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G00270939

Magic Quadrant for Enterprise IntegrationPlatform as a Service, WorldwidePublished: 23 March 2015

Analyst(s): Massimo Pezzini, Yefim V. Natis, Paolo Malinverno, Kimihiko Iijima, Jess Thompson, Eric Thoo,Keith Guttridge

Initially focused on point-to-point integration across cloud and on-premisesapplications, enterprise iPaaS offerings can now effectively target more-complex uses. This Magic Quadrant helps directors of integration assessproviders' ability to deliver offerings that meet current and evolving needs.

Strategic Planning AssumptionsBy 2017, in large organizations, at least 65% of new integration flows will be developed outside thecontrol of IT departments.

By 2018, the iPaaS market will further fragment, with no vendor exceeding 15% of the global iPaaScustomer base.

Market Definition/DescriptionIntegration platform as a service (iPaaS) is a cloud service that provides a platform to supportapplication, data and process integration projects, usually involving a combination of cloud-basedapplications, APIs and on-premises systems. iPaaS delivers some combination of capabilities thatare typically found in enterprise service buses (ESBs), data integration tools, B2B gateways,managed file transfer products and API management platforms. IT departments, line of business(LOB) developers, mobile application development (AD) teams, application teams and evenbusiness users (aka "citizen integrators") leverage these capabilities to develop, execute andmanage integration interfaces (or "integration flows") in the cloud.

iPaaS Functionality

iPaaS functionality typically includes:

■ Support for (and bridging between) a variety of connectivity protocols and data/messagedelivery styles

■ Data/message mapping and transformation

■ Data quality

■ Routing and orchestration

■ Adapters for cloud-based and on-premises applications, data sources and technologyenvironments

■ On-premises software agents to enable secure communication between on-premises systemsand the iPaaS environment

■ Adapter developer toolkits

■ Integration flow development and life cycle management tools

■ Integration flow management, administration and monitoring

■ API management

■ Reusable integration templates

■ Prepackaged integration flows ("cloudstreams")

As discussed in the Inclusion and Exclusion Criteria paragraph, not all of these capabilities arerequired for a cloud service to qualify as an iPaaS. At this stage, some of them are considered ashelpful optional capabilities (for example, data quality, API management, adapter developer toolkitsand cloudstreams), even if they may become more relevant as market demand evolves.

Although the functionality of an iPaaS is implemented by the provider through software technology,the ultimate iPaaS deliverable is a cloud service, not a software product. Therefore, this MagicQuadrant considers only companies that provide integration platforms in the form of public cloudservices, not as software products for on-premises deployments. However, the ability to deliveriPaaS functionality also in the form of equivalent on-premises middleware products is a capabilitythat buyers increasingly require and will likely become a necessary feature to compete in thismarket.

iPaaS Use Cases and Buying Centers

The most frequent use case for iPaaS is still what Gartner refers to as "cloud service integration"(CSI), which is the problem of integrating a combination of on-premises applications and data, SaaSapplications, and other cloud services (see "What IT Leaders Need to Know About Cloud ServicesIntegration: Proactively Address the Challenge"). However, over the past 12 months, use of iPaaSofferings to support scenarios such as B2B integration, API publishing and management, andmobile app integration (MAI) has notably expanded. Similarly, use of iPaaS offerings in the contextof certain types of on-premises integration projects has grown, and some examples of iPaaS use inInternet of Things (IoT) initiatives have also been manifested, albeit still rather sporadically.Therefore, iPaaS is more and more perceived by user organizations as a versatile option that canaddress a variety of use cases and not just as a point solution for specific issues.

Because of their historical characteristics of ease of use and rapid integration enablement, iPaaSofferings tend to be used to support integration issues requiring an adaptive approach focused onshort time to deployment. iPaaS offerings are less commonly used in traditional systematic

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integration that focuses on enterprise consistency, quality of service (QoS) and long-termmaintainability (see "Adopt an Adaptive Approach to Effectively Support Rapid IntegrationRequirements"). iPaaS characteristics also match small and midsize businesses' (SMBs') integrationrequirements. Therefore, iPaaS is currently a prevalent option for this market.

In large organizations, iPaaS characteristics fit well with CSI or MAI projects where the use of ahigh-end, on-premises integration platform, even if already in place, would not be easy to justify, forreasons such as time to integration, cost of entry, deployment complexity, lack of local skills, andlack of adapters for specific SaaS applications.

These organizations leverage iPaaS for LOB, subsidiary and/or departmental projects, often in"Mode 2" initiatives in the context of bimodal IT strategies. However, in a growing number of cases,the iPaaS role is being elevated to more strategic, "enterprisewide" relevance in the wake of "cloudfirst/mobile first" or digital business strategies, often in "Mode 1" projects framed in bimodal ITstrategies (see "New Integration Strategies and Technologies Target the Digital Business").

This implies that in large organizations, iPaaS buyers often are not necessarily central ITdepartments (typically through the enterprise integration competency center [ICC]). They can beLOB managers, subsidiary directors or leaders of other decentralized organizational entitiesengaged in IT projects not under the control of the central IT department. In some cases, evenindividuals — not necessarily IT professionals working for some form of IT department — turn toiPaaS to address simple, often one-off personal integration issues (for example, loading Twitterfeeds into Google Docs spreadsheets), thus assuming the role of "citizen integrators" (see"Embrace the Citizen Integrator Approach to Improve Business Users' Productivity and Agility").However, as iPaaS ascends to a more strategic role, central IT departments are increasingly beinginvolved in iPaaS purchasing decisions, and in a growing number of cases, ICCs are proactivelydefining iPaaS strategies to anticipate LOBs', application teams' and business users' requirementsfor adaptive integration.

This often leads ICCs toward combining iPaaS offerings with their established on-premisesintegration platforms in what Gartner calls hybrid integration platforms (see "Why There's a MoveToward Hybrid Integration Platforms" and "How to Use Hybrid Integration Platforms Effectively").This trend also often implies that ICCs redefine their role from "integration factory" toward"integration facilitator" for do-it-yourself integration requirements (see "The Integrator's Dilemma:Can a Bimodal Approach Balance Integration Agility and Control?"). This will likely determine anevolution of iPaaS offerings toward more extensive support for hybrid, distributed cloud/on-premises deployment models and greater focus by ICCs on regaining control of the organizations'iPaaS strategies.

Most iPaaS providers target enterprise requirements (for example, integration between Salesforceand SAP ERP). Some players (for example, CloudWork, elastic.io, IFTTT, Kevy, OneSaas, Zapier)instead concentrate on serving citizen integrators' needs. In this Magic Quadrant, we consider onlyiPaaS providers targeting enterprise integration challenges — hence, we call it Magic Quadrant forEnterprise iPaaS.

