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The Cost Optimization Benefits of an iPaaS

How the Alumio iPaaS helps reduce TCO, improve TTM and increase ROI
Written by
Saad Merchant
Read time
7 min
Last updated
Sep 6, 2024

Introduction

It’s a no-brainer that business automation results in cost optimization. What’s also a no-brainer is that digital transformation is the most effective way to achieve business automation.

…But how can businesses digitally transform? Great question. Here’s how:

Integrating SaaS solutions and cloud applications, such as e-commerce, ERP, PIM, CRM, and other systems, is the way to achieve digital transformation. These software integrations help digitalize and automate business processes across Marketing, Sales, Customer service, Procurement, HR, and all other departments. In other words, businesses can employ these software solutions to automate thousands of repetitive manual processes across departments, saving hundreds of hours and, therefore, money.

So, software integrations lead to digital transformation, which is required to achieve business automation, resulting in cost optimization.

However, there's a challenge: despite the efficiency automation brings, developing and managing these integrations requires substantial technical expertise, manual effort, and ongoing IT support. This process is often expensive, time-consuming, and complex.

To address this, we developed the Alumio iPaaS (Integration Platform as a Service). The Alumio iPaaS is a cloud-native, low-code integration platform designed to simplify and automate the creation, monitoring, and management of software integrations without the need for custom coding or extensive IT involvement. More than just delivering cost optimization through automation, the Alumio iPaaS also helps businesses optimize the cost and time it takes to develop and maintain these software integrations for digital transformation.

Alumio vivid purple colored quotation sign, a visual indicator of a quote following on this page.
Poor integration across applications is seen as the second main barrier to the effective application of digital technology.”
- Deloitte

The cost optimization benefits of the iPaaS vs custom code integrations

The custom code integration problem

Traditionally, software integrations—like connecting ERP systems to e-commerce platforms or linking e-commerce with PIM systems—require custom, point-to-point code. Due to their reliance on custom code, these integrations are complex and can only be built, managed, and monitored by senior developers or integration specialists.

Many companies outsource this work to costly specialists, increasing their dependency on third-party providers. Managing it in-house requires hiring senior developers (which is increasingly difficult) and dedicating significant IT resources to maintain and govern these integrations. Both approaches are expensive, time-consuming, and drain valuable internal resources.

The Alumio iPaaS solution

Designed to supersede the problems of custom coding integrations, the Alumio iPaaS helps significantly lower the technical threshold for creating integrations. As a low-code, cloud-native integration platform, it enables businesses to integrate two or multiple software solutions via one user-friendly interface, without any custom coding, and across on-premise or cloud environments.

Being an API-driven solution, the Alumio iPaaS helps make integration simple for both developers and non-developers by providing self-service integration features such as:

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A rich library of connectors

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Real-time data synchronization

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Flexible data transformation features

As a scalable and future-proof integration solution, there are three key cost optimization benefits that the Alumio iPaaS delivers:

1. Reduced TCO

(Total Cost of Operations)

2. Improved TTM

(Time to Market)

3. Increased ROI

(Return on Investment)

Reduce total cost of operations with the Alumio iPaaS

Making integrations user-friendly, automated, and visible

Alumio vivid purple colored quotation sign, a visual indicator of a quote following on this page.
Over 40% of companies see application integration as one of their top challenges.”
- Deloitte

For businesses seeking to cut operational costs, the Alumio iPaaS offers them the flexibility to integrate any software solution rapidly. These integrations help automate repetitive manual processes, reduce the operational risks of human error, and enable businesses to optimize how they use skilled employees to develop newer solutions.

When it comes to building and managing integrations, the Alumio iPaaS delivers key operational advantages that significantly lower Total Cost of Operations (TCO):

1. Making integrations simple for developers and non-coding professionals

Previously, only expert developers could create and manage integrations. With Alumio’s low-code platform, junior developers, project managers, data specialists, and even business users with data skills can now build and oversee integrations. This reduces hiring, outsourcing, and third-party reliance, slashing operational costs. More importantly, Alumio’s platform doesn’t just free senior developers from routine tasks; it equips them with advanced tools to design complex, custom integrations tailored to your business’s specific needs.

2. Reducing troubleshooting costs with automated logging

By eliminating custom code and centralizing all connections, the Alumio iPaaS simplifies error detection and resolution through a single interface. The platform’s automated monitoring and logging features track every process, data transfer, and system change, instantly flagging errors or API conflicts. Users can swiftly troubleshoot issues via an intuitive dashboard, saving time and reducing labor costs.

3. Eliminating black boxes and budget overruns

With traditional custom code integrations, non-developers often struggle to understand the data logic behind integrations, leading to unpredictable costs—a "black box" problem. Integration specialists may request inflated budgets for fixes, or struggle to justify legitimate costs, leaving business owners uncertain about resource allocation.

