Ovum says iPaaS is not yet the 'silver bullet' for SaaS integration
Ovum forecasts that global spend on integration solutions will grow at a compound annual growth rate (CAGR) of 8.3 percent between 2011 and 2016, reaching US$14.4bn by the end of 2016. A significant part of this spend will be for SaaS integration solutions, uptake of which is being driven by the increasing complexity of enterprise application portfolios and tight IT budgets. New research* from Ovum suggests 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 traditional integration approaches may enable interaction between SaaS and other on-premise and SaaS applications, the associated expenditure and implementation times are not always in line with IT budgets and project plans" says Saurabh Sharma, senior analyst in Ovum's Software team. "But 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".
Organizations should exercise caution when selecting a suitable approach to SaaS integration as integration-related expenses are a significant part of the total cost of ownership (TCO) for SaaS solutions. "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," concludes Sharma.
Ovum provides clients with independent and objective analysis that enables them to make better business and technology decisions. Our research draws upon over 400,000 interviews a year with business and technology, telecoms and sourcing decision-makers, giving Ovum and our clients unparalleled insight not only into business requirements but also the technology that organisations must support. Ovum is an Informa business.