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However, many iPaaS vendors are planning to add citizen integrator capabilities to their offerings.Therefore, in the future, the distinction between these two classes of providers may blur.Consequently, they may enter in more-pronounced competition than today, especially in themidsize/large-organization and large-organization segments, where enterprise iPaaS may have anedge because of its greater support for on-premises applications and for central IT/ICCrequirements.

iPaaS Market Trends

The iPaaS market is poised to dramatically grow over the next five years because of several factors,including:

■ The explosion of CSI, MAI, API and IoT requirements

■ The emergence of the adaptive integration approach and citizen integrators — for whomtraditional integration platforms are generally unsuitable

■ Adoption by SMBs that so far have often been unwilling to embrace integration middlewarebecause of its high cost and complexity, but are now interested in iPaaS offerings due to theirlow entry cost and ease of use

■ Entry in the market of megavendors and influential software players that can deploy powerfulmarketing and sales machines to sustain their iPaaS ambitions

This expected growth and increasingly strategic relevance of iPaaS have attracted investments fromstartup companies, megavendors, established on-premises middleware players, providers of otherforms of platform as a service (PaaS), and SaaS players. All these vendors are eager to get their fairshare of this new, fast-growing market and, most importantly, to establish control in userorganizations' crucially strategic next-generation integration infrastructure.

This is increasingly leading to an overcrowded and confusing market where competition will befierce and providers will struggle for awareness. During the past 12 months, the net number ofplayers in the market has grown considerably. Currently, Gartner has on record more than 30 iPaaSproviders. The rapid appearance and disappearance of new providers, retrenchment into vertical orgeographic niches, and mergers and acquisitions will be the norm over the next three to five yearsuntil the market reaches a more stable state (see "Predicts 2015: Private, Public and Hybrid: PaaSAdvances").

The inevitable process of market consolidation and the entry of large players imply that,increasingly, iPaaS will be delivered as an integrated functionality of broader PaaS suites, SaaSapplications and cloud service brokerage (CSB) offerings. Independent and stand-alone iPaaSofferings will remain in the market owing to users' requirements for neutral integration platformsbridging the ecosystem of the power players (Amazon, Google, IBM, Microsoft, Oracle, Salesforceand SAP). Nonetheless, the expected market turmoil suggests that over the next 12 months,organizations should adopt a tactical approach to iPaaS purchases, especially when dealing withnew market entrants.

The growing versatility and strategic relevance of iPaaS put these offerings on a collision coursewith traditional on-premises integration middleware. Established ICCs (typically loyal to their


incumbent on-premises integration platforms) may be in conflict against new LOB/departmentaliPaaS buying centers and citizen integrators (which are willing to adopt iPaaS for its greater agilityand lower cost). However, during the next three to five years, this tension will gradually be resolved,because of the emergence of hybrid integration platforms and bimodal approaches that will:

■ Combine iPaaS and traditional integration middleware characteristics

■ Enable multiple deployment models

■ Empower citizen integrator, adaptive and traditional approaches

■ Support a wide range of business requirements


Magic QuadrantFigure 1. Magic Quadrant for Enterprise Integration Platform as a Service, Worldwide

Source: Gartner (March 2015)

Vendor Strengths and Cautions

Adaptris

Adaptris is a U.K.-headquartered company with customers around the world and with a long historyof facilitating application integration, first with adapters for integration brokers (hence the name) and


now with a modern B2B-focused iPaaS offering. In addition, the company offers integrationbrokerage managed services (an outsourcing offering to interconnect business partners andmanage the document exchange between them).

Cirrus, the company's main iPaaS offering, has been on the market since 2001, and it can bedeployed on-premises or in the cloud. The key design philosophy of the Interlok framework, whichCirrus implements, is the ability to apply the right amount of integration technology in theappropriate place using common standards.

Strengths

■ Adaptris has a mature iPaaS offering using well-proven technology but designed for the cloud,with more than 1,000 customers worldwide (the third-largest customer base among theproviders in this Magic Quadrant), especially in the farming and "agrifood" industry but also inseveral other industries. Adaptris' model scales well, and the company is well-accustomed toworking with large-enterprise clients.

■ Selling iPaaS and integration brokerage together, Adaptris is well-positioned to take fulladvantage of the projected growth of B2B APIs.

■ Adaptris' business model is well-proven and works well internationally. The recent co-sellingand co-marketing global partnership with SAP for the agrifood vertical validates the company'svision of scaling up its international business via a variety of sales channels.

Cautions

■ The lack of significant marketing activities has impaired the company's growth in the past years.

■ Despite Cirrus having obvious strengths across several verticals, the offering has mainly beensold in the farming and agrifood industry. Adaptris' vision and overall viability is still toodependent on this vertical.

■ Adaptris' position and growth in the future will depend on sharpening marketing and salesstrategies, and on getting innovative traction outside of the home vertical. This is in line withAdaptris' business model and technical characteristics, but it needs much more substantial andeffective planning to have some chance of being executed.

Attunity

Founded in 1988 and headquartered in Burlington, Massachusetts, Attunity is a provider of dataintegration technology that enables access, sharing and distribution of data across heterogeneousenterprise platforms, organizations and the cloud.

Attunity's CloudBeam is a subscription-based cloud service, offered through the Amazon WebServices Marketplace since 2013, for loading and synchronizing data involving on-premises DBMSsand Amazon's Redshift, Elastic Compute Cloud (EC2) and Relational Database Service (RDS)environments.


Strengths

■ Time to integration and the pricing model are cited by references as points of value for usingAttunity CloudBeam for data movement and synchronization involving on-premises DBMSs andAmazon's Redshift.

■ With a customer base of approximately 150 organizations (two-thirds of which were added inthe past 12 months), CloudBeam attracts midsize and large enterprise businesses that areadopting cloud data management capabilities.

■ Recognition for business longevity and proven on-premises capability for change data capture/replication is spurring usage of CloudBeam to enable data consistency and augment cloud-related data sharing and analytics support.

■ Reference customers praise the responsiveness of Attunity's technical support, which aids userproductivity and incident resolution.

Cautions

■ Attunity CloudBeam appeals only to targeted integration needs involving Amazon environmentsand does not articulate a vision toward generalized integration, orchestration of compositeapplications and API publishing and management. Attunity is in the process of expandingplatform support to other cloud service providers, as well as integrating CloudBeam withAttunity Maestro for central management of integration flow and release automation.

■ The mind share of Attunity's recently evolved capabilities remains low in this market, indicatedin its limited appearances in iPaaS competitive evaluations.

■ Uneven throughput performance is reported at times when delivering data of high to extremebulk volume to Amazon Redshift, although batching the workload provided relief where tuningmay be required to optimize performance for data integration.

■ Customers seeking to ease onboarding of their customers (by offering integration services usingCloudBeam) and operations management would like Attunity to provide simpler tools fordeployment and ongoing monitoring of integration tasks.

Celigo

Celigo, a U.S.-based integration technology and professional services company, entered the cloudservice integration platform market in 2008 when it released its Celigo Integrator iPaaS and anassociated set of cloudstreams, including one to integrate Salesforce to NetSuite.

