Businesses are longing to realize the dream of a connected enterprise leaning on hybrid integration platforms powered by APIs (Application Programming Interfaces). The aim is to win customer loyalty, build a robust partner ecosystem, reinvent business architecture, and discover new revenue streams.
According to "The State of API Integration Report,"over 55% of the respondents believe API integration is critical to their business strategy.
Although hybrid integration is not a complicated matter to pursue, it demands a better understanding of the different integration scenarios. With the continually growing challenges, it becomes paramount for businesses to reassess their needs and re-evaluate their organization’s maturity level to churn out maximum benefits from the hybrid integration initiative.
2. Data Integration in the Cloud
Multi-Application Integration in the Cloud
Software-as-a-Service (SaaS) Integration
B2B Integration in the Cloud
Legacy Integration in the Cloud
TABLE OF CONTENTS
WHITEPAPER | Hybrid Integration
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The Solution:
Hybrid Integration Platform
The Top 5 Hybrid Integration Scenarios
API is the Common Language That Enables Hybrid Integration
Problem Statement:
Complexity in Integration and Need for a “Pervasive Approach”
Conclusion:
Why HIPs Are Key to Shaping the Future of IT?
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3. The co-existence of traditional legacy systems, modern cloud service
platforms, and the dynamic business as well as technology requirements, has
made hybrid integration the need of the hour. Understanding hybrid integration
is not rocket science. Set forth plainly, it is the methodology that spares
systems and making them securely connected, reliable, and technology
efficient. Year on year, businesses make innumerable strategic investments on
their IT ecosystem and hybrid integration is one of the ways to generate
consistent outcomes from such investments now and in the future.
03
Problem Statement:
Complexity in Integration and Need for a
“Pervasive Approach”
Hybrid Integration:
Problem Statement
Businesses usually have multiple endpoints to connect, engage, and integrate
with, and each of the endpoints exists in separate environments. They may
have many channel partners, data sources, business process networks,
applications (both on-premise and in the cloud), third-party vendors, systems,
technologies, and even subsidiaries and to communicate with all such
endpoints, businesses are bound to adopt separate integration methods and
scenarios, which lack a common language, style, and harmonization. Thus, it
creates a significantly extensive checklist.
On the other hand, at a time when data has turned out to be the colossus of the
digitally driven world, the use of smart devices continues to grow exponentially.
The nascent BYOD (Bring Your Own Device) culture has become a new norm ,
and when businesses worldwide — irrespective of their size — yearn to expand
their IT landscape, catering to the growing integration demand, becomes
difficult. The following are some of the other reasons that demand an
integration environment, which is consolidated and offers a single point of
control, ensuring complete security and tangible outcomes.
WHITEPAPER | Hybrid Integration
4. 04
Digital is transforming global businesses at breakneck speed. At a time when
many in the business community appear to have taken their first step in digital
transformation, the need for these initial steps only seems to be increasing.
Therefore, more than building individual capabilities, businesses now need to
consider a multi-wheeled vehicle to seamlessly transfer data, technologies,
enterprise applications, and other IT (Information Technology) infrastructure
between on-premises and cloud platforms and take advantage of the business
benefits on offer by this connected ecosystem.
Enterprise architecture is undergoing a paradigm shift
Business IT landscape is constantly changing
Deciphering the need to analyze organizational maturity level
Diverse IT Topologies
Data is unstructured and drives little business outcome
Users demand real-time data access
Lack of analytical and predictive ability
Inability to develop robust API and integration strategies
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WHITEPAPER | Hybrid Integration
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04
5. 05
INTEGRATION NEEDS ARE COMPLEX AND A PERVASIVE
APPROACH IS REQUIRED
Business
Process
Networks
On-Premises Applications
and Data Sources
Business
Partners
Subsidaries
SaaS Cloud Services
“Things”
Mobile
Apps
Social Networks
EDW
MDM
Mart
Dynamic and Pervasive integration approach provides
COMPETITIVE EDGE
Legacy integration methodologies and technologies are not enough anymore
IMPLICATIONS
WHITEPAPER | Hybrid Integration
A typical business or enterprise that is digital or turning digital — aiming to
transform — has “integration” needs that are “disparate” as well as
“complex.” Such a digital business requires a “pervasive approach” to
address the different and complex integration needs. Disruptive technology
forces including IoT, Big Data, Analytics, and Cloud — with their
ever-evolving impact on businesses — underpin the need for an integration
strategy that enables digital businesses to build a multi-wheeled vehicle.
