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Celigo 2019 Predictions: iPaaS will continue to be the fastest growing segment of the enterprise software space in 2019

Industry executives and experts share their predictions for 2019.  Read them in this 11th annual VMblog.com series exclusive.

Contributed by Jan Arendtsz, CEO, Celigo

iPaaS will continue to be the fastest growing segment of the enterprise software space in 2019

While blockchain, AI, IoT, and bots get all the attention, we believe that one of the least visible, un-coolest IT discipline - Integration Platform-as-a-Service (iPaaS) - will, for another year, continue to be the fastest growing segment of the enterprise software market.

Today, we find ourselves in the second decade of SaaS apps. As consumers got used to apps such as Gmail, Facebook, Box and Spotify - those that are easy to use, offer beautiful interfaces and require no training - enterprise applications followed suit. This is what we call the era of "the Consumerization of the Enterprise."

 

Over the last 10 years, this ease of building, purchasing, implementing and adopting this new category of apps has led to an explosion of business applications that tackle just about every problem an individual or team may come across.

For example, here is the evolution of the marketing technology application landscape since 2011: (Martech 7000)

 

This trend has enabled companies to quickly scale without having to add more resources. By using technology to offload non-strategic activities, more time and effort can be spent on growing the core business without hiring more personnel. Additionally, the ownership of these business applications has moved away from centralized IT departments to lines of business users who are focused on solving their immediate needs without a holistic look at how the data fits in the context of the entire organization.

But as wonderful as these apps are, it is possible to have too much of a good thing, as business processes can't exist in isolation of each other. Fluid sharing of information between different parts of the organization and applications is essential to improve decision-making. This is a critical operational building block in organizations of all sizes.

In this age where teams depend on dozens - if not hundreds - of cloud applications to solve specific problems in the enterprise, integrating these processes and applications becomes exponentially harder. Ad-hoc, homegrown solutions are laborious and inflexible, and force organizations to keep reinventing the wheel.

Custom integrations led entirely by technical teams are not suited for this new era, especially as business processes need constant modifications as market opportunities and threats appear in the blink of an eye, employees come and go, customers expect immediate and perfect responses and new applications are adopted every day.

This app creep is an urgent problem that every growing organization will face, and this is where integration platforms shine, why this market segment has been so hot and why ultimately Salesforce paid $6 billion to acquire Mulesoft.

Gartner defines iPaaS as "a suite of cloud services enabling development, execution and governance of integration flows connecting any combination of on premises and cloud-based processes, services, applications and data within individual or across multiple organizations." In other words, iPaaS provides a way for organizations to standardize how applications and new business processes are added to the organization. The platform takes care of critical functionality such as guaranteed data delivery out of the box, while providing an easier user interface that helps accelerate how data is connected throughout an organization.

In many ways, iPaaS is the system of pipes that allows for information to flow within an organization. It is invisible when it does its job, so it may not have the same awareness as other "hot" trends in the industry. But every business will need it to scale and grow to beat the competition.

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About the Author

 

Jan Arendtsz is a veteran of the software industry with more than 20 years of experience in development, product management, client services, and sales roles. He founded Celigo in 2006 with the goal of simplifying the integration of cloud-based applications. He is responsible for overseeing all company operations.

Jan was a Director of Technical Services at NetSuite, where he led a team that provided technical solutions within the professional services group. He also worked as a Product Manager at NetSuite, launching the company’s integration platform. Before NetSuite, Jan worked for Cambridge Technology Partners, where he implemented complex solutions for a multitude of customers ranging from Internet startups to Fortune 500 companies.

Jan holds a B.S. in Computer Science from the University of Texas at Austin.

Published Friday, December 14, 2018 7:42 AM by David Marshall
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