iPaaS vs Hybrid integrations: Key differences

iPaaS vs. hybrid integrations: key differences

Ever since the emergence of cloud technology, mobility, IoT, and APIs, businesses have sought to accelerate digital transformation initiatives by integrating internal systems, data sources, and third-party applications. Integrating business-critical apps (both internally and externally) enables seamless real-time data sharing and boosts operational efficiency. While there are several integration solutions that help connect cloud apps, when it comes to building these integrations between on-premises and cloud environments, things get trickier.

For instance, many larger and older businesses still use legacy systems that run on-premises, such as popular ERP solutions like SAP ECC. If they want to integrate it with a cloud-based application like the Shopify e-commerce platform or Akeneo's PIM solution, as mentioned in the introduction, they will either need to use a hybrid integration solution or an advanced cloud-based iPaaS (integration Platform as a Service).

Hybrid integration solutions may be deployed through both cloud-based and on-premises middleware, or even through custom integration systems. Whereas, iPaaS solutions are typically deployed as fully managed services in the cloud. To understand how both of these solutions can help facilitate hybrid integrations, let's explore how they work. 

What is the iPaaS?

An iPaaS (integration Platform as a Service) is a low-code or no-code, cloud-based middleware solution. As an API-driven solution, it provides a user-friendly web interface to create, manage, and monitor integrations between two or multiple systems, cloud apps, SaaS solutions, and data sources. The iPaaS enables real-time data synchronization between all integrated endpoints and automates data exchange based on conditions and triggers. It offers pre-built connectors and features that help businesses integrate a wide range of systems, such as ERPs, e-commerce platforms, PIM, CRM, WMS, POS, marketplace automation software, and more. Certain iPaaS vendors, like Alumio, provide advanced data transformers to modify data limitlessly and schedulers to enable event-based integrations.

What are hybrid integration solutions?

Hybrid integration solutions are designed to connect apps, data, and files with cloud services across both on-premises and cloud-based environments. With a hybrid integration architecture, some integrations and data may reside in the cloud, while others may remain within an organization's private infrastructure. In other words, by blending traditional integration methods with modern cloud strategies, hybrid integration solutions enable businesses to connect existing on-premises infrastructure with scalable cloud-based solutions. This enables businesses to integrate their current workflows and data with new cloud solutions effectively.

What are the differences between the iPaaS and hybrid integrations?

As mentioned, hybrid integration is primarily implemented as a solution for businesses to connect their on-premises legacy systems with the newly emerging cloud environments. On the other hand, the iPaaS is designed as a next-gen, cloud-based integration solution that excels at swiftly integrating the latest SaaS (Software as a Service) solutions and cloud apps for digital commerce.

Here’s where the differences emerge: While there are iPaaS solutions that focus only on cloud-to-cloud integrations, advanced iPaaS providers like Alumio also provide hybrid integration features and connectors to integrate both on-premises and cloud-based systems as well. However, while this means that there are iPaaS solutions that are thus essentially also hybrid integration solutions, not all hybrid integration approaches may involve implementing an iPaaS. Businesses may also implement hybrid integrations through on-premises middleware like ESB, Message-Oriented Middleware (MOM), or Integration Brokers.‍

Read more about the different types of middleware solutions and how they compare with the iPaaS →

Key differences between iPaaS and hybrid integration:

• Cloud vs. on-premises: The iPaaS enables deployments of integrations on a secure cloud space via a user-friendly web interface. While this saves time, money, hosting space, and implementation time, hybrid integrations enable businesses to connect on-premises systems they already use with cloud apps. In other words, iPaaS solutions are ideal for businesses looking to migrate all their systems to the cloud and enable cloud-native integration for SaaS solutions, ERPs, CRMs, and more. Whereas, hybrid integration solutions are particularly useful for organizations that need to keep certain data on-premises for security or compliance reasons.
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• Ease of implementation and maintenance: One of the greatest advantages of iPaaS is ease of use, with many platforms offering drag-and-drop interfaces, pre-built connectors, and automated workflows. This reduces the technical burden on IT teams, allowing users from different departments to configure integrations without needing specialized coding skills. On the other hand, Implementing hybrid integrations can involve more complex implementations, often requiring custom configurations and technical expertise. Hybrid models may also demand continuous maintenance to ensure compatibility and optimal performance, especially since cloud applications are updated regularly. Whereas, iPaaS solutions can handle automated updates for cloud apps.

• The differences in cost-effectiveness: iPaaS solutions are generally subscription-based, where costs are predictable and scalable as per usage. The simplicity of the pricing model makes budgeting easier, and companies can avoid upfront costs associated with hardware setup. Hybrid setups entail a blend of infrastructure costs (for on-premise systems) and subscription costs (for cloud services), which can result in a higher total cost of ownership. However, for companies heavily invested in on-premises systems, it may be more economical to maintain a hybrid model than to migrate entirely to the cloud.

• Scalability requirements: As a cloud-based solution, the iPaaS scales easily with your business's growth, seamlessly handling data surges or new integrations. With low-code/no-code tools, iPaaS solutions empower users to add or modify integrations on demand, supporting business growth without heavy IT involvement. While hybrid Integrations can be flexible, they often require careful planning and infrastructure management to scale effectively. Expanding hybrid environments might involve significant adjustments to on-premises systems, making them less agile than pure cloud-based iPaaS solutions.
  

Read how the Alumio iPaaS provides the architecture required to adopt new integration methods, such as Composable Commerce →