What is integration platform as a service (iPaaS)?
An iPaaS is a cloud platform that can connect applications, data, processes, services, and events across cloud and on-premises environments.
iPaaS overview
At the heart of business innovation is information. More specifically, the ability to integrate information so it can be used to provide big picture insights and power new things – from unique services and business models to the latest tech. This is the job of an integration platform-as-a-service (iPaaS). It can connect information from anywhere – applications, data sources, processes, services, and events across cloud and on-premises environments, from inside and outside the business – paving the way for faster innovation and unprecedented automation.
When these applications and relevant processes are not properly integrated and managed, it means that data can’t easily be shared between them, leading to a lack of visibility across the enterprise. Integrated connections are also needed to support AI technology, automated processes and workflows, and updates that can be acted on in real time. That’s why the best businesses are increasingly leaning toward an integration platform as a service (iPaaS) to unify and digitise their business operations and add compatible solutions in a strategic way.
iPaaS meaning and definition
iPaaS stands for integration platform as a service. It consists of cloud services that unify otherwise fragmented applications, data, processes, services, and events across cloud and on-premises environments. Using pre-built connectors and API management tools, an iPaaS can help companies build, manage, and monitor integration flows across any number of systems, from any vendor, in a centralised and automated way.
Ultimately, an iPaaS is designed to help solve integration challenges, streamline and standardise integration activities, and make it easier to automate processes and share data across the business and across multiple organisations.
The importance of an iPaaS platform
Business information today comes from everywhere: from departments like finance, manufacturing, and customer service to suppliers, partners, and broader business networks. This information is captured and stored in a variety of systems in the cloud and on-premises. When these systems aren’t properly integrated and managed, it means that data can’t easily be shared between them, leading to a lack of visibility across the enterprise. Integrated connections are also needed to support AI technology, automated processes and workflows, and events that can be acted on in real time.
Other (older) approaches to enterprise integration, such as custom development and point-to-point, are typically slow, time-consuming, and error-prone – and they can’t keep up with the sheer volume of applications, data, processes, services, and events used by businesses today. A more modern, automated approach is needed, and this is where an iPaaS comes in. An iPaaS can help create these important pathways faster, without needing vast IT resources or dedicated development teams. It can smash silos and connect all business information from all systems and sources on a single cloud platform – and by doing so, it’s become a great enabler of business innovation and transformation.
Integration platform as a service benefits
Beyond making consistent, enterprise-wide connections, an iPaaS delivers a host of other advantages:
Faster-than-ever integration through pre-built connectors, integration flows, and API management
A single version of the truth thanks to better communication between apps, processes, and systems
Adaptability to rapid change through real-time, big picture insights from all relevant sources
Business innovation – such as new processes, services, and experiences – fuelled by connected information
Automation of complex business process across the business and beyond
Seamless connectivity across systems, regardless of deployment method.
Tight security and compliance through vendor-managed, enterprise-grade security, data privacy, and protection
Increased efficiency through a centralised management system that can be accessed from anywhere
How does an integration platform work?
Like other “as a service” software, an integration platform is hosted by a cloud service provider who is responsible for providing software updates, high availability, disaster recovery, security, and technical support. The platform includes tools for developing and deploying integration flows without having to install or manage hardware or middleware. The iPaaS becomes a central place to create, manage, and modify application and process integrations across the business.
Modern platforms include AI and machine learning technology to help automate development and make smart recommendations. They also typically include an event-driven architecture (EDA) that supports high-volume, real-time event processing across a network of systems – for lightning-fast responsiveness.
Types of iPaaS integrations
There are a number of different types of iPaaS integrations available depending on the vendor. Some focus exclusively on one area while others offer a combination.
Here are some of the most common integrations supported:
Cloud integration: Cloud integration brings together multiple hybrid or cloud environments into a single IT infrastructure in order to unify processes, systems, and applications. It supports building and running a variety of integration flows, process integrations, and message exchanges.
E-commerce and B2B integration: This type of integration automates communications and processes between customers, suppliers, and trading partners. Not only can it power more efficient and scalable e-commerce processes through a common view of customer interactions, it paves the way for faster, more secure collaboration – for everything from invoicing to shipment tracking and beyond.
Business to government (B2G) integration: B2G integration supports secure electronic transactions and communications between businesses and government agencies. It also helps with standardising the digital registration of documents to meet regulatory compliance requirements.
Data integration and migration: With data integration capabilities, information from multiple sources is combined into a single structured and unified view. Data migration services actually move data from one system to another.
Application to application (A2A) integration: As the name suggests, A2A integration orchestrates the flow of data and functionality between discrete applications. It includes processes for keeping each application’s data in a consistent format, directing the flow of activities, and providing a single interface to use for both applications.
API integrations: This type of integration makes it possible for two systems to share data and communicate securely with each other automatically through each system’s application programming interface. Once connected, these systems can interoperate in real time and be accessed remotely to save time and money.
API publication and marketplace: This type of integration supports defining, publishing, and monetising APIs for business partners on internal and external developer portals, catalogues, and marketplaces. This can be used to monetise new business models and services, the way Uber did when they leveraged their existing application infrastructure to expand into food and then freight delivery.
The types of integration needed by an organisation will factor into their selection of an iPaaS provider. Another factor is the combination of capabilities offered.
iPaaS examples: Features and functionality
To help companies integrate applications faster and support real-time synchronisation, most enterprise iPaaS platforms feature a robust tool set that requires little to no programming. Here are some of the most common:
Graphical development of integration apps: With graphical development iPaaS tools, integrators can use drag-and-drop connectivity components, widgets, and business logic to quickly develop integration apps without the need for custom coding.
Integration connectors: Most iPaaS vendors provide a library of connectors, pre-built code designed to connect and interact with specific apps or data sources. These will usually cover common endpoints, but can also include third-party connectors and generic standards-based connectors such as REST APIs.
API management: This capability lets you manage the design, development, security, and lifecycle of APIs across multiple platforms. This usually includes monitoring and analysing their usage, performance, and any errors that may arise.
Event mesh: Support event-driven processes and real-time scenarios with features that allow applications to communicate through asynchronous events, such as when information in an app is added or deleted – or when a customer places an e-commerce order. Event-driven architecture can help organisations rapidly meet business demands and changing conditions.
Guided integration: Some iPaaS providers offer a guided methodology for defining and executing a winning integration strategy, including determining the right mix of tools, integration flows, and approaches. This can take the form of predefined integration patterns and architecture blueprints, as well as standardised best practices.
The future of iPaaS software
After a rapid growth spurt of 72% in 2017, the iPaaS market is growing at a rate of about 21% year over year according to Gartner analysts – and it has already become mainstream with 20% to 50% of the target market using it for rapid and automated integration.
With new applications and business models arising all the time, the technology will likely become even more ingrained into an organisation’s software landscape. AI, machine learning, RPA, and advanced analytics will continue to augment integration capabilities, automating complex integrations for even faster response times. More zero-code options will make iPaaS accessible for every type of business user and business.
iPaaS solutions from SAP
Our iPaaS is SAP Integration Suite, a recognised leader in the market space. To help organisations solve their biggest integration challenges, our cloud-native iPaaS software provides a multitude of integration tools and pre-built content as well as AI-powered development and guidance. With thousands of pre-built integrations, hundreds of third-party application connectors and business events, it streamlines integrations to any SAP and third-party system including applications, B2B businesses, and governments. With its API-first approach, the iPaaS platform can integrate applications and processes across diverse landscapes and ecosystems – and also pave the way for offering profitable new services. In addition, it can process billions of messages and API calls each month – for ultimate scalability.
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