Almost all businesses have multiple systems and software that are used in day-to-day operations, collecting data every day. As time goes on, managing the integration between these systems can be challenging and complex, so choosing a solution to manage these integrations is important to ensure operational efficiency.
In this article, we’ll go over two leading options to handle data integration for your business: hybrid integration platform (HIP) and integration platform as a service (iPaaS). The article will cover the pros and cons of each platform, what the differences are, and how to choose between these two platforms.
What is a hybrid integration platform?
HIPs are software platforms that provide data connectivity and integration between on-premises and cloud-based systems. While the world moves toward more cloud-based systems, many businesses need to keep legacy systems on-premises for security and infrastructure reasons. The multiple deployment options a HIP can offer are vital for maintaining simple and secure connections between these disparate systems. HIPs simplify data integration by providing API management and B2B integration in the cloud and on-premises.
Pros and cons of hybrid integration platforms
Pros
Multiple deployment models
HIPs allow businesses to launch their integration platforms in multiple environments, such as on-premises, private cloud, public cloud, or any combination of these environments. Regardless of the business needs or internal system setup, you will have a comprehensive data integration solution that enhances collaboration and informed decision-making.
Simplified integration architecture
With all your integration needs covered by a singular platform, you no longer need multiple integration systems, which simplifies the overall architecture of your integrations.
Increased business agility
HIPs can support various types of integrations or connections, which allows businesses to adapt quickly to changes in their integration architecture. Whether the change is for restructuring or the addition of a new system, the business will be able to respond to these changes quickly, so its integration architecture continues to run smoothly.
Built-in security features
Most HIPs have built-in security features that give your organization standardized data governance to control access to the various sources of data. This allows organizations to protect sensitive data and helps to protect against data breaches.
Reduced costs
With the agility to support various integrations in a single platform, businesses save on the cost of acquiring and maintaining separate tools for every integration. HIPs support multiple deployments, so the need for custom development or additional resources is minimized.
Cons
Technically challenging deployments
While there are many advantages to multiple deployment options, some deployments may be technically difficult to set up. Because deployments are both on-premises and in the cloud, this doubles the technical burden and expertise needed for your team to familiarize themselves with both deployment environments.
Complex tooling needs
In a hybrid environment with multiple systems involved, the maintenance and monitoring of integration flows can be challenging. With on-premises and cloud-based applications involved, there are a variety of protocols, data structures, or APIs that likely demand separate tools to manage the integration. A wider range of tools can increase the complexity of troubleshooting and maintenance required.
On-prem apps might be slower to upgrade than cloud-based ones
Newer cloud-based applications and integrations can typically be upgraded quickly and scaled easily, while the on-premises counterparts can have issues keeping up with all changes made. On-premises resource and hardware constraints can require a large amount of planning and upfront costs when scaling is required.
What is an integration platform as a service?
An iPaaS is a cloud integration platform that handles communication between applications, services, and data from cloud environments. This system provides a cloud-first approach to data integration that prioritizes cloud-based solutions over legacy on-premises systems. An iPaaS provides advanced data flow management from the cloud with key functionalities such as API integration and event-driven automation.
Get more information about iPaaS: What is Integration Platform as a Service?
Pros and cons of iPaaS
Pros
Ease of use
The centralized integration that an iPaaS provides allows businesses to quickly adapt and easily integrate their various cloud applications. With user-friendly interfaces and a preconfigured infrastructure, the use of an iPaaS is much easier and less time-consuming than any in-house integrations.
Reduced overall costs
Because it is hosted in the cloud, an iPaaS has a much smaller initial cost and can reduce the overall costs when scaling in the future. When compared to an on-premises solution, the fully cloud-based platform does not have any costs related to physical hardware or maintaining/growing that hardware when scaling in the future.
Faster deployment
An iPaaS is only deployed in the cloud, so the overall deployment is a simple process that requires no additional resources or hardware. When responding to changes in the market, an iPaaS can evolve quickly to efficiently transform or scale an integration.
Built-in connectivity
Most iPaaS platforms come equipped with pre-built connectors that can be configured quickly to connect to various data sources. This eliminates the need for time-consuming development for data sources that already have connectors built into the platform.
Improved collaboration
With all integrations available in a single cloud-based platform, an iPaaS can help boost collaboration across an organization. It enables teams from different departments to effectively share resources, develop integrations, and simplify complex workflows for non-technical team members.
Cons
Reduced data transformation capabilities
Because an iPaaS is deployed in the cloud, it is not able to provide data transformation capabilities for physical on-premises sources or systems. This will require an additional solution to handle on-premises data transformations.
Lack of integration flexibility
With the ability to only integrate with cloud-based systems or sources, the flexibility for integrations is constrained to only cloud connections. An iPaaS would require implementing a separate additional platform to integrate with on-premises systems and data sources.
Slower integrations
When dealing with larger, more complex integrations, an iPaaS could run into performance bottlenecks when the scale of the integration exceeds the capabilities of the platform. These latencies can be felt the most in scenarios when the platform is at peak usage or when there are internet/network disruptions.
5 key differences between HIP and iPaaS
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HIP
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iPaaS
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Cloud vs. On-premises deployments
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Hybrid platform with deployments both on-premises and in the cloud.
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Deployments only in the cloud.
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Implementation and maintenance
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Complex deployment options provide flexibility but require a higher level of technical expertise to implement and maintain.
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Simple implementation in the cloud that is simple to maintain in a singular environment.
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Cost-effectiveness
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A hybrid integration solution can mean higher upfront costs but can be more cost-effective when working with both on-premises and cloud deployments.
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Cloud deployments have a lower initial cost and cost less to scale. However, it can be costly to integrate with on-premises systems.
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Scalability needs
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Scaling a hybrid environment can require additional planning and programming to properly scale on-premises systems with their cloud-based counterparts.
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Being fully in the cloud means an iPaaS can scale quickly and easily to keep up with growth.
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Business focus
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Ideal for businesses that need to integrate complex on-premises systems with new cloud-based applications.
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Best suited for organizations that need cloud-to-cloud connectivity and focus on a cloud-first approach.
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How to choose between HIP and iPaaS for your business
Both HIP and iPaaS provide benefits for businesses that are looking to streamline their integration architecture. When choosing between HIP and iPaaS, it is important to consider your business needs and infrastructure first. The first factor to consider is what systems you are integrating with, how those systems are deployed or accessible for integration, and how complex those integrations are. Are you only integrating with cloud applications, or do you require connections to legacy on-premises systems, too?
You should also consider your business's existing IT environment and expertise, as well as the budget available for this platform implementation. HIPs will work best in a hybrid IT environment that requires complex, multi-layered integrations but will have higher upfront costs for implementation and maintenance. An iPaaS will have lower upfront costs and will be better suited for cloud-based businesses that require a scalable cloud integration solution with little IT involvement.
Learn more about data integration software: Top 8 Data Integration Software Tools for 2024
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