Evolution of iPaaS

Emergence of Low-code / no-code iPaaS platforms democratizing integration.

Early on, SnapLogic offered a visual interface for creating integrations, allowing users without extensive coding knowledge to implement integrations swiftly.

There was a need for platform-based integrations across on-premise, cloud, and SaaS applications.

Businesses using CRM platforms like Salesforce were seeking a comprehensive integration solution for both on-premises and cloud-based applications and systems.

Over this decade, iPaaS evolved to offer enhanced capabilities like API management, Master Data Management (MDM), and advanced data integration features.

Informatica's iPaaS solution offered advanced data governance and quality tools alongside its integration services.

With the growing volume of integrations, security and compliance emerged as a pressing business concern.

Jitterbit emphasized its commitment to platform security by introducing encryption, secure agent technology, and compliance with standards like HIPAA and GDPR.

Towards the latter part of the decade, AI/ML technologies were leveraged for integration tasks, data mapping and detecting anomalies.

Informatica introduced CLAIRE, a metadata-driven AI technology, to enhance data discovery, integration, and data management.

Mapping, integrating, and managing data
from different systems, while maintaining data quality and security, can be costly and time- consuming.

Integrating incompatible systems can be costly and complex due to data compatibility, privacy, and security issues.

Lack of real-time integration can result in outdated or inaccurate data, negatively affecting business decisions and customer experiences.

Airline industry mergers like United with Continental, and American Airlines with US Airways, experienced challenges with integrating IT systems, including reservation systems and customer databases. Glitches and inefficiencies led to customer dissatisfaction and financial losses due to compensation claims and reputational damage.

The nonprofit healthcare system, Ascension, partnered with Google to integrate and digitize health data in a project called “Project Nightingale.” The project faced significant scrutiny over privacy concerns, leading to delays, reputational damage, and increased costs due to the need for tighter security measures and regulatory compliance.

Especially in the retail industry, a lack of real-time data can lead to missed sales opportunities and customer dissatisfaction. Companies like Sears faced operational challenges and lost customers partly due to such technological inefficiencies.

Lack of standardization
makes it cost-intensive to develop and maintain custom integrations for individual applications.

Unmonitored integrations can create underlying issues leading to data loss or inconsistencies.

Neglecting security
can lead to data breaches or leaks resulting in financial penalties.

Many organizations in the early 2000s built custom, in-house software without considering standardization leading to an incompatibility with new or third-party systems. J.C. Penney’s failed transformation attempt in the early 2010s is a similar example, where radical changes and lack of standardization led to inefficiencies and significant financial losses.

Delta Airlines faced an IT outage in 2016 due to a malfunction in the power control module. The outage caused close to 2,000 flight cancellations over a period of three days, costing Delta over $150 million USD.

The Equifax data breach in 2017 is a prime example. A web application vulnerability resulted in a massive breach, affecting 147 million people. This security oversight cost Equifax up to $425 million USD in settlements.