iPaaS Providers & Software Comparison

iPaaS Definition: What is an Integration Platform-as-a-Service?

An Integration Platform-as-a-Service (iPaaS) typically encompasses a series of partially automated tools for integrating different software that can run in different environments. Companies that operate systems at the enterprise level often use iPaaS to integrate applications and data that exist both on-site and in public and/or private clouds. Typically, an iPaaS platform offers prefabricated connectors, specific business rules, maps, and transformations, which facilitate the development of holistic applications and orchestrate corresponding integration flows. Some iPaaS providers offer custom development kits to modernize legacy applications and add features, such as mobile capabilities, integration with social platforms, and business data management. While businesses with an IT department can perform such integration themselves, it is often more efficient or economical not to burden IT staff with these tasks and instead put them in the hands of a suitable iPaaS provider.

Why do companies need iPaaS software?

The rapidly growing technological progress has prompted companies to continuously review and rethink their digital transformation strategies. In more and more industries, companies can only stay one step ahead of their competition in this way. The increased introduction of cloud applications, such as Platform-as-a-Service services (PaaS), Software-as-a-Service services (SaaS), and other highly efficient solutions, is a key factor in this development. Unfortunately, applications or their data within a company are often inconsistent and distributed across various locations or platforms. One of the biggest challenges for companies is the appropriate integration of all these digital helpers and their data, which are provided both on-site (on-premise) and in the cloud. The goal is a smooth and efficient process and data exchange, both internally and externally. In order to achieve their digital transformation concerns, companies must integrate more systems, human resources, and things than ever before. The connections require unprecedented speed. Optimally networked units enable companies to significantly improve their processes, reduce their costs and, on top, even maximally satisfy both customers and employees. An iPaaS solution essentially plays a mediating role. All core processes of otherwise separate systems run together via it and form a uniform solution. It serves as a channel for communication between the systems and enables the integration and joint use of relevant data and processes.

How does an Integration Platform-as-a-Service (iPaaS) or iPaaS software work?

Typically, iPaaS providers host application servers and infrastructure data and provide specific integration tools and middleware to help developers in creating, testing, deploying and managing holistic systems in the cloud. Most iPaaS providers significantly accelerate the development of integration flows within a company by providing prefabricated iPaaS connectors, business rules, and other elements important for connecting different systems. All the necessary steps for perfect integration are - if desired - taken over by the iPaaS. Interested parties can think of an iPaaS provider like a kind of general craft company, which is, for example, entrusted with the management and practical support for a kitchen renovation. While the client selects the furniture, the appliances, the flooring, the lighting or other individual design options, the contractor takes care of the practical steps, such as procuring materials or coordinating specialists, such as electricians and carpenters. In the end, there is ideally a functional and visually perfect kitchen. The use of an iPaaS is similar: The provider takes care of the management and control of the various systems towards a holistic construct. This usually happens based on the requirements defined by the client company. In a corresponding application integration process and finally also during operation, the integration platform communicates with the various systems in their respective languages. Through specific processes, it transforms the respective data into the format of the target applications and integrates them.

What are the advantages and disadvantages of iPaaS integration or iPaaS software?

The central advantages of an enterprise iPaaS solution include the following:

• Cost efficiency: An iPaaS solution can help save costs of hiring highly paid developers for creating and deploying integrations. Such software is available as a subscription in the cloud, so there are no additional costs for hardware or for creating and maintaining special human resources.
• Increased efficiency and productivity: An iPaaS software typically helps companies integrate multiple applications and data seamlessly and efficiently, regardless of their location. This makes real-time data and corresponding processes easily available and the teams concerned save a lot of time. They no longer have to juggle different applications and systems. A centralized dashboard, which is usually provided via an iPaaS solution, provides companies with continuous visibility of their integration flows and thus makes it easier for them to focus on other processes that can run less software-supported.
• Less complex and user-friendly: iPaaS tools are usually based on low-code or zero-code development. This means that employees or end-users do not have to be highly specialized programmers to use an iPaaS platform. The application can be delivered with prefabricated connectors that significantly accelerate integration projects and help companies drastically reduce the time for creating integrations. Since the platform is in the cloud, the provider company also takes responsibility for the maintenance, upgrades, security, and reliability of the solution.

Are there any disadvantages to these clear iPaaS benefits at all? Indeed, like any software, iPaaS tools can bring certain problems. The most common challenges are:

• Difficult individual requirements: Although iPaaS tools cover numerous integration requirements and use cases, there may be unusual contexts for which an iPaaS is not an ideal solution. This could be because the requirement is technically too individual. A major disadvantage of an iPaaS solution is therefore that it is sometimes not able to meet highly specific functional and technical needs. Therefore, it is particularly important to be very careful when selecting an iPaaS software to ultimately get an application that can truly optimally serve the respective requirements.
• Focus of deployment: Many iPaaS tools work better under certain circumstances and in certain use cases than others, which can make it difficult for companies to choose the really right provider.
• Human resources: While an iPaaS can take responsibility for much of the administrative functions, the user company must still provide staff to monitor the operation of the platform and to regularly assess its impact on business processes. Although this does not usually require hiring additional employees, it is additional effort - and this is not always recognized in advance.
• Security: iPaaS software can largely ensure and manage the security of a holistic system. However, the company is ultimately still responsible for and liable for any breaches or data loss. Compliance and data protection should always be kept in mind.

