SaaS, IaaS and PaaS are the classic cloud service and delivery models. Each reflects the different needs and services customers would want from a cloud solution. An iPaaS or embedded iPaaS (integration platforms) are a similar cloud-based service delivery model. However, these types of cloud services focus on providing native integration capabilities to users. For instance, either integrating an Enterprise’s internal processes or expanding SaaS products integration capabilities.
As a result, the need to either integrate internally or provide integration services to customers means the iPaaS market size continues to grow and gain more recognition.
iPaaS or Embedded iPaaS
The iPaaS (integration Platform as a Service) cloud model allows customers to build integrations between applications or data sources within the cloud. In other words, they provide users with ready-made tools and elements to construct connections between systems.
An iPaaS has been defined by Gartner as “a suite of cloud services enabling development, execution and governance of integration flows”. In other words, an iPaaS connects combinations of on-site and cloud-based processes, applications and data within individuals or across multiple organisations.
Whereas an iPaaS application is designed for an end-user/enterprise to use directly to resolve their own problems. An Embedded iPaaS solution allows SaaS vendors to create, manage and deploy integration services to their clients directly from within their own platform.
Therefore enabling a SaaS vendor to resolve integrations on behalf of their users. All seamlessly from within their own SaaS product. In addition, the embedded iPaaS is able to run automation and logic, providing more than just simple updates from one platform to another.
The Embedded iPaaS toolkit should save a software company time and money. While also being more agile and adaptable than coding integrations themselves. According to Forrester “an embedded iPaaS is a strategic element of digital transformation.”
iPaaS Market Growth
The iPaaS market has seen rapid growth and generated $3.47 billion in revenue during 2020 growing by 38.7%. The market is expected to grow further and exceed $9 billion in revenue by 2025. According to Gartner’s Magic Quadrant for Enterprise Integration Platform as a Service 2021.
It cannot be ignored that the pandemic had an impact on the growth of the iPaaS market. For instance, the technological and IT market shifted as millions were sent to work from home, customer demand changed, and supply was disrupted. As well as organisations realise their need to step up their digital transformation efforts to help weather the pandemic’s impact.
Source Market Research Future,
The Integration Platform as a Service (IPaaS) market size is expected to Reach Approximately USD 2 billion by 2023
An increase in the use of different applications across an organisation has created a priority to connect them. This in turn helps improve an organisation’s efficiency, enhancing its scalability and reducing expensive IT costs. The increased iPaaS adoption can also be attributed, according to ReportLinker, to “exponentially increasing cloud real-time monitoring services, the need for business agility, faster deployment, and scalability.” As key factors in driving the growth of the iPaaS market.
Where does Embedded iPaaS sit within the market?
There are various different types of iPaaS and embedded iPaaS within the market, they are broken up into various segments.
| Service Types | Cloud Service Orchestration Data Transformation API Management Data Integration Real-Time Monitoring and Integrations Business to Business (B2B) Cloud Integration Application Integration Training and Consulting Support and Maintenance |
| Deployment Types | Public Cloud Private Cloud Hybrid Cloud |
| Organisation Types | SME Large Enterprise |
| Vertical Type | Banking, Financial Services and Insurance (BFSI) Healthcare Manufacturing Education Media & Entertainment IT & Telecommunication Government |
Source Market Research Future, Integration Platform as a Service Market
There are several key players in the Embedded iPaaS market who are paving the way in the industry. Each caters to a slightly different segment within the market whether that is eCommerce, marketing or ERP. Many of the leading providers have the ability to tackle any and all verticals within their powerful toolkits.
Helping key SaaS organisations become more agile in their processes and achieve a key pillar in their digital transformation efforts.
Embedded iPaaS Features
There are common features that embedded iPaaS platforms exhibit theses include:
- Embedding Options
- Cyclr’s embedding options come in the form of an Embedded Marketplace, LAUNCH, Data on Demand, and Service Led Deployment.
- Cloud Architecture
- Shared Hosting, Private Cloud
- Custom and Built-In Connectors
- Cyclr has over 400 ready-made connectors in its library and users can build their own custom connectors for extra functionality.
