Enterprise platforms to support integration requirements In the enterprise iPaaS market, organizations are adopting a semi outsourced approach to integration, whereby responsibility for integration projects is maintained in-house (or delegated to a trusted system integrator). The implementation, provisioning, operation, monitoring, management and maintenance of the enterprise-grade integration platform are instead delegated to an external service provider delivering the platform as a cloud service. An integration platform in the form of a cloud service that targets enterprise requirements and use cases is indeed an enterprise iPaaS. Gartner estimates that the enterprise iPaaS market expanded notably in 2014, approaching a quarter of a billion dollars and growing over 60% in terms of providers' subscription revenue. However, some providers far exceeded this growth and, in some cases, registered a triple-digit growth rate, thus notably winning market share. However, Gartner estimates that several enterprise iPaaS providers generate less than $10 million from their offerings; some collect higher amounts, but only one exceeds $50 million. iPaas Market Trends As per Gartner iPaaS market is poised to dramatically grow over the next five years because of several factors, including:
The explosion of CSI, MAI, API and IoT requirements
The emergence of the adaptive integration approach and citizen integrators — for whom traditional integration platforms are generally unsuitable
Adoption by SMBs that so far have often been unwilling to embrace integration middleware because of its high cost and complexity, but are now interested in iPaaS offerings due to their low entry cost and ease of use
Entry in the market of megavendors and influential software players that can deploy powerful marketing and sales machines to sustain their iPaaS ambitions
This expected growth and increasingly strategic relevance of iPaaS have attracted investments from startup companies, megavendors, established on-premises middleware players, providers of other forms of platform as a service (PaaS), and SaaS players. All the vendors are eager to get their fair share of this new, fast-growing market and, most importantly, to establish control in user organizations' crucially strategic next-generation integration infrastructure. Emergence of hybrid integration platforms As per Gartner report during the next three to five years, this tension will gradually be resolved, because of the emergence of hybrid integration platforms and bimodal approaches that will:
Combine iPaaS and traditional integration middleware characteristics Enable multiple deployment models Empower citizen integrator, adaptive and traditional approaches Support a wide range of business requirements
Fast growth of the enterprise iPaaS market, combined with the rapidly expanding penetration of public cloud services in large enterprises, not only appeals to newcomers, but also attracts investments from the traditional integration middleware powerhouses. These vendors see their entry in the enterprise iPaaS market as a way to:
Address SMBs (a segment most of them have neglected)
Cross-sell to their established clientele
Counter the penetration of enterprise iPaaS pure-play providers in large organizations, especially at the LOB/departmental level
Revamp and reinvigorate their integration platform businesses, still primarily based on previous-generation on-premises integration technology and currently characterized by slow (if not negative) growth rates
One of the biggest barriers to effective cloud adoption is connecting, synchronizing, and relating data, applications, and processes between cloud and on-premise systems—more than 64 percent of companies indicated they face this challenge today. The added complexity makes it difficult for you to effectively share and use business data throughout your organization. According to Senior Analyst, “enterprises need to undertake integration infrastructure modernization to effectively exploit the quartet of digitalization, mobility, cloud, and IoT for driving business growth. There will be less inertia to a shift toward agile approaches to integration and/or cloud-based integration services, and this will translate into a growing market opportunity for both established and specialized integration vendors.” Source: http://bit.ly/1IVDPRN