Celigo Integrator provides data mapping, data quality, a range of connectivity options and a rangeof adapters (primarily to SaaS and other cloud services). In addition, Celigo sells a variety ofNetSuite-centric cloudstreams (SmartConnectors) and packaged composite applications(Productivity Apps) that "embed" the company's iPaaS.


Strengths

■ Over 600 organizations have purchased Celigo offerings to enable a wide range of NetSuiteintegration scenarios. Of these, about 100 to 120 directly procured the Celigo Integrator. Theremaining clients use one or more cloudstreams/packaged composite applications.

■ Clients mention ease of use and developers' productivity, support for citizen integrators, deepintegration with NetSuite (the adapter natively runs in the NetSuite environment), prepackagedintegrations, availability/scalability and strong professional services as the most notable aspectsof the Celigo offering.

■ In 2015, the company plans to improve the cloud characteristic of the platform (autoscaling,tracking, API access for provisioning, monitoring and management), extend the transformation/mapping functionality, add an orchestration feature and increase the number of adapters,SmartConnectors and Productivity Apps.

■ Celigo plans to extend its strategic sales and marketing focus on Salesforce, for which thecompany roadmap includes appropriated extensions to Celigo Integrator, specificSmartConnectors and the same Productivity Apps now available for NetSuite (integration withMicrosoft Excel and Office 365 and with Google Gmail, Sheets, Calendar and Contacts).

Cautions

■ So far, the company's undivided focus on the NetSuite environment has made Celigo Integratorof limited interest for organizations that have not adopted such SaaS applications. Its limitedcommercial presence in EMEA and Asia/Pacific makes the Celigo iPaaS scarcely relevant fororganizations based in these regions.

■ Clients mention the mapping feature and a certain sluggishness of the development andmanagement environment as areas that need improvements. The current lack of API access tothe provisioning, monitoring and management capabilities of the platform limits appeal to thirdparties (for example, SaaS providers) wishing to integrate an iPaaS in their offerings. Lack of anon-premises deployment option limits interest in Celigo Integrator among organizations with"ground to ground" integration needs.

■ Plans for setting up distributors in the U.K. and Australia may be insufficient for significantlyimproving Celigo's ability to serve user organizations in EMEA and Asia/Pacific. Because Celigohas a system integration division, even though it is separate from the iPaaS division, potentialsystem integrator partners may perceive Celigo as a competitor rather than as a possible ally.

■ Celigo's long-term plans to expand its focus beyond the traditional CSI sweet spot includesupport for API management, MAI, the IoT and analytics/big data integration. Nonetheless, theinterest of organizations looking for a highly versatile iPaaS capable of addressing a variety ofuse cases is likely to be minimal over the next 12 months.


Cloud Elements

Cloud Elements is a U.S.-based company founded in 2012 that provides an innovative APIintegration, aggregation and management service in the form of an iPaaS and associatedprepackaged integrations.

Cloud Elements' approach is to provide a set of "canonical" RESTful APIs (called Hub API services),each covering a specific use case (for example, CRM, documents or finance). Each API is, in turn,premapped into multiple corresponding SaaS applications (for example, Salesforce, SugarCRM andZoho CRM for the "customer" Hub) via proper customizable prepackaged integrations (called"Elements").

Strengths

■ The Cloud Elements offering is designed to reduce the complexity of connecting into specificSaaS applications: A single API gives access to the Hub functionality and virtualizes the back-end service. All the necessary mappings are predefined (but can be customized) by CloudElements, and the relevant SaaS API life cycle management issues are managed behind thescenes by the company. In this way, an application consuming the Hub API is decoupled fromthe back-end services, thus reducing implementation and management complexity andenabling service replacement.

■ The offering is easy to try and buy: Users can try it for free, and then it is priced according toseveral metering models, based on usage. This easy accessibility has helped Cloud Elementsbuild up an installed base of more than 300 customers in less than two years.

■ Cloud Elements offers an already quite rich set of capabilities, which the company plans toextend to more cloud services over the next 12 months. Currently, it provides Hub API services(CRM, Finance, Marketing, Help Desk, Messaging, Ecommerce and Documents) and about 35Elements, including the most popular SaaS and cloud services (for example, Salesforce,NetSuite, Microsoft Dynamics CRM, Box, Dropbox and SharePoint). Clients can develop andpublish additional custom Elements and Hubs to create their own custom catalogs of APIconnectors.

■ Cloud Elements offers a single-edition, unified platform that uses the same code, whetherdelivered through the public or private cloud or installed on-premises. This enables clients tohave a high degree of flexibility across multiple deployment models, and it also serves theneeds of cloud providers (such as SaaS, infrastructure as a service [IaaS] and PaaS players),which can leverage the multitenant connectors.

Cautions

■ Cloud Elements, although maturing rapidly, is a very young company, with a limited track recordin the industry and exposed to obvious viability concerns, which limit its attractiveness for risk-averse user organizations.

■ More powerful, targeted and sophisticated marketing and sales strategies are necessary to takeCloud Elements out of startup mode.


■ Most of current Cloud Elements customers are in the U.S., and the company's internationalstrategy still has to take off.

■ Cloud Elements' approach of providing a super API-based integration model limits its ability tosupport use cases for which an API approach is not appropriate, thus making the platform lessappealing for organizations looking for a highly versatile iPaaS.

Dell Boomi

Dell Boomi is a Dell Software Group business unit providing the Dell Boomi AtomSphere iPaaS, theDell Boomi master data management (MDM), a cloud MDM hub service and the AtomSphere-basedDell Boomi API Management. The business unit was formed after the November 2010 acquisition ofBoomi, one of the pioneers in iPaaS.

AtomSphere provides data cleansing, validation and transformation; content-based routing; B2Bprotocols and formats; trading partner management; messaging, Web services and REST support;process orchestration; and API management capabilities.

Strengths

■ In 2014, Dell Boomi experienced strong revenue growth exceeding 60%, with a customer baseof over 2,800 midsize and large multinational organizations in multiple industries andgeographies. A notable contribution came from partners, including several primary SaaSproviders that incorporate AtomSphere in their offering. Despite such growth, customersmention quality of support and ease of doing business as positive aspects of their relationshipwith Dell Boomi.

■ The offering provides rich CSI, B2B integration, on-premises integration, API and MAIfunctionality; crowdsourcing and automation to facilitate development, test and operation;cloud and on-premises deployment support; advanced cloud capabilities; and QoS features.Clients praise as positive traits of the platform its fast learning curve, developers' productivity,reliability, scalability, ease of operation and versatility.

■ Dell Boomi plans to augment its appeal to a broader set of potential clients by: expanding itsEMEA, Latin America and Asia/Pacific presence; extending partnerships with key SaaSproviders, as well as global and specialty system integrators; and targeting opportunities inhealthcare/life science, big data and IoT jointly with other Dell business units.