How to choose the right iPaaS tool or what should you pay special attention to?

Evaluating iPaaS vendors for fit to your own needs requires a close look at the relevant requirements first. These should always be met with the solution. If you are just starting your research, you should ask yourself the following questions about the software in relation to the requirements and must-haves in your own company.

• Do the users need to have programming knowledge to be able to use the platform or are there related resources available in the company?
• How scalable is the iPaaS service - does it meet existing and later requirements in this respect?
• Are there latency times for large amounts of data?
• What security protocols are integrated into the architecture - can potentially more required be added?
• Who takes care of updates and maintenance - is everything completely in the hands of the provider or is there a requirement for effort on your part?
• Are tools for creating, testing, deploying, and managing integration flows part of the service?
• Is there a dashboard to track resource usage?
• What applications are supported for integration, is this list expanded?
• Does the iPaaS application support integration with IoT, B2B integration and API management?
• Is data synchronization in one direction or both directions?
• How extensive are the iPaaS platform's data mapping and data transformation functions - which control does the product offer with respect to data that is synchronized between apps?
• What integration patterns are used: point to point or one to many - the latter is often easier to handle when multiple integrations need to be done.
• Are multiple connection protocols and data transmission methods supported?
• Is integration relatively seamless or do users have to visit a third-party website?
• Is the offer white-label capable?

Company managers should carefully consider these questions in connection with their requirements and document appropriate answers. Eventually, they will ideally receive a checklist with specific criteria based on which suitable iPaaS software can be identified. It is important to determine the number of employees who will need to use the solution, as this may decide on the license and its price that will be purchased in the end. In this process, the specific possible functionalities must of course not be overlooked. Because without knowing what an iPaaS tool can actually do, it is hardly efficient to determine which type of application is needed. The following typical features should always be considered or at least taken into account.

• API Designer: iPaaS solutions usually offer a web-based interface for designing, documenting, and testing APIs.
• Workflow Designer: This technology enables easy automation of workflows - usually using a drag-and-drop interface.
• Prefabricated connectors: iPaaS software facilitates API development and integration through prefabricated connectors, templates, and iPaaS examples.
• Custom connectors: Custom connectors offer the ability to create connectors from existing services and APIs in catalogs.
• Monitoring and notification: iPaaS solutions often offer a console for monitoring resource usage and system status and corresponding notifications and further controlling features.
• Reports and analysis: The report and analysis function offers dashboards to get (real-time) insights into API performance, usage and possible errors.
• Routing and orchestration: iPaaS enables data routing based on configuration and management of complex workflows through an orchestration engine.
• Data mapping: Data mapping facilitates the mapping of information back and forth according to the data model between applications and/or web services.
• Data transformation: Standard tools and functions are available to convert data values from the data format of a source system into the data format of a target system.
• Data encryption: iPaaS tools use modern data encryption both in dormant state and during information transmission.
• Role-based control: iPaaS controls the secure, efficient access to integration functions by assigning roles to users.
• Security standards: The security standards in iPaaS solutions meet the main industry standards (or should do so) to protect data and secure processes.
• Communication protocols: Ideally, iPaaS supports secure communication protocols, such as FTPS, SFTP, and others.
• Data virtualization: iPaaS software can integrate data from different sources without having to "physically" move the information.
• Master data management: iPaaS supports the management of master data, among other things by removing duplicates, standardizing mass data, using rules, and much more to prevent unfavorable information from entering or being processed in the system, resulting in inefficient processes.
• Big data processing: Big data processing features enable integration with big data sources.

What does an iPaaS Platform cost?

The different providers usually offer iPaaS as subscription services, with pricing tiers based on numerous variables - such as the number of connections and the people who are supposed to use the system, the data volume, processing power, or the number of events. Lightweight iPaaS can be obtained very cheaply. They start at around ten euros per month and per user. However, with such cheap tools, the number of functions is sometimes severely limited. These solutions are therefore usually not viable options for managing complex integrations at the enterprise level. Many companies prefer the subscription model to keep costs affordable and predictable. However, there are also on-premise software. These are - especially when they are purchased and not rented - significantly more expensive, but if they are open-source iPaaS software, they also offer tremendous flexibility. More or less hidden costs often come with a developer fee for the individual creation and deployment of integrations as well as for priority support and for training.