The Alumio iPaaS eliminates this issue by providing complete visibility into all integrations and data flows through a user-friendly interface. Developers, project managers, and business owners can collaborate seamlessly, seeing exactly how logic is built versus what was agreed upon. This transparency prevents hidden costs and provides clear, predictable pricing for fixes, improvements, or scaling integrations.

Improve ‘Time to Market’ with
the Alumio iPaaS

Create fast, flexible, and scalable integrations

By enabling businesses to integrate systems, software, and applications rapidly, the Alumio iPaaS boosts cost optimization by improving TTM (Time to Market). In other words, it helps businesses launch, test, and improve products and services in the market significantly faster.

Consider a business preparing for a seasonal sale in a month. To optimize product experience and maximize sales, the company integrates its e-commerce platform with a PIM (Product Information Management) system. However, the e-commerce platform is already linked to the company’s ERP (Enterprise Resource Planning) system, requiring the PIM system to connect with two integrated endpoints (e-commerce and ERP).

Building these point-to-point integrations with custom code while ensuring full data integrity in such a short timeframe poses significant operational risks. In contrast, the Alumio iPaaS can seamlessly create a cross-platform integration (PIM to ERP and e-commerce) within weeks, maintaining complete data integrity. Additionally, the platform offers robust caching capabilities and can handle large order volumes during peak sales. Its automated error detection ensures that the integration is market-ready without any errors or conflicts.

1. Seamlessly add or interchange integrations

The platform allows businesses to effortlessly add new software connections to existing integrations, supporting REST, custom HTTP, FTP, VPN, database connections, and more. If a connected application needs to be replaced or swapped with a new solution, the platform enables a seamless transition without compromising data integrity. This flexibility empowers businesses to experiment with new applications, enhancing their ability to improve Time to Market.

2. Use connector packages as an integration shortcut

To accelerate integration development, the Alumio iPaaS provides an expanding library of pre-built connectors. These packages enable rapid connections to popular software or systems in just a few days. The platform also offers flexible tools to customize and adapt these ready-made integrations to meet specific business requirements. Additionally, users can save and reuse the configurations of any new integrations they create with the Alumio iPaaS, streamlining future projects.

3. Enable workflow automation

The Alumio iPaaS allows you to chain processes across integrations to automate a complex sequence of workflows. This helps automate repetitive manual processes, such as sending real-time product stock updates from the ERP system to the e-commerce platform and PIM system simultaneously. It is also useful for automating data entry work and scheduling daily, weekly, or even monthly tasks.

Increase ROI with the Alumio iPaaS

Get more for less on your integrations

Whether you're creating your first software integrations, upgrading or migrating existing ones, or exploring new solutions to drive digital growth, the Alumio iPaaS is here to help.

The Alumio iPaaS empowers businesses to accelerate their digital transformation with a ready-to-use platform that meets all integration needs. It enables fast, flexible connections between software solutions for seamless business automation—all at predictable, cost-effective prices.

The Alumio iPaaS simplifies the process of planning and calculating ROI on integrations and digital growth by enabling businesses to:

1. Save on internal integration solutions

One of the key advantages of the Alumio iPaaS is that it eliminates the significant costs, time, and risks associated with developing and managing internal integration solutions. Instead of dedicating expensive resources and many months to build a custom solution, businesses can start integrating software within weeks. This allows for immediate testing and adjustments to better align with business needs. Moreover, it helps avoid the hidden costs of maintaining, updating, and troubleshooting in-house solutions, preventing unpredictable expenses and time drains that can erode ROI.

2. Avoid spending on platform security, updates, and compliance

Beyond saving businesses the expense and hassle of developing and maintaining internal integrations, the Alumio iPaaS continuously evolves to meet industry standards in performance and security. With regular platform updates, top-tier data security, scalable infrastructure, and dedicated cloud space, the Alumio iPaaS frees businesses from the burden of ongoing improvements. Additionally, it ensures compliance with key privacy regulations like GDPR, SOC2, CCPA, FERPA, HIPAA, and more by centralizing all integrations on one platform, providing complete control and visibility over customer data.

3. Get 360-degree data insights

The Alumio iPaaS empowers businesses to identify revenue leaks and pinpoint areas needing improvement by offering a centralized view of all integrations and data. This includes tracking customer engagement and spotting inefficiencies in processes. These insights can be leveraged to optimize marketing activities, ad spending, and budgeting for business improvements.

Conclusion

In conclusion, most digitalizing companies waste significant cost, effort, and time by experimenting with tedious point-to-point software integrations without the proper IT infrastructure. While the Alumio iPaaS helps reduce TCO (Total Cost of Operations), improve TTM (Time to Market), and increase ROI (Return on Investment), this is still only a summary of the many cost optimization benefits that it provides.

The Alumio iPaaS provides businesses with a next-gen, scalable solution. It helps seamlessly integrate new software solutions and migrate old legacy systems to new ones. Most importantly, it allows businesses to expedite business automation and digital transformation in a quick, cost-effective, and future-proof way.

Looking to experience first-hand

how the Alumio iPaaS can help you cost-optimize your business with software integrations?

Get a demo now!