6. 06
WHITEPAPER | Hybrid Integration
Many enterprises have multiple business process-specific core systems that
support various other compatible IT components and which can be hosted
differently, be it shared single cloud, multiple clouds, or be it an on-premise
physical server. Although it is technically possible to have one single platform
to integrate all the different IT components, it is neither a realistic nor an
efficient approach for businesses to cover integration intricacies. New age
tools enabling iPaaS, SaaS models may, however, support these needs, but
they might require super niche specialized integration skills. Hence, it becomes
a necessity to adopt a pervasive integration approach, which is not only
multi-dimensional but also scalable and efficient enough to cater to the future
business needs that are yet to be deciphered.
Thus, hybrid (as the environment) and integration (as the need) have become
pervasive. As the demand for agility, systems engagement, flawless
communication, and cloud integration continues to grow steadily and at an
increasing velocity, hybrid integration is summarily the most potent weapon to
accelerate innovation. Considering the contemporary business challenges, the
hybrid integration strategy empowers companies with the tools to gain a
competitive business advantage over their competitors and maintain the
position over time.
If reports are to be believed, the market size for hybrid cloud market is
expected to reach $128.01 billion by the end of 2025. As more and more
businesses rise to embrace digital business models, the demand for hybrid
integration is gaining traction every day. It is enabling businesses of all-size to
build a borderless system that facilitates secure and productive engagement
and interaction of software, hardware, users, data, and more to engineer and
re-engineer products and services with the utmost flexibility, scalability, and agility.
Transcending beyond the boundaries of traditional ERP (Enterprise Resource
Planning) models and capabilities of services and technologies such as the
cloud and IoT (Internet of Things), hybrid integration helps businesses in
building future-ready solutions.
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7. WHITEPAPER | Hybrid Integration
Personas Integration Domains
A Hybrid Integration Platform (HIP) is the perfect common ground to integrate
legacy on-premise systems with the business assets in the cloud. HIPs are the
most powerful tools that help you level the playing field and enter the
competition with aplomb. The global Hybrid Integration Platform market value
is expected to grow at “a CAGR of 12%2
” between 2019 to 2024, and it is also
being predicted that by 2022, the market value oh HIPs would reach $33.60
Billion3
. This growth indicates the need for the platform as it plays a crucial role
in reducing the latency in operations and delivering the utmost satisfaction to
customers, besides having another set of benefits on the offing. Put holistically,
Hybrid Integration Platform can help:
The Solution:
Hybrid Integration Platform
A Hybrid integration platform or strategy supports the seamless integration of
data, systems, and more between on-premises (i.e., legacy systems,
databases, warehouses, applications) and the cloud (SaaS/PaaS/IaaS, B2B,
B2C, big data, mobility) platforms. Hybrid cloud integration is what efficiently
untangles all the complexities. When you choose a hybrid integration platform,
it offers four-dimension pillars that together build a connected ecosystem while
enabling businesses to transform into a digital enterprise. The following are the
four dimensions of a hybrid integration platform
• Ensure Regulatory Compliance
• Improve Security & Privacy
• Foster Innovation
• Optimize Investments
Endpoints Deployment Models
Application to application
Process to process
Data to data
Business to business
Mobile
Cloud
On-premises
Things
On-Premises
Cloud
Hybrid
Embedded
Integration specialists
Ad-hoc integrators
Citizen integrators
Digital integrators
07
The global Hybrid
Integration Platform
market value is
expected to grow at
“a CAGR of 12% ”
between 2019 to
2024, and it is also
being predicted that
by 2022, the market
value oh HIPs would
reach $33.60 Billion3
.
8. https://www.globenewswire.com/news-release/2019/12/23/1964014/0/en/Global-Hybrid-Integration-Platform-
Market-to-2024-Increasing-Adoption-of-BYOD-Hybrid-Cloud.html
2
3
When we talk about the deployment capabilities of a hybrid integration
platform, it must be capable of supporting a vast and diverse integration
landscape, i.e., integration in the same cloud, between different clouds,
between different integration runtimes and so on. From offering centralized
control, remote monitoring to business process and function managing in a
distributed environment, hybrid integration platforms are a one-stop solution to
eliminate the fragmented business environment and to build a truly connected
enterprise. The following are some of the common benefits of hybrid
integration.
