What is iPaaS: Understanding integration platform as a service

Integration platform as a service (iPaaS) is a hosted service offering in which a third-party provider delivers infrastructure and middleware to handle a company’s data integration needs via a private or hybrid cloud. Learn more about iPaaS and its advantages.

What is iPaaS used for?

Companies often use iPaaS for exchanging common data between and among a company’s applications, for example, to use the same source data within both ERP and CRM systems. iPaaS is also used by some to exchange data externally with business partners, as an alternative form of EDI (electronic data interchange).

What are the benefits of iPaaS?

Data integration is a critical business objective because it delivers greater efficiency and consistency across the organization. Data in silos prevents the organization from achieving critical business insights into the health of the organization. Silos can cost IT a great deal of time in maintaining disparate data sets and in transforming data when data sets need to be merged.

iPaaS is a cloud-based alternative to traditional forms of data integration. Customers of iPaaS services are able to utilize a single, holistic source of data throughout multiple applications and business processes—without a significant investment of time and capital to purchase and configure data integration software internally.

Why use iPaaS?

iPaaS is used in situations in which current data integration is absent or insufficient for future needs, but the organization wishes to conserve IT budget and minimize effort as it adds to its data integration capability. It allows organizations to rapidly improve the quality of data integration—providing greater reuse of data and greater consistency of data across the organization—with little effort, as the service provider does the work of configuration, deployment, and optimization.

The future of iPaaS

In 2018, Informatica introduced the next generation of iPaaS with Informatica Intelligent Cloud Services (IICS). In addition to the four essential components of an integration platform as a service (data integration, application integration, API management, and connectivity), IICS supports new, broader use cases, ensuring data quality and security in the cloud, and supporting cloud-based master data management, a cloud integration hub, cloud data lakes, and big data use cases such as Internet of Things deployments.