Integration Platform as a Service (iPaaS) is a category of cloud-based solutions used to connect software applications, data sources and business services.
The business integration challenge
Businesses around the world face an increasingly complex challenge connecting different IT systems, business processes and 3rd party managed services.
In the past, it was common for centralized IT departments (or system integrators) to develop point-to-point integrations between all different enterprise systems. For example creating a direct integration between the ERP and CRM systems.
The common challenge for direct integrations is that they need constant troubleshooting, monitoring and maintenance, contributing to the challenge that today IT teams spend 68% of their time ‘keeping the lights on.’
More apps = more integrations
The integration needs of businesses have grown in complexity and scale over time. It has become increasingly difficult to maintain integrations efficiently. According to Okta, the average enterprise business with over 2000 employees already uses over 175 different software applications and the number is growing every year.
iPaaS emerged as a solution to these challenges, offering a cloud-based solution that connects and integrates different technologies seamlessly and without extensive system integration resources.
How does iPaaS work?
iPaaS solutions standardize, simplify and streamline how data flows within a business and with their service partners. Typically this happens through APIs or low-code system integrations where a direct connection is formed between different end-points and the integration platform.
With an integration in place, enterprise leaders can control how data flows between different enterprise IT systems or apps either in real-time, in batches or through automated synchronizations.
The typical enterprise client doesn’t need to worry about the exact data integration method. The point of an iPaaS is to give a platform where IT leaders (and to some extent citizen developers) can visualize and manage integrations without the need for coding skills or resources.
Examples of business challenges solved by iPaaS solutions
There are many different types of integration needs in business - and there will also be major differences in the integration needs of small businesses vs. enterprise organizations.
Some of the most common integration use-cases in business include:
- Application integrations
connecting two or more applications to seamlessly run processes and keep data between the applications.
- Data integrations
organizing your different data streams for the applications and processes of your company.
- Service integrations
connecting interdependent services from various internal and external IT roles, tools and providers.
- System integrations
connecting different IT systems or tools into a single, extensive system that functions as one.
- Vendor integrations
combining and synchronizing products, services, systems, or software from external suppliers.
Key components of iPaaS solutions
With over 120 different solution providers in the market, there is no blueprint to what makes an iPaaS solution. Some solutions are limited to a configurable self-service platform, while others like ONEiO provide an automated turnkey solution.
An iPaaS typically includes some or all of these components:
- Connectors:
These are pre-built integrations that connect different applications and services — think Salesforce, ServiceNow, ZenDesk, and Slack.
- Visual integration flows:
A visual user interface that allows you to build and manage integration workflows and processes across different applications and services.
- Data mapping:
A feature that maps data between different applications and services, ensuring that data is transformed and properly formatted for use in each system.
- Workflow automation:
The ability to automate workflows and processes, such as triggering a workflow when a new lead is created in Salesforce or when a new file is uploaded to Google Drive.
- Monitoring and management:
A dashboard that provides visibility into the health and status of integrations and workflows, as well as the ability to manage and troubleshoot any issues that may arise.
iPaaS vs PaaS
Occasionally iPaaS solutions get confused with Platform as a Service (or PaaS.) PaaS provides a platform for developers to build, test, and deploy applications, offering tools like operating systems, databases, and middleware. In contrast, iPaaS focuses specifically on connecting different applications and automating data flows between them. Think of PaaS as a foundation for building software, while iPaaS acts as the glue that connects existing software applications together.
iPaaS vs Embedded iPaaS
Another point of confusion is from a new sub-category of solutions focused around embedded integrations. Traditional iPaaS solutions are standalone platforms that connect various applications and data sources across an entire organization. In contrast, embedded iPaaS is integrated directly into another software application, providing integration capabilities as a built-in feature. Essentially, embedded iPaaS takes the core functionality of an iPaaS platform and makes it available within a specific software product or suite, streamlining integration for users of that particular application.
Enterprise iPaaS Software Providers
Today iPaaS is one of the largest and fastest growing categories of enterprise software. Gartner tracks over 120 different vendors and estimates the market to be worth more than $6.5 billion of revenue in 2022.
Here are some notable enterprise integration software providers.
ONEiO
ONEiO is a next-generation iPaaS solution that automates integration processes, offering a central hub for connecting disparate IT tools, teams and vendors, enabling end-to-end process flows and data exchange across an organization's entire IT ecosystem.
HQ:
Helsinki, Finland
ONEiO provides a cloud-based integration solution for businesses focused on managing and delivering digital services. Understanding the specific needs of these companies, ONEiO offers predictable subscription-based integrations, allowing businesses to budget and plan with greater accuracy without investing in integration technologies, resources, and development. This flexibility ensures that regardless of a company’s resources or expertise, ONEiO delivers a fitting solution and allows businesses to concentrate on their core offerings without the complexities of integration development and management.
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Pros:
- Support for integrations with multiple parties and tools, with Out-of-the-box runtime intelligence.
- Flexible and predictable subscription based pricing. Supports volume-based and fixed price integrations.
- Domain experts in B2B and Ebonding, including pre-integrated vendors.
Cons:
- Small partner network
- API management capabilities
- On-premise systems can be integrated using ONEiO. However, ONEiO cannot be deployed on premise.
Mulesoft
Owned by Salesforce, Mulesoft leads in iPaaS with comprehensive integration, automation, and API management capabilities.
