Ovum Decision Matrix: Selecting an Integration PaaS (iPaas) Solution 2015-2016 Ovum Decision Matrix: Selecting an Integration PaaS (iPaaS) Solution, 2015-2016 vendors, while major vendors strengthen their market position. Ovum forecasts rapid growth for global iPaaS market, which is expected to cross the $900m mark in 2019. Ovum envisages the future of iPaaS as a much broader “Enterprise Integration-as-a-Service” phenomenon. This implies an evolution toward delivery of cohesive and flexible integration capabilities via the cloud for meeting application, B2B, and data integration, mobile enablement, API management, Internet of Things (IoT) integration, and process orchestration requirements of large enterprises. Key findings iPaaS continues to expand beyond cloud service integration, and is increasingly being used for hybrid integration scenarios involving a mix of on-premise, SaaS, B2B, and/or mobile application integration. Integration vendors with a rich “integration-as-a-service” heritage have evolved into leading iPaaS vendors. With the increasing need to “do more with less”, ICCs/integration COEs are embracing agile approaches to integration. LOB-led iPaaS adoption is quite common. The role of iPaaS in enterprise integration continues to expand, as evidenced by the increase in average subscription/deal size for relatively mature iPaaS solutions. The competition in the iPaaS vendor landscape continues to increase, with several major middleware vendors introducing/announcing their iPaaS solutions over the last six to nine months. Major iPaaS vendors have enhanced the overall value proposition of their solutions by offering low-latency processing, data management, and API management capabilities on top of iPaaS. 2015 will see major iPaaS vendors using more aggressive sales and marketing strategies and operations to expand their reach and increase market share. The highly competitive and rapidly evolving nature of this market has led to the disappearance of some smaller iPaaS vendors. Despite the hype, it takes several years, as well as wellplanned and careful execution of product and commercial strategies to develop a profitable and sustainable iPaaS business of substantial size. Agility and not just total cost of ownership (TCO) reduction is a key factor driving a shift toward iPaaS. iPaaS adoption could still stall as a result of inertia from enterprise integration practitioners having qualms about “reskilling”, and the potential redundancy of integration skills developed over several years. Vendor solution selection Inclusion criteria The criteria for inclusion of an iPaaS solution in this ODM are as follows: © Ovum. All rights reserved. Unauthorized reproduction prohibited. Page 3 Ovum Decision Matrix: Selecting an Integration PaaS (iPaaS) Solution, 2015-2016 The iPaaS solution should be available as a “standalone” cloud-based integration platform providing necessary tools, integration components, and resources for faster development of integration flows connecting SaaS and on-premise/other SaaS applications (or cloud-based data stores). Prebuilt connectors and integration templates offered with the iPaaS solution should not be confined to a specific SaaS ecosystem or available for only a very limited number of SaaS applications. From the perspective of core platform services, the iPaaS solution should have essential cloud characteristics, such as multi-tenancy, resource sharing, and rapid scalability, as well as allowing usage tracking and metering and supporting enforcement of service-level agreements (SLAs). The iPaaS solution should provide a centralized console for scheduling, monitoring, and managing integrations. The iPaaS solution should provide enterprise-grade security and governance features and capabilities, such as transport layer and application and network-level security and support for implementation and administration of governance policies. The iPaaS solution should have been generally available as of September 30, 2014. The vendor must have at least 30 enterprise (paid) customers using its iPaaS solution as of December 31, 2014. Exclusion criteria An iPaaS solution is not included in the ODM if: Integration capabilities/services are limited to cloud services brokerage (CSB)/integration brokerage arrangements. Integration capabilities/services are limited to B2B integration delivered via the cloud under self-managed or managed services models. Its usage is limited to the delivery of packaged integration for vendor’s own SaaS applications or those provided by a specific set of independent software vendors (ISVs). The customer base is confined to only a few specific vertical industries. The vendor has no direct contact with end users (enterprise customers), and customer support and interaction is taken care of by ISV/SaaS/platform/channel partners. While some vendors may have a channel-sales-only approach or predominantly focus on a “packaged integration” business model, there should be some process for direct customer interaction. Its usage is limited to loading and replication of data to, from, and between cloud environments. It caters mainly for the requirements of citizen integrators. Ovum ratings Market leader This category represents a leading iPaaS solution that Ovum believes is worthy of a place on most technology selection shortlists. The vendor has established a commanding market position with its © Ovum. All rights reserved. Unauthorized reproduction prohibited. 