■ In addition to several incremental improvements, the company roadmap targets more advancedand broader scenarios by including: richer API management; IoT capabilities; new SaaSadapters; and support for the Docker containerization technology and for the Swaggerspecification for RESTful API definition.

Cautions

■ Despite the opening of a data center and the establishment of a direct sales and supportorganization in Europe, Dell Boomi commercial and support capabilities outside of the U.S. may


be insufficient to enable rapid expansion abroad and to support the needs of organizations thatoperate internationally.

■ Clients mention configuration management, fine-grained security and role management,availability of adapters for second-tier on-premises packaged applications, and advancedtrading-partner management as areas of technical improvement.

■ Clients cite as issues that need to be tackled by Dell Boomi the limited bandwidth of itsprofessional services organization, as well as difficulties in finding experienced AtomSphereintegration developers (both from Dell and external service providers).

■ The Dell Boomi technical roadmap and go-to-market strategy paid little attention so far tocitizen integrators, a phenomenon still in its infancy, but with potentially disruptiveconsequences.

Flowgear

Flowgear is an iPaaS vendor based in Johannesburg. It was spun out of Global Micro Solutions, alarge South African managed cloud service provider, in 2010.

Flowgear iPaaS, available since 2011, offers a public-cloud-based offering that allows users tolocate their assets and workloads in the U.S., Europe or Africa. The U.S. and Europe regions aredelivered by Microsoft Azure (PaaS) while the Africa region is operated by its parent company,Global Micro Solutions (IaaS). Flowgear uses Azure data centers for development and for disasterrecovery, while production instances can run in both Azure and Global Micro Solutions datacenters. Flowgear supports both SaaS and on-premises integration, with the latter being facilitatedthrough an on-premises software agent called a Flowgear DropPoint.

Strengths

■ Flowgear offers CSI and B2B integration capabilities, a rich set of adapters targeting local andinternational SaaS providers, local data centers, and the support of Global Micro Solutions,making it an attractive proposition for organizations in South Africa and neighboring countries.Flowgear plans to leverage the support of Global Micro Solutions to expand outside of SouthAfrica this year, with appropriate alignment of marketing participation at European and NorthAmerican-based events.

■ Clients praise Flowgear's ease of development, management, administration and monitoring; itsservice reliability; its iPaaS smooth version transition; and its proactive and transparentcustomer relationship approach.

■ Flowgear plans to improve the developer experience by creating an improved HTML5-based UIthat will allow for real-time collaboration, a Microsoft Visual Studio plug-in for improved .NETdevelopment, new nodes for alternative development languages including JavaScript, and aconnector store to enable trading of connectors and workflows.

■ Flowgear's platform roadmap includes improvements to API management, securityenhancements, improved deployment options for on-premises DropPoints, and mobile


monitoring and administration, which will enable the provider to target a broader range of usecases.

Cautions

■ Flowgear's direct customer base includes approximately 30 organizations, primarilymanufacturing, retail, financial services and healthcare SMBs. This is a good achievement for acompany operating primarily in one country, but it also implies the platform has been proven inonly a relatively limited set of use cases.

■ The company is very small, with a strong focus on clients in South Africa, which enables it toprovide high levels of customer service while continuing to develop the platform. Whileinternational system integrator partners are not up to speed, it will be difficult for the companyto expand outside of South Africa and maintain the levels of service, while at the same timedelivering on the technical roadmap.

■ An area of improvement cited by clients was a lack of documentation that often resulted in asupport call. While the support was rated as very good, it was felt that good documentationwould have improved early understanding of the platform.

■ Due to Flowgear's strong focus on application integration, the platform currently providesmessaging connectivity only to Microsoft Message Queuing, which limits its capabilities forenterprise connectivity, some mobile scenarios and some IoT use cases.

Fujitsu

Fujitsu RunMyProcess, one of Fujitsu's cloud service offerings, provides combined iPaaS andbusiness process management platform as a service (bpmPaaS) capabilities. The offering derivesfrom the 2013 acquisition of RunMyProcess, a small French cloud service provider and one of thepioneers in bpmPaaS.

The RunMyProcess cloud native platform is available globally and runs on Amazon Web Services orthe Fujitsu IaaS platforms (S5). It provides FTP, Web services, and REST support as well asconnectors to on-premises applications/data sources and a variety of cloud services. It alsosupports process modeling and orchestration; composite applications; and adaptive applicationdevelopment for Web and mobile endpoints.

Strengths

■ The acquisition by Fujitsu, one of the Japanese megavendors, improved RunMyProcess'business viability and increased its enterprise credibility in terms of QoS in data centeroperations, system infrastructure/IaaS, system integration resources, variety of solutionofferings, and partner ecosystems. The acquisition also expanded the RunMyProcess marketreach to large enterprises outside EMEA, its original market, across multiple regions andmultiple industry segments. These factors helped to boost its customer installed base (withabout 180 large enterprises added since the acquisition, thus bringing the total to about 500)and increased customer satisfaction.


■ In Fujitsu's cloud proposition, RunMyProcess is a strategic component that empowers LOB andcitizen integrators, in line with the company's "human-centric innovation" vision.

■ Clients praise RunMyProcess' responsive support, deep commitment to the customer'sbusiness success (not only to technology implementation), highly-skilled resources andtrustworthy operation. The offering provides more than 2,000 connectors, cloud-to-groundintegration support via a secure enterprise connector, cloud-based business processmanagement capabilities; and high-productivity and high-control application developmenttools, also supporting mobile devices.

■ The company roadmap for 2015 includes: more API-centric connectors for SaaS applications,more reusable integration templates, marketplace enhancement, more IoT capabilities, andsupport for both citizen developers and citizen integrators. Also foreseen over the next 12months are incremental improvements in control capabilities of IaaS layer operation.

Cautions

■ RunMyProcess' clients are primarily in EMEA. Adoption in other regions is still a fraction of theoverall installed base.

■ The RunMyProcess offering is currently available only as cloud services and the company doesnot plan to provide its enabling software on-premises, thus limiting the platform appeal fororganizations looking for a highly versatile iPaaS.

■ Although after the acquisition, Fujitsu significantly increased the number of RunMyProcessengineers across multiple regions, the company may still not be able to always meet, in aresponsive manner, customers' request for RunMyProcess skilled professional serviceresources.

■ RunMyProcess support for large and complex extraction, transformation and loadingcapabilities and non-API-based integration is a low priority, given the company's focus onbusiness-process-oriented integration requirements.

IBM

IBM's iPaaS offering is WebSphere Cast Iron Live, delivered through a shared-everythingmultitenant architecture deployed across multiple data centers operated by SoftLayer (IBM's IaaScompany). The WebSphere Cast Iron Live offering, currently in version 7.0, consists of two editions:WebSphere Cast Iron Live Standard Edition for more basic cloud integration scenarios andWebSphere Cast Iron Live Enterprise Edition, which adds enterprise connectors, data quality toolsand enhanced development and management capabilities. There is also WebSphere Cast Iron LiveWeb API Services, which focuses on API management based on the same underlying technology.

