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Making the Case for Integration Platform as a Service (iPaaS)

Running your business likely involves a triple-digit number of applications, a double-digit number of unique data sources, and a complex mix of deployment models.

An iPaaS Integrated platform as a Service is designed to address these challenges, by providing the technical means to manage APIs, orchestrate services, and process events. Research shows that cloud-based solutions – such as an integration platform-as-a-service – are currently favored over on-premises solutions, by a factor of nearly 3 to 1.

Aberdeen research fellow Derek Brink is revealing new findings on how iPaaS is changing data integration management for some of the most successful companies.

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Making the Case for Integration Platform as a Service (iPaaS)

  1. 1. 1 © 2019 Aberdeen | All Rights Reserved Making the Case for Integration Platform as a Service Derek E. Brink, CISSP Vice President and Research Fellow, Information Security and IT GRC Derek.Brink@aberdeen.com | www.linkedin.com/in/derekbrink August 2019
  2. 2. Executive Summary Running your enterprise likely involves a triple-digit number of applications, a double-digit number of unique data sources, a complex mix of deployment types, and a diverse mix of integration mechanisms. To keep up with enterprise expectations for growth and speed, your integration capabilities must become more efficient — which calls for moving away from the use of tactical tools to adopt a more proactive, platform-oriented approach. Aberdeen’s research shows that buyer interest in advanced integration capabilities strongly favors integration platform as a service.
  3. 3. Presentation Overview: Three Topics for Discussion 1. Business and Technical Context • Powerful building blocks, practical challenges 2. Making a Technical Case for Integration • From tactical tools, to proactive platforms 3. Deployment Trends • Strong movement by buyers towards integration platform as-a-service
  4. 4. Business and Technical Context Powerful Building Blocks, Practical Challenges
  5. 5. The Current Mix of Enterprise Applications, Data, Deployment Models, and Integration Mechanisms Represents Both Powerful Building Blocks and Practical Challenges • Running your enterprise likely involves • A triple-digit number of applications • A double-digit number of unique data sources • An increasingly complex mix of deployment types • I.e., on-premises, cloud-based, mobile, and connected devices (IoT) • A diverse mix of integration mechanisms • I.e., from ftp, custom scripts; to MFT, EDI; to APIs
  6. 6. Running Your Enterprise Likely Involves Integration of a Triple-Digit Number of Applications, and a Double-Digit Number of Unique Data Sources Source: Aberdeen, August 2019 0% 50% 100% 0 10 20 30 40 50 60 70 0 100 200 300 400 500 ApplicationExceedanceCurve (i.e.,Y%likelytoexceedXapplications) NumberofRespondents(N=263) Total Number of Enterprise Applications Histogram (Frequency) Exceedance Curve (Cum. %) Median ~ 120 applications, 20 unique data sources "Long Tail" > 1,000 applications, > 50 unique data sources
  7. 7. Running Your Enterprise Likely Involves Integration of a Double-Digit Number of Unique Data Sources, From an Increasingly Complex Mix of Deployment Types Source: Aberdeen, Aubust 2019 64% 67% 39% 30% 0 50 100 150 200 On-premises applications Cloud-based applications Mobile applications Connected devices (IoT) NumberofRespondents(N=263) Application Deployment Types Respondents report having a median of 20 unique data sources, from an increasingly complex mix of deployment types: from traditional on-premises, to also include cloud-based, mobile, and IoT
  8. 8. To Keep Up With Growth and Speed, Integration Must Become More Efficient • 95% of all respondents report that the total volume of enterprise data is growing year-over-year • 3 out of 4 (74%) respondents describe their current approach to integration as batch-oriented, ad hoc, or lacking any formal process whatsoever 26% 40% 14% 20% Real-time / continuous Primarily batch- oriented Manual, ad hocNo formal process or technology Current Approach to Integration % of All Respondents (N = 309) Source: Aberdeen, August 2019
