SaaS Integration: What is it?

What is SaaS integration

Updated on by Hayley Brown

What is SaaS integration?

SaaS integration is the process of connecting cloud-based software applications so they can share data and automate workflows in real time using APIs, webhooks, or middleware platforms.

SaaS integration helps with the following:

  • Data synchronisation
  • Workflow automation
  • API-based connectivity
  • Embedded integrations

How SaaS integration works

SaaS integration works by automatically sharing data and triggering actions between application without manual input. For instance, in one scenario a new customer signs up in a SaaS product and the following is triggered by this action:

  1. User submits signup form.
  2. App backend creates user record.
  3. Webhook triggers integration layer.
  4. Integration calls CRM API to create contact.
  5. Integration calls billing system API to create subscription.
  6. Integration posts notification to team chat.

Because of SaaS integration this all happens automatically and within seconds. SaaS platforms, like HubSpot, Salesforce, Trello, Stripe and many more expose APIs that act as controlled access points to the application.

APIs allow the following:

  • Reading data (GET)
  • Sending data (POST)
  • Updating data (PUT/PATCH)
  • Deleting data (DELETE)

We refer to APIs as Connectors which are pre-built interfaces with methods and endpoints. Once APIs are connected they can communicate with each other and request information and share data with other applications. 

SaaS Integration Architecture

As a result, a SaaS application that needs the information created in another can be automatically sent or added. Without SaaS integration, the data would have to be entered manually from one app to another. This is time-consuming and prone to human error.

Which do you need SaaS integration, App integration and API integration?

Funnily enough they can all be used interchangeably to address the same thing. Even using integration alone is enough. But what you may need depends on your use case, budget and technical ability.

As we mentioned before APIs are the methods used to achieve integrations by sending instructions to different applications. Traditionally, those with technical knowledge such as developers would build integrations. Now however with the rise of iPaaS and embedded iPaaS building integrations is much simpler and quicker with low code tools. Meaning anyone who understands the data flow can create integrations without needing the technical knowhow.

We’ve put together some comparison tables to help indicate the key differences between SaaS integration, API integration, iPaaS and native integration.

SaaS Integration vs. API Integration

AspectSaaS IntegrationAPI Integration
DefinitionConnecting one SaaS application to another SaaS applicationConnecting systems using exposed APIs (can be SaaS, on-prem, mobile, etc.)
Technology LevelOften prebuilt or low-codeRequires direct API calls (REST, SOAP, GraphQL, etc.)
Setup ComplexityUsually simple (UI-based connectors)More technical (authentication, endpoints, payloads)
CustomizationLimited to platform capabilitiesHighly customizable
MaintenanceManaged by integration platform/vendorRequires monitoring of API versioning and changes
Use Case ExampleSyncing contacts between Salesforce and HubSpotBuilding a custom integration between a mobile app and Stripe

The key difference here is that SaaS integration is often packaged and user-friendly. Whereas API integration is the underlying technical mechanism that required developers to implement.

SaaS Integration vs. iPaaS

AspectSaaS IntegrationiPaaS
DefinitionDirect connection between SaaS appsCloud-based integration platform that connects multiple systems
ScopeTypically point-to-pointCentralized integration hub
ScalabilityLimited for complex ecosystemsBuilt for enterprise-scale orchestration
ManagementManaged individuallyManaged from a unified dashboard
Transformation LogicBasicAdvanced data mapping, transformation, workflow automation
Example VendorNative connectors inside ShopifyCyclr, Workato, Zapier

The key difference here is that SaaS integration connects apps directly whereas iPaaS centralizes and orchestrates integrations at scale. An iPaaS helps to build an eco-system of integration but sits externally to a SaaS application.

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A leading embedded integration platform that connects SaaS ecosystems in minutes.

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SaaS Integration vs. Native Integration

AspectSaaS IntegrationNative Integration
DefinitionAny integration involving SaaS appsBuilt directly by the SaaS provider
Built ByThird-party platform or APIThe SaaS company itself
CustomizationModerateTypically limited but optimized
MaintenanceShared or externalFully owned by vendor
ExampleUsing Zapier to connect appsNative Slack integration inside Asana

The key difference here is that native integrations are first-party and tightly controlled; whereas SaaS integrations may rely on third-party tools. These tools could be the likes of Zapier an iPaaS or Cyclr, an embedded iPaaS.

Real-World SaaS Integration Use Cases

CRM ↔ Marketing Automation

Use case: SalesforceHubSpot – Lead lifecycle synchronization

  • Marketing captures leads in HubSpot via forms and campaigns.
  • Qualified leads (MQLs) sync to Salesforce as Leads.
  • Sales updates status (SQL, Opportunity, Closed-Won).
  • That lifecycle data syncs back to HubSpot for attribution and nurture segmentation.

This SaaS integration provides the following value:

  • Aligned sales + marketing pipeline metrics
  • Closed-loop reporting
  • Better lead scoring

The possibilities with SaaS integration are endless and the ability to expand your product functionality in a variety of ways if highly attractive to prospective customers.

Billing ↔ ERP

Use case: StripeNetSuite – Revenue recognition automation

  • Stripe processes subscription payments
  • Invoice + payment data sync to NetSuite
  • NetSuite manages revenue recognition and financial reporting

This SaaS integration provides the following value:

  • Eliminates manual journal entries
  • Accurate financial close
  • Real-time cash visibility

HR ↔ Payroll

Use case: BambooHRADP Employee record synchronization

  • HR updates employee records in BambooHR
  • Salary, tax, and benefits data sync to ADP
  • Terminations automatically update payroll status

This SaaS integration provides the following value:

  • Fewer payroll errors
  • Reduced duplicate data entry
  • Faster onboarding

SaaS Integration Benefits

  • Saves substantial time: there are a number of benefits to SaaS integration, but firstly the most obvious is the amount of time saved when automations are implemented. Other than setting up the integrations no more time is spent and no manual data entry.
  • Reduces human error: manual data entry can be prone to numerous errors, we are human after all. However these could be costly mistakes could be eliminated with integration as the information is automatically synced from one app to another.
  • Increases transparency: SaaS integration means the right information is right in front of the right teams at the right time. With data being automatically shared between applications teams can be kept up to date and make informed decisions, rather than working in data silos.
  • Improves customer and employee experience: things happen fast these days or at least that is what people have come to expect. With connected applications processes are in place and ready to go when a new order comes in, a booking has been made or a payment has been processed. Resulting in better customer service and experience.
  • Makes processes scalable: with integrations, they can grow as you do from Startup to Enterprise. This is because they are a key component of automation strategies and help progress your digital strategy and digital transformation.

Learn why SaaS integration is hard and how to overcome its challenges next!

SaaS Integration: Why is it hard?

Why is SaaS Integration hard

Discover Cyclr’s Native Embedded iPaaS

A leading embedded integration platform that connects SaaS ecosystems in minutes.

Why Wait? Accelerate your integration Roadmap in Days, not Quarters.

About Author

Avatar for Hayley Brown

Hayley Brown

Joined Cyclr in 2020 after working in marketing teams in the eCommerce and education industries. She has been writing technical integration content for 5 years and is able to turn complex ideas into visual graphics. Follow Hayley on LinkedIn