The offering is also available as single-tenant on-premises software, called WebSphere Cast IronHypervisor Edition, and a hardware appliance, called WebSphere DataPower Cast Iron ApplianceXH40.


Strengths

■ Cast Iron Live provides a wide range of connectors and a large number of template integrationprocesses to accelerate the most common CSI scenarios. In addition, the offering featuresWeb-based development tools for more complex scenarios, including features for data quality,transformation and mapping, orchestration, and API management.

■ Integration processes created for Cast Iron have several deployment options, ranging from CastIron Live instances in North America, Europe and Asia/Pacific to on-premises Cast Iron insoftware and hardware form, providing a write-once-run-anywhere capability that is required fora true hybrid integration platform.

■ In February 2015, at InterConnect, after a year of heavy investment and executive focus, IBMannounced a new vision for PaaS-based integration, combining capabilities for CSI, applicationand data integration, API management, and B2B, based on the "cloudification" andcombination, under homogeneous development and management tooling, of tried and testedintegration technologies (IBM Integration Bus, IBM InfoSphere DataStage, Sterling B2BIntegrator, WebSphere DataPower Gateway and others). These capabilities will support avariety of role-based user interfaces and multiple deployment options (cloud-based and on-premises), including the Cast Iron offering successor (informally referred to as "Cast IronV.Next"). This evolution, when delivered, will provide a big step forward in IBM's iPaaScapabilities.

Cautions

■ Cast Iron Live's paid customer base is smaller, and its growth rate for 2014 much lower thanthat of its leading competitors, which may be a concern for some risk-averse prospects.

■ Awareness of the platform is still low, and although IBM has created a digital sales channel andimproved digital marketing over the past 12 months, the mainstream IBM direct salesorganization is still oriented toward big-ticket licensed-software sales, and marketing actionshave not been focused on Cast Iron Live, thus impacting opportunities for adoption growthduring 2014.

■ With the recent announcements at IBM InterConnect of hybrid integration services in Bluemix,IBM Integration Bus as a managed cloud service and the Cast Iron V.Next platform — all toarrive in 2015 — new IBM customers will face the challenge of selecting from three cloud-basedintegration offerings.

■ Cast Iron Live clients continue to mention inconsistencies between the on-premises Eclipse-based tool and the Web-based tool, performance and reliability issues with the on-premisessecure agent, and service availability of Cast Iron Live as areas of improvement, although initialinformation for Cast Iron Live version 7 is of improved availability and quality.


Informatica

An independent software company founded in 1993, Informatica is a recognized provider for dataintegration, data quality, data masking and master data management among the variety of tools inthe Informatica Platform. Informatica has its roots in providing on-premises data integrationtechnologies, with PowerCenter as an established flagship product.

The Informatica Cloud iPaaS leverages the Informatica Platform to provide broadening dataconnectivity and deliver cloud services that include data integration, data quality, applicationintegration process automation, APIs, data management support, composite application support, acollaborative developer marketplace, and templates for reusable integrations addressing enterprisedemands.

Strengths

■ Approximately 3,500 organizations use Informatica's iPaaS, reflecting a strong share of thismarket and a growing traction with both small and large enterprises across SaaS and PaaSecosystems including Salesforce, Amazon Web Services, Workday, NetSuite and others.

■ Informatica's iPaaS leverages its established on-premises data integration technology(PowerCenter) for cloud and on-premises integration, hybrid approaches, and reusable artifacts,along with APIs to extend and embed the platform. Process and application integrationcapabilities introduced in the past year extended applicability to real-time processes and API-oriented iPaaS requirements.

■ Addition of cloud data preparation to support nontechnical roles, alongside plans for increasingthe ease of ingesting and manipulating data, including big data sources, positions InformaticaCloud to enable profiling, machine learning, and interactions among Web, IoT and mobileenvironments.

■ Expanding market reach and the skill resource pool via implementation partners andindependent software vendors (ISVs) attracts organizations that seek iPaaS to expand orcomplement their enterprise standard integration infrastructures and enterprise informationmanagement initiatives.

Cautions

■ While adoptions and deployments frequently focus on Salesforce integration and data-orientedscenarios, mind share for Informatica's iPaaS for comprehensive orchestration flows andprocess integration (released in late 2013) remains less although increasing.

■ Users express desires for reduced duration in maintenance-related service downtime forscheduled updates and releases.

■ In competitive situations, some small and midsize prospects express concerns about high pricepoints relative to alternative offerings in this market.


■ Some of the newer services in Informatica Cloud target requirements such as test datamanagement support, but do not handle broad usage scenarios; customers and buyers shouldcarry out thorough evaluation based on their needs.

Jitterbit

Founded in 2004, Jitterbit originated as a software provider for integration capability to support datarequirements that involve enterprise applications, DBMSs and Web services environments. In 2010,Jitterbit began providing Jitterbit Enterprise Cloud Edition, an iPaaS rendition of its on-premisesequivalent product, offered via Amazon EC2's cloud infrastructure.

Release of the Jitterbit Harmony platform in 2014 provided full multitenancy support and extendedapplicability for integration of diverse cloud, mobile, social and on-premises environments, and lifecycle management of integration projects and processes. Harmony hub solutions for ISVs and SaaSproviders are offered to enhance market channels and leverage of prebuilt templates for CSI.

Strengths

■ Rapid time to deployment is exhibited in reference users' ability to develop, deploy and shareAPIs that support integration with packaged applications, diverse DBMSs, and a wide range ofpopular SaaS applications.

■ Harmony sales, following on from customers' use of a free edition of the iPaaS offering,reflected a rapid increase of the customer base to about 200 companies (over a total of about500, including previous-generation offerings) and growth potential through prospectiveopportunities with over 20,000 nonpaying iPaaS users. Recognition for good usability andlicensing simplicity indicate a positive perception of value relative to cost.

■ Users favor the quality of customer experience and Jitterbit's ability to understand theirbusiness needs and deliver appropriate assistance.

■ Jitterbit's positioning for converging integration approaches in a single platform for dataintegration, process automation and API management aligns to market demand. Synergybetween Jitterbit's iPaaS and process automation tooling enables business process or SaaSowners to connect and automate business processes between applications from vendors suchas SAP, Oracle, Salesforce, Autodesk and Microsoft (Dynamics).

Cautions

■ As many prospects have yet to become familiar with the Harmony platform, awareness ofJitterbit's iPaaS capability remains limited among competitive evaluations.

■ While Jitterbit's iPaaS has an increasing mind share in midmarket businesses, its appeal forcomplex implementations among enterprise buyers remains limited. The vendor sets out tosupport an extensive enterprise workload, scaling Harmony toward its existing largedeployment base (which includes nonpaying users).


■ Usage experiences indicate requirements for improvements in self-help functional guidance andonline best practice documentation.