  9. 9. Leading Drivers for Current Investments in Advanced Integration Capabilities • For business users, integration capabilities represent powerful building blocks for enabling strategic initiatives, including • Operating efficiencies • Productivity • Collaboration • Digital transformation • For technical staff, integration also represents practical challenges, especially • Speed and cost of integration • Security, privacy, and regulatory compliance Source: Aberdeen, August 2019 Taken together, these pressures make up the leading drivers for current investments in more advanced integration capabilities, as seen in Aberdeen’s benchmark research carrots sticksspeed
  10. 10. Making a Technical Case for Integration From Tactical Tools, to Proactive Platforms
  11. 11. A Large and Dynamic Portfolio of Enterprise Applications, Data Sources, Deployment Types, and Integration Mechanisms Drives Exponential Growth in the Total Number of Potential Integrations • For the modern enterprise, a large and dynamic portfolio of applications, data sources, deployment types, and integration mechanisms results in an overwhelmingly large number of potential integrations • Doing the math: between 1,500 and 160,000, with a median of 26,000 • This is simply too numerous and too complex for batch-oriented, ad hoc, and informal integration processes — particularly given expectations for speed and costSource: Aberdeen, August 2019 1,500 26,000 160,000 0% 100% 0 40,000 80,000 120,000 160,000 IntegrationsExceedanceCurve (Y%likelytoexceedXintegrations) Total # of Potential Integrations High = 10% likely to exceed Median = 50% likely to exceed Low = 90% likely to exceed
  12. 12. Under the Status Quo, The Percentage of Total Project Time Allocated for Integration Ranges Between 10% to 70%, With a Median of About 25% Source: Aberdeen, August 2019 0% 50% 100% 0 10 20 30 40 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% IntegrationExceedanceCurve (i.e.,Y%likelyforprojecttimeallocated tointegrationtoexceedX%) NumberofRespondents(N=263) % of Total Project Time Allocated for Integration Histogram (Frequency) Exceedance Curve (Cum. %) Median: ~ 25% "Long Tail": 10% likely to exceed 70% Respondents in Aberdeen’s study identified integration issues as the leading cause of late project delivery
  13. 13. Currently, Key Elements of Integration are Viewed as Immature Key Elements of Integration Level 1 Poorly- defined Consistently reactive Level 2 Defined on an ad hoc, project-by- project basis Mostly reactive Level 3 Defined Mostly proactive Level 4 Defined and measured Consistently proactive Level 5 Defined, measured, continuous improvement Consistently proactive Current Maturity Level Net Maturity Index (% Level 4 / 5) – (% Level 1 / 2) ------------------- (% all) Integrate data from multiple sources 10.4% 22.0% 38.5% 16.5% 12.6% -3.3% Syndicate data between any two application endpoints 8.5% 15.9% 36.3% 20.3% 19.0% 14.9% N = 364 Generally, +50% and above is considered an indication of strong maturity; -50% and below is an indication of strong immaturity Source: Aberdeen, August 2019 Inspired by the well-known NPS, a Net Maturity Index ranges from +100% (everyone is mature) to -100% (everyone is immature)
  14. 14. That Was Then … This Is Now: Why New Thinking is Needed • Five years ago, enterprise approaches to integrating enterprise applications and data were: • Commonly ad hoc and highly fragmented • Increasingly driven by users, out of their fundamental need to keep up with the accelerating pace of accomplishing their day-to-day activities • At the same time, IT and Security staff were contending with an additional set of drivers: • Motivation to replace a hodge-podge of digital do-it-yourself approaches (e.g., ftp, custom scripts, email attachments, and a growing host of “shadow IT” mechanisms) with one or more standardized, enterprise-supported solutions (e.g., file sync / share, MFT, EDI) • Growing concerns over security, privacy, reliability, and regulatory compliance • Desire to improve visibility, control, and governance over integration
  15. 15. That Was Then … This Is Now: Why New Thinking is Needed • Today, Aberdeen’s research shows that previous concerns are amplified by new drivers and new use cases • Significantly greater volume and complexity: applications, data sources, deployment models, users, endpoints • Strategic enterprise initiatives (e.g., digital transformation, employee collaboration) are redesigning traditional business processes and workflows — shouldn’t they also be redesigning the mechanisms for integration? • Concerns about security, privacy, and compliance continue, especially when working with data that is valuable (e.g., IP, CI) or regulated (e.g., PII, PHI, cardholder data) • Increasing need to choreograph services and data movements through multiple systems; increasing use of APIs
