The classic cloud service and delivery models – SaaS, IaaS, and PaaS – reflect customers’ different needs and benefits from a cloud solution. iPaaS or embedded iPaaS (Integration Platform as a Service) is a similar cloud-based service delivery model focusing on providing native integration capabilities to business users.
Integration Platform-as-a-Service (iPaaS)
An iPaaS – a class of Paas, creates APIs, integrations, and micro-services, allowing you to manage your APIs and integrate with other business applications in the market that most companies go through. Seeing how there are 2500+ business-level applications in the market, creating and maintaining integrations in-house is not always ideal or prudent, especially if you’re a growing business. It should incorporate SaaS and on-premises apps. The top solutions tend to be lightweight, cloud-native, and easily accessible by developers and non-technical users via visually intuitive user interfaces and dashboards.
But what exactly are embedded integration platforms, and why are they needed? Will they help you grow your SaaS? If yes, then how do you choose the right one for your team?
About Embedded iPaaS
Embedded iPaaS, also known as embedded integration platforms as a service (iPaaS), helps SaaS companies build and manage native integrations connecting their existing products to the other products their customers use. The powerful platforms include tools such as a low-code integration designer, pre-built connectors to everyday applications, an embeddable integration user experience (UX) for customers, integration support tools, and the infrastructure to deploy and run the integrations.
Difference Between iPaaS and Embedded iPaaS
Compared to traditional methods, these solutions help SaaS teams build better integrations faster by reducing effort, outlining complexity, and providing ready-made management tools and elements to construct connections between systems. It also enables non-developers to take on much of the integration workload.
According to Gartner, an iPaaS is “a suite of cloud services enabling development, execution, and governance of integration flows,” which means an iPaaS connects combinations of on-site and cloud-based processes, applications, and databases within or across multiple organizations.
The difference between iPaaS and Embedded iPaaS – an iPaaS application is designed for an end-user/enterprise to use directly to resolve their problems. Whereas, to create, manage and deploy integrations to their clients directly from their platform, SaaS vendors can use an Embedded iPaaS solution. Thus, it enables a SaaS vendor to seamlessly resolve integrations on their users’ behalf from within their own SaaS product. Above all, more than just simple updates from one platform to another, the embedded iPaaS can run automation and logic, saving a software company time and money with its toolkits and being more agile and adaptable than coding integrations themselves.
According to Forrester, an embedded iPaaS is a strategic element of digital transformation.
Market Growth of iPaaS
The iPaaS market growth in 2020 was around 38.7%, as the market witnessed rapid growth and generated $3.47 billion in revenue. Further, it is expected that by 2025, the market will grow and exceed USD 9 billion in revenue. According to Gartner’s Magic Quadrant for Enterprise Integration Platform as a Service 2021.
Given thought, it cannot ignore the pandemic impacted the growth of the iPaaS market. For instance, the technological and IT market shift has sent millions to work from home, customer demand changed, and supply has been disrupted. As a result, organizations realize their need to step up their digital transformation efforts to help weather the pandemic’s impact.
An expansion in using different applications across an organization has created a priority to connect the, enhancing its efficiency and scalability and reducing expensive IT costs. According to ReportLinker, the increased iPaaS adoption can also be attributed to exponentially advancing cloud real-time monitoring services, the need for business agility, faster deployment, and scalability.
Embedded iPaaS Within the Market
Within the technology market, various types of iPaaS and embedded iPaaS are divided into various segments. Several keys Embedded iPaaS providers are paving the way in the industry. Each caters to a slightly different market segment, whether eCommerce, marketing, or ERP. Multiple leading providers can tackle any verticals within their powerful toolkits and assist diverse organizations in becoming more agile in their processes and achieving a key pillar in their digital transformation efforts.
Opportunities Provide by Embedded iPaaS
An embedded iPaaS benefits the end-users integration experience and provides other internal opportunities. It also tends to reduce the workload of the engineering teams and boosting their productivity by approx 30% of businesses, because naturally they can’t hire integration experts for their or their clients’ needs. For example, given an illustration, an embedded iPaaS allows you to upskill your existing employees. In addition to the upskilling of employees, it can result in the delivery of faster integration development times, thus improving your product’s GTM strategy.. Now integrations are being handled by numerous individuals, as they are executed faster rather than added to a development sprint further down the line.