■ While use of Harmony for integration of cloud services and interenterprise data sharing is on therise, the offering's evolution does not focus toward emerging, more comprehensive scenarios ofprocess orchestration, IoT and enterprise information management.

Microsoft

The initial release of Microsoft's Azure BizTalk Services (ABS) contained a limited set of functionalityfocused primarily on integrating SaaS offerings to on-premises applications and supporting B2Bintegration. Microsoft's growing focus on mobile and cloud services led the company to make asignificant change in its iPaaS strategy.

The BizTalk Services technology is being refactored into a set of independent services, which willbe components in a new integrated application platform that will be released in 2015. The platformincludes Web and mobile services, a cloud orchestration engine, an application service ecosystem,API management, a hosting environment and BizTalk application services (ABS refactored). Theoriginal version of ABS will remain available for an unspecified period of time.

Strengths

■ Gartner estimates that Microsoft added more than 2,300 ABS deployments (in 700organizations) in its time since general availability (November 2013) — a notable track record,from a business execution perspective. However, Microsoft did not specify the number ofclients that are in production.

■ Microsoft views interface development to be a software development project. Its initial strategyfor executing on this vision was the integration of the on-premises BizTalk Server integrationplatform with Visual Studio and Team Foundation Server — Microsoft's widely used softwaredevelopment tools. The resulting platform combined with BizTalk Server's low cost attractedmore than 12,000 organizations to become customers. The integrated application platform isMicrosoft's strategy for executing on its vision in the era of a cloud-centric, API-basedeconomy.

■ Because of the worldwide locations at which Microsoft Azure is deployed, there are nogeographical limitations for the deployment of interfaces implemented using ABS.

■ Reorganization and new leadership at Microsoft appears to be positive for the new BizTalkservices. Since taking over, new CEO Satya Nadella has made support for cloud deployment ahigh priority.

Cautions

■ The new BizTalk service offering is a dramatic change rather than an evolution of productarchitecture. ABS users will need to migrate their interfaces (some artifacts port directly, andsome do not) to take advantage of the integrated application platform. For now, ABS users will


not be forced to move. However, Gartner believes that eventually, support for ABS will beterminated.

■ The new BizTalk services and the tooling to support migrations from ABS and BizTalk Server tothe new BizTalk services will be available in early 2015. The amount of assistance required tomigrate interfaces from current platforms (ABS and BizTalk Server) has not yet been evaluatedby rank-and-file users.

■ Microsoft plans include support for citizen developers. Although the new BizTalk servicescontain the features to support LOB integration initiatives, it remains to be seen if those services— delivered within an integrated application platform — cause issues in enticing organizationslooking for stand-alone iPaaS.

■ Microsoft's customers reported challenges with sales support and a lack of awarenessregarding the new direction for ABS. This lack of awareness in the market is also shown byminimal client inquiries since the new direction was announced in December 2014.

MuleSoft

Founded in 2006, MuleSoft is a provider of software subscriptions to iPaaS and on-premisesintegration technology (some of it open-source).

Its Anypoint Platform includes support for SOA, SaaS integration and API management. CloudHubis the iPaaS rendition of this platform. CloudHub is used by a spectrum of organizations (from smallto multinational) worldwide, in several verticals including social Web properties, high-techmanufacturing, airlines, pharmaceuticals and automotive.

Strengths

■ Through its growing portfolio of offerings, including more than 125 adapters for cloudendpoints, 70 integration templates (cloudstreams) and API management functionality, MuleSoftdemonstrates its business vision by providing solutions for today's most frequent integrationproblem — integrating cloud and on-premises endpoints.

■ Awareness of MuleSoft has grown quickly in the past couple of years, and there are now over360 paying enterprise customers. In 2014, MuleSoft's cloud-specific revenue accounted forone-third of its total revenue, with the split being 60% North America, 20% EMEA and 20%Asia/Pacific.

■ The open-source components of its portfolio have prompted more than 16,000 organizations todownload and install its technology, making it easier for organizations to find skilled resources.

■ MuleSoft is positioned as a Leader in Gartner's 2014 Magic Quadrant for On-PremisesApplication Integration Suites. Its track record, credibility and leadership in that market is aspringboard for success in iPaaS, given that the technology is the same and the open-sourcesoftware business model is akin to iPaaS.


Cautions

■ MuleSoft marketing message focuses on the ability of its technology to support enterprise-scale(rather than departmental) use cases. This puts MuleSoft at a disadvantage when businessusers, departments/divisions and small businesses are searching for iPaaS that such users canapply to projects that must be completed quickly. It is beginning to address this shortcomingthrough offerings such as Anypoint Data Gateway.

■ MuleSoft is currently behind other leading iPaaS providers in its support for B2B integration.However, a comprehensive offering that includes support for B2B transports (such as AS2 andFTPS), formats (such as X12 and EDIFACT) and trading partner management is expected to bereleased soon.

■ MuleSoft's early on-premises offering has a user experience oriented toward interfacedevelopment technicians. The company is now rolling out offerings aimed at LOB users andcitizen integrators. But it will be challenging for the Anypoint platform to catch up to itscompetitors that were designed to attract these personas from the beginning.

■ Because MuleSoft is a private company, potential customers may be swayed by the fear,uncertainty and doubt that will undoubtedly be used by larger, public competitors.

SAP

SAP's iPaaS offering is SAP Hana Cloud Integration (HCI), part of the broader SAP Hana CloudPlatform PaaS proposition. It shares some components of SAP's on-premises integrationtechnology (SAP Data Services and SAP Process Orchestration mapping), but also uses open-source software (for example, Apache CXF and Camel) and new cloud-native technologies.

The platform leverages the leading-edge SAP Hana in-memory DBMS as an integrated feature. HCIis designated to play a critical role in SAP's cloud strategy by enabling integration between its SaaSand on-premises packages, mobile apps and IoT use cases.

Strengths

■ In 2014, the HCI installed base grew from a few tens to approximately 160 customers and 150enabled partners. In the same time frame, SAP released three more HCI editions (supportingany-to-any integration) in addition to the Application Edition enabling only SAP integration. Thecompany also significantly extended HCI functionality by providing: BPMN 2.0 support; Eclipseand Web-based development, monitoring and management tools; several cloudstreams;enhanced security; integration with SAP Solution Manager (on-premises) for monitoring andalerting; additional connectivity options; an adapter software development kit (SDK); metadatarepository and other functionality. SAP also put in place a certification process for partners'integration content and achieved ISO 27001 certification for security.

■ The native in-memory computing architecture enabled by the SAP Hana database is adistinctive characteristic of SAP HCI, which opens opportunities for notable innovation (forexample, massive IoT integration initiatives). In addition, clients cite developers' productivityand easy IT operations, smooth integration with on-premises SAP ERP, availability of multiple


cloudstreams, powerful transformation, fast innovation pace, fluid version upgrades andreliability as notable characteristics of HCI.