Bridge the gap between the legacy systems and the cloud
Drive new business models
Leverage new systems to accelerate innovation
Establish a secure data gateway
Ensure complete regulatory compliance
Enable the benefits of API-monetization
Implement pay-as-you-go pricing models
A Hybrid Integration Platform is considerably the best way for organizations
to free themselves from the consistently rising business costs. Businesses
can keep themselves from buying and maintaining hardware and lean on
hybrid integration platforms to virtually build infrastructure as and when they
need it. They would no more need a plethora of integration tools and instead
take full advantage of the emerging and trending disruptive technology forces
to build result-oriented strategies and leapfrog the competition.
https://www.mordorintelligence.com/industry-reports/hybrid-cloud-market
https://www.marketsandmarkets.com/Market-Reports/hybrid-integration-platform-market-222940626.html
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WHITEPAPER | Hybrid Integration
9. According to a report by Gartner, 50% of the time and costs involved in digital
transformation — during 2020 — will be spent on integration. This makes it
clear that integration will continue to be the key to gaining competitive
advantages in the years to come; however there’s a catch. When it comes to
integration, there are different scenarios, which businesses should learn.
Understanding the various integration scenarios and their immediate impact
will undoubtedly help companies select a hybrid integration platform that
would harmonize with their organizational maturity level and their strategic
roadmap. Although hybrid integration scenarios can vary from case to case,
the following are the 5 key scenarios that are worth considering.
The Top
Hybrid Integration
Scenarios
5
WHITEPAPER | Hybrid Integration
09
10. Data Integration in the Cloud
Right before we discuss data integration in the cloud, a statement made by
Forrester — in one of its articles — is worth mentioning, i.e., “Your business is
only as fast as your data.” This statement says it all. When we talk about data
integration in the cloud, it simply means how well is your data synchronized and
how well you are prepared to make data-driven decisions to stay ahead of the
dynamically changing and volatile market demands. Irrespective of the
platform — where the data is saved, on-premises, or in the cloud — users must
have instant access to the data in real-time, which is also one of a prominent
reason that is encouraging businesses to leverage Data-as-a-Service (DaaS).
Hybrid data integration is about storing, structuring, managing, processing
data in the cloud, across databases, data warehouses, data on on-premises,
SaaS (Software-as-a-Service) applications, and data lakes. A broad range of
connectors is used to keep the data across platforms connected and the entire
data analyzed to help extract actionable insights. Data integration in the cloud
is also an efficient approach to help comply with regulatory standards such as
GDPR (General Data Protection Regulation) and HIPPA (Health Insurance
Portability and Accountability Act). Data cloud integration can help businesses
successfully perform mass data ingestion and synchronization. In short, it is
about gathering, moving, and combining data at unprecedented speed to drive
informed decisions and attain tangible business outcomes.
Offering data integration in the cloud, advanced HIPs enable to structure data,
reduce data redundancy, capture data change, and supports partitioning and
error-handling. The following are some of the benefits of data integration in the
cloud:
1.
WHITEPAPER | Hybrid Integration
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Store and process data in real-time
Develop an intelligent, agile operation
Create a data-based smart partner ecosystem
Make workloads less prone to failure or disruption
Build predictive business capabilities
Achieve greater flexibility and enhanced transparency
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11. WHITEPAPER | Hybrid Integration
Reduced dependency on a single cloud services provider
Increased productivity and efficiency
Improved flexibility
Dynamic pricing
Decreased failover
Rapid disaster recovery
Multi-Cloud Application Integration
Multi-cloud application integration is quite often, and incorrectly, understood to
be hybrid cloud integration. It rather deals in harmonizing the integration
between multiple applications providing cloud services, whereas a hybrid cloud
environment lives both on-premises and in the cloud platforms.
Multi-cloud application integration is a strategy where iPaaS (Integration
Platform-as-a-Service) enables organizations to connect and share data with
different public and private cloud services providers, leveraging API gateways.
Businesses can choose to subscribe to the services of the cloud services
providers based on their usage and pay only for the services they use.
According to a recent survey done by Gartner, 81% of the businesses using
cloud services have subscribed to one or more providers.
Mapping to your business needs, hybrid integration platforms allow you to
pursue multi-cloud integrations and thus seek the best cloud services and even
avoid vendor lock-in. The following are some other benefits of multi-cloud
integration.
11
2.
11
12. In a SaaS integration approach, the service providers offer
Software-as-a-Service (i.e., cloud service providers retain, manage, and deliver
the services). SaaS integration gained quick traction because it helps
companies reduce infrastructure costs, to a large extent, while enabling data
accessible anytime, anywhere. The demand for subscription-based software
services is continuously mounting, Gartner predicts that the market value for
SaaS will reach $116 billion by the end of 2020, $143.7 billion by 2022, and also
that it will be the largest market segment.
