Did an Analyst Just Predict the Death of Integration Platform as a Service?

Did an Analyst Just Predict the Death of Integration Platform as a Service?

Analyst house Gartner, Inc. recently predicted that up to two-thirds of iPaaS providers will not survive by 2023. This statement is surprising considering the recent surge in hybrid and cloud integration adopters. It also comes in stark contrast to the researcher’s most recent Magic Quadrant study on iPaaS, when Gartner predicted the market to soon represent the largest application integration middleware segment. They even warned of the potential for it to consume the traditional software delivery model.

Gartner believes that vendor consolidation will be a key cog in the decline of available cloud integration products. During this period, the expectation is that the smaller niche players will merge, be acquired or shift focus to another technology category. The researcher notes that this will occur in large part because the leading players (Oracle, Microsoft, IBM) are better equipped to approach customers with aggressive pricing and flexible software packages.

Gartner’s Senior Research Director Bindi Bhullar rightly claims that this is good news for those looking to purchase iPaaS software. However, that is only a short term consideration. Even Bhullar admits: “They can capitalize on the evolving market dynamics by solving short-term/immediate problems today, while preparing to adopt another iPaaS offering from an alternative vendor as the expected market consolidation accelerates through 2023.”

Those currently searching for iPaaS software need to keep these market dynamics in mind during the vendor selection process. It’s possible that these conditions will mean disruption or discontinuance of software services in certain scenarios. We don’t necessarily agree with Gartner when they recommend buying products for the short-term and throwing the away once software support is terminated.

The mergers and acquisitions are certainly on their way, and we’ve already begun to see some of that over the last year. A couple of the more popular examples include Salesforce’s acquisition of MuleSoft and TIBCO Software’s buyout of Scribe Software. There were also several others including Google, Talend and Software AG from 2018.

Solutions Review has mapped the top integration solution providers for iPaaS, self-service data preparation, and enterprise application integration across a Venn diagram to make it easier for you to pick the best vendor.

Timothy King
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Timothy King

Senior Editor at Solutions Review
Timothy is Solutions Review's Senior Editor. He is a recognized thought leader and influencer in enterprise middleware. Timothy has also been named a top global business journalist by Richtopia. Scoop? First initial, last name at SR dot com.
Timothy King
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