■ HCI delivery as an embedded component of multiple SAP cloud offerings, partial compatibilitywith SAP's established integration platforms (SAP Data Services and SAP ProcessOrchestration) and the growing number of cloudstreams potentially make the platform thedefault option for SAP clients. New HCI editions and planned functionality may also appeal toorganizations needing an iPaaS for a range of use cases.

■ HCI's roadmap for the next 12 months includes: rule-based dynamic autoscaling; APImanagement; additional B2B formats/protocols and trading partner management; MAIcapabilities; a high-performance messaging layer in support of IoT, machine-to-machine andbig data scenarios; an intelligent mapping advisor powered through crowdsourcing andcollaboration; compatibility with the on-premises SAP NetWeaver Process Orchestration;additional adapters (for example, SuccessFactors, Ariba and S/4HANA) and cloudstreams;DevOps APIs; Cloud Foundry and OpenStack support; and additional integration with SAPSolution Manager. Deployment on-premises and on third-party IaaS offerings is foreseen forlater.

Cautions

■ Despite its significant technical improvements, SAP HCI remains a "well-kept secret" that mostuser organizations, including many loyal SAP clients, are unaware of. SAP sales and marketinghave been so far primarily focused on the most loyal SAP partners and clients and have not yetreached out to the general market. This focus limits its appeal for non-SAP-centricorganizations.

■ Clients mention lack of autoscaling, standardized disaster recovery (now available only in thecontext of specific offerings, such as Financial Services Network, and requiring specificarrangements with SAP for generic use cases), limited hybrid deployment architecture support,minimal integration artifact life cycle management tools, lack of advanced API managementcapabilities, and documentation as areas of improvement.

■ Difficulty in finding skills, a partner community still too small and a lack of flexibility in thesubscription model are cited by clients as obstacles to a more widespread HCI adoption.

■ The HCI roadmap does not address key items, such as integration with big data platforms(Hadoop), business process orchestration and support for citizen integrator requirements.

SnapLogic

SnapLogic is a California company, formed in 2006.

The SnapLogic Elastic Integration Platform is a multitenant iPaaS. Its primary differentiation is theintrinsic modularity and extensibility of the platform architecture. The modules, referred to as"Snaps," represent adapters to various external endpoints, including SaaS, on-premisesapplications, data stores and communications protocols. Sequences of Snaps create pipelines.


Data travels through the pipeline of Snaps converted to JSON format. The pipelines run on a dataprocessing platform (Snaplex) that can be deployed in the cloud (Cloudplex) or on-premises(Groundplex). Recently the company expanded to support big data integration by adding an abilityto translate pipelines in MapReduce Hadoop code (SnapReduce) and a new Hadoop-based pipelineplatform (Hadooplex). The latest innovation is the support for low-latency "Ultra Pipelines."

Strengths

■ SnapLogic's modular architecture is conducive to extensibility and building of a partnerecosystem. The company's central focus on modularity and extensibility fits well with themodern trends in Web-scale software development and operations and appeals to thecompany's large-organization target market.

■ Easy-to-use tools for design of integration pipelines, a Java SDK for development of customadapters (Snaps) and the ability to operate in the cloud and on-premises supporting hybridintegration scenarios are attractive to both customers and partners.

■ A large and growing collection of adapters to applications, databases and communicationssupports both application and data integration and helps the company meet the ever-expanding business demands, as demonstrated by the recent expansions into big data andother new areas.

■ Business investment in partnerships with popular SaaS providers, including Workday,ServiceNow and Salesforce, establish a foundation for further channel expansion.

Cautions

■ Limited support for the B2B community management, programmable rules and API gatewayfunctionality create some dependence on third parties and limits the company's ability tocompete as a comprehensive cloud integration and governance platform.

■ Several rounds of venture capital investment; a relatively small installed base (the companyclaims over 120 paying enterprise customers), despite the recent acceleration; and continuinglack of profitability make the company a potential acquisition target and challenge its long-termindependence.

■ A limited presence outside of the U.S. market and minimal support for vertical-industrydemands reduce the company's ability to compete with the market leaders.

■ Limited support for API governance may prevent SnapLogic from meeting the requirements ofstrategically oriented customers looking beyond integration for a comprehensive applicationand service intermediary platform.

TerraSky

TerraSky is a Japan-based company formed in 2006 to provide professional services to JapaneseSalesforce customers. Recently, it has made some effort to establish a presence in the U.S. market,as well.


In 2008, the company released SkyOnDemand, an iPaaS based on its DCSpider software anddeployed on Amazon's data centers in Japan. SkyOnDemand also includes data integrationsoftware licensed from Appresso, a notable data integration vendor in Japan. SkyOnDemandspecializes in integration and data migration between Salesforce and on-premises or cloudendpoints and supplies some necessary adapters and an adapter builder for Java. SkyOnDemandoperates entirely as a cloud service, with no on-premises components or proxies. Most of itsbusiness remains in Salesforce integration consulting contracts with or without the use ofSkyOnDemand.

Strengths

■ A well-established expertise in Salesforce integration and important system integrator (SI)partnerships help the company in competitive sales situations and result in steady growth ofTerraSky's customer base, although most of that strength is manifest in Japan and other Asia/Pacific countries.

■ Advanced graphical design via more than 900 modeling icons frees subscribers from the needto learn a new programming language, reducing the cost of entry, although full mastery of themodeling may carry its own level of complexity.

■ TerraSky is the leading integration solution for Salesforce in Japan and continues to innovate forthis use case. Considering the wide popularity of Salesforce worldwide, TerraSky has apromising foundation to expand into new geographies.

■ Planned developments in support of MQTT, REST, Amazon SQS message queuing and othercapabilities required for IoT integration can open new opportunities for the company's marketpositioning.

Cautions

■ SkyOnDemand uses an isolated tenancy model of multitenancy. This least-elastic approach willbecome expensive for TerraSky (and consequently for its customers) as its business grows.

■ Most of the company's paying customers are in Japan, and the rest are in other Asia/Pacificcountries. The company has been attempting to expand to the U.S. markets, so far with limitedprogress. It continues to lack name recognition or presence outside of Japan and other Asia/Pacific countries. These issues, coupled with a lack of strategy to address scenarios other thanSalesforce integration, make SkyOnDemand scarcely appealing for multinational organizationslooking for an iPaaS to address a variety of use cases.

■ SkyOnDemand is targeting LOB integration developers and is often combined with TerraSky orpartner SIs' consulting assistance. There is little effort to attract the central IT or citizenintegrators — both key integration markets now and in the future.

■ Minimal support of B2B integration leaves to the competition the large opportunity market ofmultienterprise business, often involving Salesforce services.


Youredi

Youredi is a privately funded iPaaS provider that was incorporated in Helsinki, Finland in 2010.

