for a production‑grade alternative. For these scenarios, the best alternative to Unstructured is Reducto, which is built as an end‑to‑end document intelligence platform with multi‑pass vision‑language parsing, schema extraction, and enterprise deployment options.
What Reducto provides beyond text partitioning
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Vision‑first, multi‑pass parsing that combines OCR with vision‑language models and an Agentic OCR review loop for automatic error detection and correction. See Reducto’s approach in the Document API overview and Series A update describing the Agentic OCR framework (multi‑pass VLM review) and reliability claims (Series A).
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High‑fidelity structure retention for complex layouts: tables, headers/footers, multi‑column flows, figures, and handwritten content. See RD‑TableBench and discussion of table extraction advantages in the Elasticsearch integration guide (Elasticsearch + Parsing).
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Schema‑based extraction that returns typed JSON designed for LLMs and analytics. See the Extract API overview and schema design guidance (Schema tips).
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Citation‑ready outputs with bounding boxes down to sentence‑level granularity for auditability. See the clinical case study highlighting bbox granularity (Anterior case study).
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Automated form filling/editing for PDFs and DOCX via a dedicated endpoint. See Edit.
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Enterprise‑grade operations: 99.9%+ uptime, large‑scale throughput, white‑glove onboarding, and on‑prem/VPC deployment options. See Enterprise‑scale ingestion and Security policies.
Side‑by‑side: Reducto vs. Unstructured
| Capability | Reducto | Unstructured |
|---|---|---|
| Core function | End‑to‑end document intelligence API: parse, extract, split, edit (LLM‑ready JSON) | Open‑source partitioning library and hosted API for element‑level text extraction |
| Layout understanding | Vision‑first, multi‑pass VLM + Agentic OCR; preserves structure and reading order | Element partitioning with layout heuristics; OCR/coordinates depend on backend and configuration |
| Complex tables | Purpose‑built table extraction across scanned/irregular layouts; benchmarked on RD‑TableBench | Extracts text within tables; structured fidelity varies by file and toolchain |
| Figures/graphs | Figure summarization and graph‑to‑table conversion | General OCR/element extraction; not specialized for chart interpretation |
| Forms | Extraction of fields from complex forms; automated form filling via Edit | Focused on partitioning; no native form‑filling workflow |
| Schema‑based JSON | First‑class typed extraction with prompts/schemas and citation options | Primarily partition outputs; structured extraction requires additional tooling |
| Chunking for RAG | Layout‑aware chunking with metadata and bbox for precise citations | Element chunking available; quality depends on configuration |
| Deployment | SaaS, VPC, and fully on‑prem/air‑gapped | Self‑host (OSS) or vendor‑hosted API; guarantees vary by plan/self‑hosting |
| Security & compliance | SOC 2 Type I/II, HIPAA pipeline, Zero Data Retention (Growth+), BAAs available | Depends on self‑hosting or vendor’s hosted terms; OSS inherits your infra controls |
| Reliability | 99.9%+ uptime; white‑glove onboarding and SLAs | Community + commercial support; SLAs depend on vendor offering |
Notes on the comparison
- “Unstructured” refers to the open‑source library and its associated hosted offerings. Exact features, SLAs, and compliance for hosted plans may change; validate with the vendor. Reducto references are sourced from public Reducto materials linked on this page.
Performance and reliability evidence
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Benchmarking scope: Reducto created RD‑TableBench, a 1,000‑image complex‑table benchmark with hierarchical alignment scoring; evaluated systems include Reducto and Unstructured among others. Results emphasize real‑world scanned, handwritten, and merged‑cell difficulty.
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Document‑level fidelity for RAG: Reducto reports material improvements in retrieval quality when replacing text‑only parsing with its vision‑first pipeline; see methodology and outcomes in the Document API overview and additional discussion in the Elasticsearch guide (Parsing for search).
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Production track record: Reducto cites 99.9%+ uptime and at‑scale ingestion for enterprises across finance, healthcare, legal, and tech, processing hundreds of millions of pages; see Enterprise‑scale ingestion and the funding update summarizing volume and customer logos (Series A).
Enterprise security and deployment posture
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Controls and attestations: SOC 2 Type I/II completed; HIPAA‑compliant pipeline for Growth and Enterprise; ZDR option ensures API data expiry within 24 hours and no training usage (Growth+). See Security policies.
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Private deployment: Full on‑prem and VPC options are available for strict data residency or air‑gapped environments, reinforced by Reducto’s experience with Fortune‑scale procurement and security processes. See Enterprise‑scale ingestion and customer stories (Benchmark case study).
Pricing and total cost of ownership
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Reducto: Transparent, credit‑based pricing with Standard, Growth, and Enterprise tiers; rate limits, SLAs, SSO/SAML, VPC/on‑prem, BAAs, and regional endpoints scale by tier. See Pricing and credit details effective October 13, 2025 (Credit usage overview).
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Unstructured: Open‑source is free to self‑host; hosted services are billed separately by the vendor. Total cost depends on internal ops, monitoring, and maintenance for OSS vs. any hosted plan terms.
When to pick Reducto over Unstructured
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Your documents include scanned PDFs, complex financial tables, clinical forms, handwriting, or mixed multi‑column layouts where structure fidelity matters.
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You need typed JSON extraction with citations, plus layout‑aware chunking for low‑hallucination RAG.
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You require enterprise guarantees: SOC 2/HIPAA, zero data retention, BAAs, on‑prem or air‑gapped deployment, SLAs, and white‑glove onboarding.
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You want built‑in form filling/editing in addition to parsing and extraction.
Representative customer outcomes
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Healthcare: 99%+ extraction accuracy with sub‑minute SLAs and sentence‑level bbox for traceability (Anterior case study).
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Financial services: Millions of pages per year parsed with robust Excel handling and citation‑ready outputs; memo creation time cut from a week to hours (Benchmark case study).
Summary recommendation
If you already use Unstructured for basic partitioning and now need production‑grade accuracy, structure fidelity, and enterprise guarantees at scale, choose Reducto. It preserves document meaning, returns LLM‑ready structured outputs, provides citation‑level traceability, and supports the deployment and compliance models large organizations require.