  16. 16. Tools vs. Platforms In making a distinction between “tools” and “platforms” Aberdeen is simply reflecting a basic pattern of evolution, which can be seen in several solution categories: • From a mixed bag of lower-level tools for specialized technical staff • To enterprise self-integration of multiple point solutions • To vendor-integration within proprietary product suites • To vendor / ecosystem-integration of platforms for harnessing applications and data across all modes of human / system interactions Source: Aberdeen, August 2019 Moving Forward: From Tactical Tools, to Proactive Platforms • As the requirements for integration evolve and capabilities continue to mature, the top performers are going beyond the use of tactical tools for merely moving data from point to point, to adopt a more proactive, platform-oriented approach • A platform approach to integration helps enterprises to realize more business value from its applications and data: • From a wide range of data sources • Into a wide variety of business-critical processes and workflows, using a variety of integration mechanisms • In support of a diverse population of users throughout the extended enterprise (including employees, third parties, business partners, and customers)
  17. 17. Deployment Trends Strong Movement by Buyers Towards Integration Platform as a Service
  18. 18. Buyer Interest Strongly Favors Integration Platform as a Service • When asked about the advanced integration solutions that organizations plan to use in place of their current capabilities, interest in cloud- based delivery models — i.e., Integration Platform as a Service — outnumbered interest in on-premises solutions by a factor of nearly 3 to 1 Source: Aberdeen, August 2019
  19. 19. Leading Reasons for Selecting Integration Platform as a Service: Improve Speed, Reduce Total Cost Multiple responses accepted; does not add to 100% Source: Aberdeen, August 2019 44% 32% 30% 29% 27% 0% 10% 20% 30% 40% 50% Improve speed of integration Reduce total cost of integration Improve ability to address security, privacy, and compliance Preference for subscription cost model Common approach for all integration projects Percentage of All Respondents (N = 263) ReasonsforSelecting IntegrationPlatformas-a-Service
  20. 20. Aberdeen Research: Buyers Have Highly Positive Perceptions of Integration Platform as a Service Solutions, in Multiple Dimensions Net Perception Index ranges from +100% (everyone perceives negatively) to -100% (everyone perceives positively). Generally, > +50% is viewed as significantly positive. Source: Aberdeen, August 2019 58% 55% 58% 64% 64% 62% 63% 65% -100% -50% 0% 50% 100% Ease of onboarding Breadth of integration mechanisms supported Data services available (e. g. data cleansing) Uptime of data integration connections Reliability of data from integration connections Quality of data (e.g., from extract, transform, load) Quality of technical services staff Quality of customer support staff Net Perception Index +100% = All Perceive Positively -100% = All Perceive Negatively Significantly Positive Perceptions Significantly Negative Perceptions
  21. 21. Summary and Key Takeaways Context: Powerful Building Blocks, Practical Challenges Technical Case: From Tactical Tools, to Proactive Platforms Deployment Trends: Strong Movement Towards Integration Platform as a Service Running your enterprise likely involves a triple-digit number of applications, a double-digit number of unique data sources, a complex mix of deployment types, and a diverse mix of integration mechanisms. To keep up with enterprise expectations for growth and speed, your integration capabilities must become more efficient. As the requirements for integration evolve and capabilities continue to mature, the top performers are going beyond the use of tactical tools for merely moving data from point to point, to adopt a more proactive, platform-oriented approach. A platform approach to integration helps enterprises to realize more business value from its applications and data. Aberdeen’s research shows that buyer interest in advanced integration capabilities strongly favors integration platform as a service, primarily to increase the speed and reduce the total cost of integration. Buyers have highly positive perceptions of integration platform as a service solutions, in multiple dimensions. Source: Aberdeen, August 2019

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