The evolution of embedded iPaaS – from API integration to AI interoperability

What are integration templates

Updated: | Originally published: | By Susanna Fagerholm

No B2B SaaS product operates in isolation anymore. It sits inside a customer’s existing technology stack, next to their CRM, their finance tools, their internal AI agents, and it’s expected to work with all of it. Interoperability has moved from a nice-to-have to a baseline requirement and embedded iPaaS is the category that’s had to evolve fastest to keep up. 

API integration has traditionally addressed connectivity between applications. While API integration remains fundamental, product teams must now also expose APIs to AI agents, support MCP (Model Context Protocol) servers, manage authentication for autonomous workflows, and orchestrate data between large language models and the rest of the stack. 

The evolution from API integration to AI interoperability does not create an entirely separate infrastructure problem. Both depend on secure, scalable access to a platform’s data and capabilities for human-configured systems and AI-driven consumers. Building that infrastructure in-house is possible, but it creates a substantial engineering and maintenance commitment that competes with product development. 

API integration is the interoperability standard customers already expect

Customers expect SaaS platforms to connect with the tools they already use, including Salesforce, HubSpot, Xero, Slack, and Shopify. But every integration a SaaS company builds in-house is a maintenance commitment. APIs change, auth methods change, edge cases pile up per customer. Multiply that by however many tools its customer base wants to connect, and an internal integration team suddenly spends more time maintaining infrastructure instead of developing product features. 

An embedded iPaaS provides an alternative. It operates inside the SaaS product and enables customers to configure integrations through self-service, without the vendor’s engineers building and maintaining every connection. 

Integration Workflow with Cyclr's Low Code Tools(crop)

How Cyclr delivers embedded API integration

Cyclr’s embedded iPaaS gives SaaS companies the ability to connect a customer’s systems to the other tools they use. That includes:

  • 600+ pre-built connectors, covering the most popular platforms to the more niche ones, with the added ability to build proprietary custom connectors to any API.
  • A visual drag-and-drop builder, for building, managing, and scaling integrations without heavy engineering investment. 
  • Multi-tenant architecture that gives each customer a ring-fenced account, its own credentials, and its own data flow. 
  • Integration management tooling, with monitoring, logging, and operational visibility.
  • A private instance option for running the platform within the vendor’s own AWS environment when region, data processing, or compliance requirements demand it. 

And companies can choose how those integrations get delivered. Native Embedded iPaaS suits SaaS companies embedding integrations directly inside their own product, for customers to self-serve. Service Embedded iPaaS suits service providers deploying the same integrations on behalf of multiple clients from one platform. 

AI access is interoperability’s next frontier

The AI side is newer and less settled. An LLM or agent that needs to act on a platform’s data requires a defined, secure access method. Building that access independently means developing authentication, tenancy, and access controls for AI consumers alongside the infrastructure already supporting human users. 

Cyclr’s MCP PaaS gives SaaS teams a way to create and publish MCP servers to their users, natively within their application, turning an existing API into a fully-fledged, user-configurable MCP server. Authentication, tenancy, and security are handled as part of the platform, so there’s no separate AI access layer for the vendor to design and maintain.

MCP servers that would otherwise require months of custom development can launch in days. Customers can connect LLMs to the platform’s data using the same underlying account model that governs security and scoping across the multi-tenant system. 

Designing scalable embedded mcp integrations

One infrastructure layer for API integration and AI access 

Handled separately, integrations and AI access tend to produce two parallel systems: one for connecting to third-party apps, another for connecting to AI agents, each with its own authentication, tenancy, and governance logic to maintain. Maintaining that duplication consumes engineering resources.

Cyclr combines its embedded integration platform (iPaaS) and MCP PaaS on the same foundation. B2B SaaS companies and service providers can manage both forms of connectivity through one platform. The account model that controls authentication, permissions, and usage for integrations also extends to MCP servers.

The shared foundation supports four capabilities:

  • Embedded integrations that customers configure themselves, inside the product.
  • MCP servers that expose trusted tools and business context to AI agents, chatbots, and automation layers.
  • Governed data access, turning approved integrations and workflows into controlled, reusable tools instead of one-off builds.
  • Security and compliance at scale, with end-to-end encryption and the certifications enterprise customers ask for.

A shared interoperability platform 

SaaS companies must support connections to customers’ existing applications and, increasingly, the AI agents those customers use. Both requirements involve the same infrastructure decision: build and maintain connectivity internally, or use a platform designed to support both.

Cyclr provides a shared connectivity layer for embedded API integrations and AI access, allowing teams to avoid maintaining separate systems for each requirement.

Teams evaluating their interoperability strategy can get in touch to discuss how the platform fits their specific product and roadmap.

About Author

Avatar for Susanna Fagerholm

Susanna Fagerholm

Joining Cyclr in 2024, Susanna is an experienced Content and Communications Expert specialised in corporate account management and technical writing, with a keen interest in software, innovation and design.