by Alex Pauncz | December 18, 2023

4 Embedded Integration Trends for 2024

As we enter the new year, we’re reflecting on what we’re seeing in the marketplace from some of the world’s leading solutions providers and the biggest names in data — our OEM partners. Read on to see key trends coming to data management in 2024, and some of the ways organizations will be leveraging data connectivity in their solutions.

Maintenance is the #1 data integration challenge

Data fragmentation is a critical challenge facing enterprises and solutions providers. Today, the average mid-market business uses more than 130 applications, up over 800% in the past five years.

Simultaneously, rapid technology improvements have resulted in frequent changes across APIs, such as growing data privacy and security standards that necessitate constant monitoring and adaptation. The growing interconnectivity of systems and services magnifies the impact of these challenges.

From our deep experience building and maintaining data connectors for enterprises and the world’s leading data-driven solutions, we have seen the challenges of API maintenance firsthand. API maintenance commonly comprises more than 60% of integration work and is becoming an increasingly crucial concern among IT and engineering teams.

As AI becomes a priority, data becomes king

According to Gartner, more than 80% of enterprises will actively use or deploy AI-enabled applications by 2026. Today, that number is only 5%. While we’re still in the early innings of this transformative technology, the next two years will see meteoric adoption.

Enterprises are searching for ways to generate content and insights from data that are uniquely valuable and impactful to them. They are looking to train Generative AI (GenAI) on their own sales, market and financial data — not just search engine results.

AI success starts with a strong data management strategy. GenAI technologies are only effective if they are trained on comprehensive, quality data. That’s why in 2024 more than ever, organizations need secure, streamlined access to data across their entire stack.

For many organizations, investing in the right data management and integration strategies will be paramount to AI success in 2024. We’re increasingly seeing OEM partners focus on improving their data connectivity strategy to unleash the full potential of GenAI inside their applications.

The move to the cloud necessitates flexible integrations

2023, more than any other, was the year of the hybrid cloud. The trend will continue gaining momentum in 2024, seeing enterprises and solution providers continue to shift from on-premises solutions to the cloud, and notably towards multi-cloud and hybrid cloud environments.

According to the State of Cloud Report, which surveyed 1,000 enterprise leaders globally, 94% of organizations are cloud-first, and 65% leverage multi-cloud setups, with an additional 20% adding more cloud environments. But many solutions providers are still adapting to this cloud-first world, bringing solutions to new and varied cloud environments and transforming on-prem solutions into cloud services.

Different applications, systems, and clouds require different types of integrations. This need for new and varied integrations is growing, and we are seeing several of our OEM partners adding new embedded connectors and exploring our CData Connect Cloud platform.

For example, we recently hosted a joint webinar with SharpCloud, a cloud-first project roadmapping and analytics solution, which is leveraging CData Connect Cloud and embedded CData Connectors to support cloud-based analytics.

Watch the webinar

Integration is a pricing differentiator

For years the software industry has recognized that applications distinguish pricing tiers, in part, based on integrations. But with the expansion of data fragmentation and the escalating need for integrations, solution providers are recognizing an increased potential to set themselves apart through connectivity.

We’ve recently worked with several OEM partners to help enhance their connectivity as well as their pricing. Hear from one of those partners, Layer2. They’ve leveraged embedded integrations to migrate 20 percent of their customers to a new, integration-driven enterprise pricing tier.

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To explore embedding integrations for your solution, see our OEM data connectivity offering. And to get more insights on data connectivity, follow us on LinkedIn.