- Drag and Drop Workflow Builder
- Many embedded iPaaS providers have drag-and-drop workflow builders where low code tools are used to quickly build integrations.
- Data Visualisation and Business Intelligence
- A dashboard where users can view accounts, integration usage and performance.
- Unified Proxy API
- Enabling extra customisation to integrations and bespoke UI for your integration deployment.
Who is using them?
There is a difference between an iPaaS and an embedded iPaaS. Typically an iPaaS is used for internal automation within your organisation. Whereas an embedded iPaaS is aimed at the likes of SaaS vendors, system integrators, and enterprise organisations. They are wanting to expand their product and offer end-users new integrations and workflow automation.
What are the use cases?
There are several reasons or use cases why an organisation would want or need an embedded iPaaS.
Adding embedded iPaaS functionality directly into your SaaS application allows your users to click and activate the integrations they need. This is done without fracturing the process and sending your users off to a potential competitor to complete integrations. In addition, the integrations can be easily designed and monitored within the backend.
An embedded iPaaS allows users to build integrations for repeated integration scenarios. Users, such as system integrators will have a standardised infrastructure for all their integrations. Therefore they will only need to build the integration components once, these can then be self-served to the end-user. This self-service portal is typically presented via a white-labelled interface for a better user experience. Delivering integrations under your SaaS styling.
Using an embedded iPaaS enables users to pull data from all types of devices, understand the data and act accordingly. The iPaaS can make connections between different types of cloud, on-premise, and IoT devices. Above all improving responsiveness and reducing communication costs.
The typical embedded iPaaS use case is data integration transferring data from one system to another. Enabling data to be sent in real-time for the most up-to-date information. This also has a positive impact on communication as the data will be received in a format the system understands. As well as application-to-application integration. The data from disparate systems is available in a single platform. This means stakeholders can make informed decisions based on the entity of data.
Benefits of an Embedded iPaaS
| Enhance customer experience with native integrations | Using an embedded iPaaS allows your commercial or product teams to upskill employees to use low-code tools. Letting your development team focus on your core product offering. |
| Retain control of your customer relationships | Don’t rely on third-party applications to resolve integrations. This breaks the continuity of your relationship with your customer and risks exposure to a competitor. |
| Increased speed in time to market | Adding connectivity in days not months allows you to add transformative technology to your product. Enabling you to be responsive to the needs of your customers. |
| Integration delivery options | Commercial Teams can use a drag-and-drop, no-code integration builder to create template integrations. Then simply click to publish in your application. Allowing your users to search and deploy integrations in seconds. Development Teams can create custom integrations with a single API to deliver an advanced user experience behind your own SaaS UI. Using the API to act as a proxy can access all of your external application data. Allowing you to perform more advanced data processing. |
| Saves substantial development time and cost | Using an embedded iPaaS allows your commercial or product teams to upskill employees to use low code tools. Letting your development team focus on your core product offering. |
Thus the use of an embedded iPaaS can result in huge time savings. As well as a reduction in customer churn due to an improved integration experience.
What opportunities do they provide?
Using an embedded iPaaS is not only beneficial to your end-user’s integration experience but provides other internal opportunities.
For instance, an embedded iPaaS provides the chance to upskill your existing employees. On numerous occasions, we have heard from our customers that using Cyclr has enabled them to upskill employees across different teams.
They tend to sit in the product or commercial teams so they are not developers. They are individuals with an appetite to quickly roll up their sleeves and write a bit of code to try and solve a problem. Rather than rely on developers.
In addition to the upskilling of employees, it can result in the delivery of faster integration development times. Now integrations are being handled by numerous individuals, not just developers; they are now executed faster. Rather than being added to a development sprint further down the line.
This in turn reduces the reliance on developers and their backlog. Therefore they can focus on the growth of your product rather than your native integration capabilities. As those are now handled by an embedded iPaaS enhancing your product.
In conclusion, an embedded iPaaS is an integral part of removing old and outdated legacy systems. For instance, the embedded iPaaS can collate data from outdated systems into one single view. Therefore improving business intelligence, and helping to achieve an organisation’s digital transformation.