SaaS is considered user-friendly for businesses as it drives automated
integration, supports rapid deployment, and offers easy-to-use integration
architecture. Benefits of a SaaS integration include:
WHITEPAPER | Hybrid Integration
Allows real-time data exchange with partners and suppliers using APIs
Supports instant diagnosis and troubleshooting of issues
Helps in minimizing risk and reduce errors during integration
Makes data readily available whenever, wherever required
Keeps data synchronized across the cloud and on-premise systems
Offers enhance visibility and control over integration
4
Software-as-a-Service (SaaS) Integration
SaaS (Software-as-a-Service) integration has indeed triggered a
transformation. It supports a free flow of data through applications, systems
and also bridges the gap between on-premises and cloud. When considering a
SaaS integration scenario, businesses should choose a hybrid integration
platform that offers predefined integration templates, drag-and-drop design
models, and out-of-the-box connectors to connect with data and applications
in a hybrid IT environment.
3.
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13. WHITEPAPER | Hybrid Integration
Sharing of large data files faster
Encrypt and validate data instantly
Enable real-time data visualization
Improve supply chain and boost efficiency
Enhance scalability, flexibility, and functionality
Expand global business outreach
B2B Integration in the Cloud
Building a B2B integration strategy is an efficient approach to make future
enhancements and innovation as it leverages APIs to facilitate a collaborative
arrangement between suppliers, customers, and other trading partners.
Offering B2B integration, HIPs automate key business processes and allows
data, systems, and applications of one business to interact and engage with
others.
B2B integration simply means inter-enterprise integration, where information
across platforms are digitized and passed in real-time through the trading
ecosystem of the enterprises participating via a single gateway. Be it reducing
the time-to-market, remodeling revenue channels, or be it boosting business
efficiency, B2B integration is about building self-service integration that
allows organizations to seamlessly access and connect with the APIs of other
businesses quickly and reliably.
Businesses usually use many different technologies to exchange and share
messages and data with their trading partners. HIPs offering B2B integration
enable a unified approach of exchanging the data electronically. Benefits of
B2B integration include:
4.
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14. WHITEPAPER | Hybrid Integration
Leverage APIs to bridge the network divide
Minimize risks and costs with respect to modernization
Avoid vendor lock-in
Improve business productivity
Build new revenue models
Build efficient communication gateways
Legacy Integration in the Cloud
Legacy integration is about modernizing the existing IT Systems that have
become obsolete and are neither helping in outperforming competitors nor
support integration with new web and cloud-based services. As more and more
businesses are looking to embrace digital, legacy integration demand is
expected to surge in the coming future.
Offering legacy integration on services hybrid integration platforms allow
businesses to extend their systems, databases, application, more on-premise
to the cloud-based systems. HIPs provide a catalog of cloud connectors that
support instant connectivity via APIs. HIPs can significantly enable companies
to save costs and time by allowing them to exploit digital-age technologies and
data to drive strategies as well as outcomes. According to an estimate, 75% of
the enterprise budget in North America and Europe is spent on maintaining the
legacy systems. Integrating legacy systems with the cloud can undoubtedly
help them reduce these costs.
Legacy integration is a necessity to expand and grow in a digital-first business
environment as rip and replace can never be a viable solution. Benefits of
legacy integration include:
5.
14
15. API is the Common Language
That Enables Hybrid Integration
If hybrid integration is about building cohesive strategies, then API is the
cohesive style. For hybrid integration, it is essential to understand that API is
the one universal language that makes integration happen successfully and
with the utmost security in all the above-discussed scenarios.
API plays a key role in making integration, both flexible as well as possible. An
advanced hybrid integration platform allows adapters to efficiently leverage the
capabilities of API, a middleware agent efficiently. Right from system
re-engineering, rapid SaaS integration, SaaS throttling to data synchronization,
API-monetization, and improving the performance of UX/UI (User
Experience/User Interfaces), and more, hybrid integration leverage API
capabilities to extract business value from all the different endpoints, personas,
integration domains, as well as, deployment models.
APIs can undeniably be said to be an innovation key that open-up the
opportunity door for companies. It facilitates communication between
applications, microservices, user interfaces, cloud, and more. APIs enable
businesses to share their enterprise-wide data with third parties without
compromising the security aspects of the data.
