Ovum: iPaaS not enterprise 'silver bullet' yet

More companies looking to integrate their cloud-based software into existing IT environments but integration-platform-as-a-service not mature enough to meet their needs, research firm notes.

Integration-platform-as-a-service (iPaaS) is not yet mature enough to fulfill its touted benefits for businesses looking to integrate software-as-a-service (SaaS) products into its existing IT environments, but it is expected to grow due to the increasing complexity of enterprise application portfolios and tight budgets, Ovum states.

In a statement released Thursday, the research firm noted that while the value propositiion of iPaaS is attractive, such offerings are not at the point where they can be used for a wide range of complex integration requirements.

"iPaaS is not yet the 'silver bullet' for SaaS integration as touted by other analyst firms, and only through careful planning will organizations achieve seamless integration," it noted.

Another research firm, Gartner, had defined iPaaS as one that enables implementation of application, process, service, and data integration and the relevant governance, in the cloud.

Ovum forecasted that global spend on integration solutions will grow at a compound annual growth rate (CAGR) of 8.3 percent between 2011 and 2016 to reach US$14.4 billion in four years' time. Of this expenditure, a significant part will be for SaaS integration products driven by the increasing complexity of enterprise application portfolios and tight IT budgets. 

It added that while traditional integration approaches, including service-oriented architecture (SoA), custom code development, and integration outsourcing, are "ill-suited" to the needs of complex integration requirements, cloud-based integration approaches are not the perfect solution either.

"While cloud-based integration solutions do align well and provide many sought-after benefits, the solutions are not yet completely mature and offer less functionality than what is provided by traditional integration solutions," Saurabh Sharma, senior analyst in Ovum's software team, noted.

"Only a well-planned approach will ensure that SaaS integration projects are completed on time, within the allocated IT budgets and, more importantly, deliver the desired end-to-end functionality," Sharma added.