HQ:
San Francisco, California
Mulesoft offers the Anypoint Platform, integrating applications, automations, and APIs. It focuses on democratizing integration for teams and evolving into an automation fabric supported by AI. With strong partnerships, it's ideal for organizations seeking an API-led strategy.
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Pros:
- API creation and integration capabilities.
- Supports automation with a large template library and RPA access.
- Wide capabilities in composite service integration.
Cons:
- Pricing models can be complex.
- Focused on Salesforce data ecosystem.
- Has a ton of functionality but is not easy to use
Informatica
Informatica excels in data integration within its comprehensive Intelligent Data Management Cloud (IDMC) platform.
HQ:
Redwood City, California
Informatica focuses on amplifying data integration capabilities as part of its IDMC, offering a wide range of services for robust data management and integration strategies. It prioritizes data-centric integration with extensive features for governance, quality, and transformation, making it suitable for organizations emphasizing a unified data management approach. Informatica's global footprint and strong partner network support its comprehensive services, despite perceptions of complexity.
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Pros:
- Broad industry solutions and cloud infrastructure options.
- Strong platform security and operational reliability.
- Depth in data integration and management capabilities.
Cons:
- Pricing based on compute power can be complex and costly.
- UX focuses primarily on data, less on guided integration.
- Complex user interface
Celigo
Celigo is an iPaaS vendor focusing on automating back-office processes with a strong emphasis on AI and ease of use.
HQ:
Redwood City, California
Celigo offers integrator.io, targeting upper-midmarket and small enterprises for back-office automation. It blends ease of use with AI innovations for efficient process automation and integration. Celigo emphasizes customer success through dedicated support and a roadmap prioritizing B2B integration, improved developer experience, and AI efficiency. Ideal for empowering non-technical users while addressing complex integration scenarios.
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Pros:
- AI for categorizing and resolving runtime errors.
- Large library of business-oriented templates.
- Strategic focus on empowering citizen integrators.
Cons:
- Limited enterprise features for large-scale operations.
- Operational data cannot export to external tools.
- Complex user interface.
SnapLogic
SnapLogic's iPaaS emphasizes data integration with a focus on AI-driven automation, offering a blend of application and API management.
HQ:
San Mateo, California
SnapLogic, the Intelligent Integration Platform (IIP), focuses on data integration, leveraging AI to boost automation and productivity. It supports diverse integration needs through a user-friendly interface and a modular approach. While innovative, its B2B capabilities are modest, making it suited for organizations prioritizing low-code process automation and data integration.
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Pros:
- Easy to use integration wizard
- Transparent pricing and multi-cloud marketplace presence.
- One of the first generative AI solutions in SnapGPT
Cons:
- Limited B2B integration features.
- Limited access permissions
Jitterbit
Jitterbit offers a versatile iPaaS focusing on APIs, EDI, and citizen development, with a model conducive to predictable costs.
HQ:
Alameda, California
Jitterbit Harmony iPaaS focuses on in API, EDI, and easing citizen development, backed by a predictive pricing model. It innovates based on customer feedback, though its service integrator ecosystem is not as extensive. Its roadmap aims to improve business automation and developer support, making it an attractive option for general iPaaS needs or EDI modernization.
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Pros:
- Strong focus on EDI with significant templates.
- Simple user interface
- Customizable template marketplace for OEMs.
Cons:
- Limited prebuilt connectors and templates.
- Endpoint-based pricing model can be complex.
- Lacks cloud support for connectors.
TIBCO
TIBCO offers broad integration styles with a focus on data integration, though it has a less unified user experience.
HQ:
Santa Clara, California
TIBCO Cloud Integration includes a range of products for application, data, APIs, and automation. With a global presence and a focus on data integration, TIBCO is a fit for data-centric integration strategies and enterprises emphasizing developer self-service.
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Pros:
- Flexible, volume-based pricing.
- Diverse integration capabilities.
- Supports a wide range of integration styles.
Cons:
- Inconsistent user experience across products.
- Some functionality is only self-hosted.
- Less frequent feature updates.
Workato
Workato's iPaaS solution focuses on process automation and collaboration between IT and business through an intuitive, AI-assisted user experience.
HQ:
Mountain View, California
Workato offers a serverless integration platform emphasizing ease of use and democratized development. It accelerates business-IT collaboration with a user-friendly, AI-enhanced interface, encouraging adoption with in-product assistance and proactive customer engagement. The platform boasts a vast array of connectors, facilitating diverse integrations and automations. Despite a global presence, Workato's strategic emphasis on AI assistance and customer-centric innovations positions it as a formidable choice for organizations aiming to empower citizen developers and streamline business processes. Its approach to integration challenges not only simplifies the user experience but also promises to enhance operational efficiency and innovation across industries, making Workato an excellent choice for cloud-based business process automation and teams blending IT expertise with business insight.
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Pros:
- Intuitive user experience with AI-driven process guidance.
- Extensive library of connectors and templates.
- Fine-grained access permissions.
Cons:
- Pricing model can lead to cost escalations as new processes are added.
- Absence of out-of-the-box support for EDI and B2B-specific features.
- Reliance on Amazon AWS data centers.
Bottom line on iPaaS
As the integration needs of businesses are rapidly changing and becoming more complex, different iPaaS solutions have emerged to fulfill the needs of enterprise businesses.
You can’t only evaluate integration solutions on a feature function level. With over 120 iPaaS vendors to choose from, you need to explore different options and find a solution that fits your unique needs.
If you’re looking for an effortless integration solution, look no further than ONEiO.
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