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16. WHITEPAPER | Hybrid Integration
14
Speed to Innovation
Azure/AWS/
Multi cloud
Subscription Costs
API
Management
IOT
Management
Analytics
Development
Security and consistency
Data Fabric
Optimization using latest
Technology
Operations system
3rd Party/Vendor
systems
Partners
Customers
API
GW
AI
Analytics
SaaS
Applications
Data
Lake
Big
Data
Legacy
Modernization
16
API-based Hybrid Integration
Reference Architecture
Unlike hybrid integration platforms that bring together physical architecture,
API offers a logical integration architecture that is supposed to normalize the
complete hybrid integration landscape. It is a viable alternative to the traditional
point-to-point integration, which had no middleware agent in between and
which disrupted the whole ecosystem every time a change is to be integrated.
B2B
APIs
Microservice
APIs
Cloud
APIs
DaaS
APIs
API
GW
API
GW
IOT
RPA
APIMASHUPS
Micro
GW
API
GW
API
GW
Analytics
APIs
Moderni-
zation
APIs
17. WHITEPAPER | Hybrid Integration
Hybrid integration enables businesses to make a perfect balance between
applications, data sources, systems, both in on-premise and multi-cloud
environments. The digitally interwoven business world force businesses —
especially large enterprises — to build API-first as well as multi-cloud
management strategies
Let’s revisit some of the common benefits of an advanced hybrid integration
platform:
Conclusion:
Why HIPs Are Key to Shaping the
Future of IT?
Connect and share real-time
data with trading partners
Build the ability to integrate anything,
anywhere, and anytime
Put an end to the fragmented
data environment
Achieve greater
visibility across platforms
Collaborate with internal
and external stakeholders
Improve data security
and governance
Maximize control and
communication efficiency
Comply with
regulatory standards
Reduce IT
expenditure
advanced
hybrid integration
platform
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18. WHITEPAPER | Hybrid Integration
Hybrid integration is “a cohesive set of integration software (middleware
products)” and technologies that facilitate API lifecycle management, simplify
data and application integration, as well as, reduce costs with respect to the
development, testing, deployment, and maintenance of software applications,
systems, and data interfaces.
Hybrid integration has too soon traveled from nice-to-have to must-have points
and offers viable solutions that are required to efficiently operate and achieve
mission-critical goals in the contemporary digital-first economy. However, there
are gaps and challenges, which are classified based on how well companies
analyze their organizational maturity level, understand their integration needs,
and select a robust hybrid integration platform after having a perusal of the
various integration scenarios mentioned-above.
An advanced HIP is not just limited to providing iPaaS capabilities, which mainly
deals with cloud-based applications integration; it rather expands the
integration horizon. Strategies — with respect to digital integration — should
never be made on the fly. It needs thorough consideration and efficient
collaboration with the right digital integration partners. Gartner informs that by
2022, over 60% of businesses will use cloud-managed service offerings
provided by external service providers. With the fact, the integration is the fuel
that triggers growth and success in the digital and technology-driven economy,
businesses are now proactively partnering with hybrid integration platform
services providers. The aim is to get an edge over DIY (Do It Yourself)
integration, flatten the HIP learning curve, and reap the benefits of an
incremental implementation approach.
Kellton Tech is a ‘Born Digital’ technology consulting and services company founded on the
belief of ‘Infinite Possibilities with Technology.’ The company has helped startups to Fortune
500 clients build disruptive Digital Transformation solutions and leverage technology as a
competitive differentiator for their businesses. Driven by deep domain knowledge and
technology expertise, Kellton Tech adds value to client relationships by being as a Trusted
Partner. A rapidly growing company, Kellton Tech has been placed four times on the Deloitte
Technology Fast 50 India list and has been recognized by Forbes Asia as one among the Top
200 companies in 'Best under a Billion' 2017 List. With operations across the US, Europe,
India, and Asia-Pacific, we are consistently on the lookout for the next competitive advan-
tage. Please visit our website www.kelltontech.com.
North America: +1.844.469.8900
Asia: +91.124.469.8900
Europe: +353.76.604.2716
General Inquiries:
ask@kelltontech.com
by 2022, over 60% of
businesses will use
cloud-managed
service offerings
provided by external
service providers 4
https://www.gartner.com/en/newsroom/press-releases/2019-11-13-gartner-forecasts-worldwide-public-cloud-
revenue-to-grow-17-percent-in-2020
4