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Ovum Decision Matrix: Selecting an Integration PaaS (iPaaS) Solution, 2015-2016 vendors, while major vendors strengthen their market position. Ovum forecasts rapid growth for global iPaaS market, which is expected to cross the $900m mark in 2019. Ovum envisages the future of iPaaS as a much broader “Enterprise Integration-as-a-Service” phenomenon. This implies an evolution toward delivery of cohesive and flexible integration capabilities via the cloud for meeting application, B2B, and data integration, mobile enablement, API management, Internet of Things (IoT) integration, and process orchestration requirements of large enterprises. Key findings iPaaS continues to expand beyond cloud service integration, and is increasingly being used for hybrid integration scenarios involving a mix of on-premise, SaaS, B2B, and/or mobile application integration. Integration vendors with a rich “integration-as-a-service” heritage have evolved into leading iPaaS vendors. With the increasing need to “do more with less”, ICCs/integration COEs are embracing agile approaches to integration. LOB-led iPaaS adoption is quite common. The role of iPaaS in enterprise integration continues to expand, as evidenced by the increase in average subscription/deal size for relatively mature iPaaS solutions. The competition in the iPaaS vendor landscape continues to increase, with several major middleware vendors introducing/announcing their iPaaS solutions over the last six to nine months. Major iPaaS vendors have enhanced the overall value proposition of their solutions by offering low-latency processing, data management, and API management capabilities on top of iPaaS. 2015 will see major iPaaS vendors using more aggressive sales and marketing strategies and operations to expand their reach and increase market share. The highly competitive and rapidly evolving nature of this market has led to the disappearance of some smaller iPaaS vendors. Despite the hype, it takes several years, as well as wellplanned and careful execution of product and commercial strategies to develop a profitable and sustainable iPaaS business of substantial size. Agility and not just total cost of ownership (TCO) reduction is a key factor driving a shift toward iPaaS. iPaaS adoption could still stall as a result of inertia from enterprise integration practitioners having qualms about “reskilling”, and the potential redundancy of integration skills developed over several years. Vendor solution selection Inclusion criteria The criteria for inclusion of an iPaaS solution in this ODM are as follows: © Ovum. All rights reserved. Unauthorized reproduction prohibited. Page 3 Ovum Decision Matrix: Selecting an Integration PaaS (iPaaS) Solution, 2015-2016 The iPaaS solution should be available as a “standalone” cloud-based integration platform providing necessary tools, integration components, and resources for faster development of integration flows connecting SaaS and on-premise/other SaaS applications (or cloud-based data stores). Prebuilt connectors and integration templates offered with the iPaaS solution should not be confined to a specific SaaS ecosystem or available for only a very limited number of SaaS applications. From the perspective of core platform services, the iPaaS solution should have essential cloud characteristics, such as multi-tenancy, resource sharing, and rapid scalability, as well as allowing usage tracking and metering and supporting enforcement of service-level agreements (SLAs). The iPaaS solution should provide a centralized console for scheduling, monitoring, and managing integrations. The iPaaS solution should provide enterprise-grade security and governance features and capabilities, such as transport layer and application and network-level security and support for implementation and administration of governance policies. The iPaaS solution should have been generally available as of September 30, 2014. The vendor must have at least 30 enterprise (paid) customers using its iPaaS solution as of December 31, 2014. Exclusion criteria An iPaaS solution is not included in the ODM if: Integration capabilities/services are limited to cloud services brokerage (CSB)/integration brokerage arrangements. Integration capabilities/services are limited to B2B integration delivered via the cloud under self-managed or managed services models. Its usage is limited to the delivery of packaged integration for vendor’s own SaaS applications or those provided by a specific set of independent software vendors (ISVs). The customer base is confined to only a few specific vertical industries. The vendor has no direct contact with end users (enterprise customers), and customer support and interaction is taken care of by ISV/SaaS/platform/channel partners. While some vendors may have a channel-sales-only approach or predominantly focus on a “packaged integration” business model, there should be some process for direct customer interaction. Its usage is limited to loading and replication of data to, from, and between cloud environments. It caters mainly for the requirements of citizen integrators. Ovum ratings Market leader This category represents a leading iPaaS solution that Ovum believes is worthy of a place on most technology selection shortlists. The vendor has established a commanding market position with its © Ovum. All rights reserved. Unauthorized reproduction prohibited. Page 4
