Why make iPaaS the backbone of your IT system as a CIO?

iPaaS, which stands for Integration Platform as a Service, is a subset of this technology. It is on the roadmap of an increasing number of CIOs. However, not all companies have adopted it yet. When is it strategically important to implement, and for what reasons?

What is iPaaS? a cloud-native platform at the heart of data integration

iPaaS is a cloud-native technology that allows for the efficient connection and federation of different application and data systems. These integration platforms, in particular, enable communication between traditional on-premise services and newer cloud-based applications.

To better understand how it works, we can compare iPaaS to an efficient postal service. Just as the postal service ensures the delivery and precise tracking of various types of shipments (letters or parcels), iPaaS guarantees full traceability of exchanged data. In case of an incident, it immediately reports a problem, such as the loss of a “parcel” or a malfunction. It then centralizes this data into the digital equivalent of sorting centers or hubs, automating their delivery to the final destination. This helps avoid complex or time-consuming manual operations such as verifying or manually coding data.

One of the key advantages of iPaaS is its ability to operate in real time, facilitating immediate synchronization of data flows between applications. For example, when a user creates a customer record in a CRM, iPaaS automatically displays that information in the ERP back-office or any other connected application.

Finally, iPaaS provides integrators with a unified and clear view of data flows through a single administration console. This global visibility is reminiscent of the traffic plan designed by Haussmann in Paris, which helped streamline and structure urban traffic. Before this reorganization, streets were poorly lit, inconvenient, and poorly maintained. Similarly, iPaaS today serves as the essential technological backbone to structure, streamline, and securely manage the flow of data within modern businesses.

In summary, iPaaS fulfills three essential roles:

1. Connect: It offers a wide range of connectors to efficiently retrieve information from on-premise or cloud systems.
2. Transform: It manages data transformation and mapping between source and target applications, clearly defining their path and ensuring smooth exchanges.
3. Monitor: It ensures real-time traceability and monitoring of all data flows.

A strategic technology at the heart of digital transformation for businesses

iPaaS technologies have emerged in the last decade, directly linked to the arrival of the cloud in businesses. VISEO has successfully implemented iPaaS solutions for clients in various industries such as cosmetics and real estate.

These integration platforms, still relatively new and perceived as technical, are generally adopted in contexts of technological disruption: changes to an ERP, migration to a new CRM version, or the deployment of SAP. In other words, they come into play when the “core” of the information system undergoes a deep evolution, making specific interfaces necessary. In this context, investing in an iPaaS solution is particularly cost-effective: at a cost equal to 20% of the amount initially allocated to specific developments, iPaaS can deliver up to five times faster. The larger the company, the more time needs to be anticipated to prepare for a global move to the cloud.

Today, iPaaS stands as an effective solution to the challenges related to the growing heterogeneity of systems and the need to interface multiple applications. However, a structure that centralizes all its activities (CRM, billing, sales tracking, sales management) within a single integrated application may not necessarily need an additional integration platform.

However, in the future, the growing API-ization of information systems and the arrival of intelligent assistants or digital copilots could profoundly disrupt this market. Recently, Satya Nadella, CEO of Microsoft, even announced the end of the traditional SaaS model in favor of more modular applications tailored to the specific needs of businesses. In the long run, an on-demand business model will likely be favored over a global license.

The impact of artificial intelligence (AI) on iPaaS is also significant. With assistants capable of rapidly generating code, certain standard tasks can be accelerated using pre-built models, significantly reducing the time needed to develop interfaces and improving the productivity of technical teams.

Ensuring the security of data and APIs

Like an efficient postal service, iPaaS does not concern itself with the exact content of the data it transports but rigorously secures its delivery. It ensures, in particular, the systematic encryption of information and effectively protects it against any intrusion or hacking attempts.

iPaaS also strengthens the security of APIs (Application Programming Interfaces), which, without us necessarily realizing it, shape our digital daily lives: online banking account consultations, participation in a Leetchi fundraiser, or even bank transfers made via SMS. Each of these operations involves various applications within a bank’s information system. Some of these applications may be external, located on different platforms, increasing both the complexity and associated risks.

Given the growing number of APIs and the increasing aggregation of digital services, securing exchanges has become a major challenge to which iPaaS provides a clear and effective response.

Business process accelerator and strategic partner for companies

iPaaS is particularly useful in automating and securing business processes. For example, when a customer buys a phone in-store, iPaaS intervenes to automate the necessary checks: identity card, active subscription, and proof of address. Once these checks are validated, iPaaS automatically triggers the completion of the sale.

In this context, business processes are precisely described, and iPaaS allows each scenario to be clearly modeled, whether it is a success or a failure (for example, an expired identity card or inconsistent information). Thus, iPaaS can instantly query both internal and external services to ensure fast and reliable management.

Furthermore, artificial intelligence (AI) enhances this automation. It now allows business protocols to be translated into technical protocols, particularly in areas such as support centers or claims management. These new technologies speed up the deployment of solutions and significantly reduce the need for custom development. Although the precise impact of generative AI on iPaaS solutions is still hard to quantify, a clear trend is already emerging: AI in learning mode provides ready-to-use accelerators for developers, automates the interpretation and direct coding of business processes, and contributes to monitoring by efficiently identifying anomalies and incidents.

Finally, in an increasingly open and interconnected digital environment, having an iPaaS becomes strategic for businesses. iPaaS plays a key role as a trusted partner for securing transactions and the delivery of sensitive data. Adopting an iPaaS platform enables companies to guarantee the reliability, security, and scalability of internal and external data exchanges, thus enhancing their competitiveness in the market.