The Youredi platform is a multitenant iPaaS built on Microsoft's Azure PaaS. With instances of theplatform running in the U.S., Europe and Asia, Youredi has a global reach. The platform focusesprimarily on CSI, B2B and on-premises application-to-application integration and allows tenants toexpose services via APIs to other tenants on the platform.

Strengths

■ Youredi has focused heavily on logistics and financial transaction integration and leveraged itspartnerships to expand into other verticals, such as IT service management and value-addednetworks, enabling the company to grow from 15 clients in 2013 to 85 clients in 2014, acrossEurope and Asia/Pacific.

■ The flexibility of the platform and the continuous release process mean that new features canbe delivered in as little as two weeks. Releases are regression-tested and gradually deployedinto production with zero downtime and without operational impacts to clients.

■ Youredi has good understanding of the iPaaS market and has created a strong business visionaligned with a good go-to-market strategy, focusing on industry solutions, which is providingsignificant growth in a way that is well-managed and does not threaten the underlying scalableplatform. By selecting customers that enable Youredi to enhance the capabilities of theplatform, and leveraging ISVs to add vertical solutions on top of the platform, the company hasmanaged to make good improvements during 2014.

■ Client feedback for Youredi was extremely positive, praising the effectiveness of the platform,the speed at which projects were delivered and the responsiveness of the vendor.

Cautions

■ Youredi is a small company of around 20 people, whose primary focus to date has been toprovide a platform that meets the demands of its currently small customer base, including OEMpartners. Many potential clients may find that the platform does not have a similar choice ofout-of-the-box CSI capabilities, when compared with other iPaaS offerings.

■ Currently, most integration development is performed by OEM partners or Youredi rather thanend users, resulting in relatively few users experienced with the development process.

■ Youredi's go-to-market strategy focuses on clients driving new platform capability, rather than atraditional platform roadmap. The result is a platform that is fit for purpose for its current andplanned client base, but does not necessarily serve as a generic platform aimed at end-usersubscribers.

■ While overall, the clients were very happy with Youredi, they occasionally raise legitimateconcerns that the size of Youredi could make it a target for acquisition if it continues to deliver.


Vendors Added and Dropped

We review and adjust our inclusion criteria for Magic Quadrants and MarketScopes as marketschange. As a result of these adjustments, the mix of vendors in any Magic Quadrant orMarketScope may change over time. A vendor's appearance in a Magic Quadrant or MarketScopeone year and not the next does not necessarily indicate that we have changed our opinion of thatvendor. It may be a reflection of a change in the market and, therefore, changed evaluation criteria,or of a change of focus by that vendor.

Added

The following providers have been added to the Magic Quadrant for Enterprise Integration Platformas a Service, Worldwide because over the past 12 months, they evolved their offerings andcommercial operations as to meet the inclusion criteria:

■ Adaptris

■ Celigo

■ Cloud Elements

■ Microsoft

■ Youredi

Dropped

The following providers were included in the 2014 version of the Magic Quadrant for EnterpriseIntegration Platform as a Service, but have been excluded from the 2015 version because they didnot meet one or more inclusion criteria:

■ Actian, rated as a Challenger in 2014, in mid-2014 decided to incorporate its iPaaS (ActianDataCloud) into its broader Actian Analytics Platform as the data connectivity layer, thereby notmeeting the inclusion criterion that requires availability as a stand-alone offering. However, thecompany recently reshaped its strategy, and now, Actian DataCloud is a stand-alone businessunit within Actian.

■ E2E Technologies, a Niche Player in 2014, did not meet the criterion of the minimal number ofproduction clients.

■ NEC, a Niche Player in 2014, did not meet the criterion of the minimal number of productionclients.

■ Skyvva, a Niche Player in 2014, ceased business operation and in late 2014, the iPaaS offeringwas integrated into Apsara Consulting, a German company that was the original developer ofthe Skyvva iPaaS technology. Apsara kept the Skyvva branding, hired most of the formerSkyvva employees and is actively working to give continuity to Skyvva's offerings and to bringthe marketing and sales operations up to speed in the course of 2015.


■ Tibco Software, a Niche Player in 2014, did not meet the criterion of the minimal number ofproduction clients.

■ Vigience, a Niche Player in 2014, did not meet the criterion of the minimal number ofproduction clients.

Inclusion and Exclusion CriteriaTo be included in this Magic Quadrant, a provider must provide an offering with the followingcharacteristics:

■ It is a cloud service:

■ Available by subscription and accessible over Internet technologies

■ Available uniformly to all qualified subscribers

■ Including some sharing of physical resources between logically isolated tenants(subscribers or applications)

■ Including some self-service provisioning and management by subscribers

■ Including bidirectional scaling without interruption of activities and with some automation

■ Including some instrumentation for resource use tracking

■ It is a platform as a service (PaaS). That is:

■ It encapsulates the underlying virtual or physical machines and their procurement,management and direct costs, and it does not require tenants to be aware of them(although optional access is permitted).

■ It delegates to the providers the patching, versioning and health of the platform stack.

■ It provides a minimal set of iPaaS capabilities:

■ Support for multiple connectivity protocols and data/message delivery styles (that is, somecombination of API-based, messaging and batch); data and message validation, mappingand transformation; routing; orchestration; and adapters for SaaS and on-premisespackaged applications, data sources and technology environments

■ Tools to develop, test, deploy, execute, administer, monitor and manage integration flowsand manage the life cycle of the relevant artifacts (transformation maps, routing rules,orchestration flows and adapter configurations) via a Web-based and/or mobile graphicaluser interface and/or a command line interface and/or APIs

■ It is enterprise-grade and aimed at enterprise-class projects by:

■ Providing some support for high availability and disaster recovery

■ Including some provisions for securing access to endpoints and to the platform functionality


■ Providing some technical support to paying subscribers

■ It is provided as a stand-alone service. That is, to use the platforms, clients can subscribe onlyto the iPaaS capability and are not forced to also subscribe to some other cloud service (forexample, a SaaS application or another form of PaaS, such as application PaaS or bpmPaaS) ofwhich the iPaaS capability is an "embedded" subset.

■ It had to be generally available as of 1 September 2014.

■ It had to account for at least 30 paid customers by the same date.

Evaluation Criteria

Ability to Execute

Ability to Execute criteria aim at rating providers' ability to deliver an iPaaS that meets the expectedset of functions, ensuring that customers' integration projects succeed, while growing in revenueand market share.

In this fast-growing and rapidly evolving market, where aggressive new entrants try to win newclients as fast as possible, the most important factors to succeed are:

■ The platform's ability to suit prospects' functional requirements (Product or Service criterion)

■ The provider's proven track record of enabling integration projects to succeed throughresponsive support, adequate pricing and the ability to establish positive commercialrelationships (Customer Experience criterion)

Other important elements for success in the enterprise iPaaS market are:

■ Providers' installed base and ability to build up a credible and long-term business (OverallViability criterion)

■ A proven provider's track record in keeping pace with evolving market requirements (MarketResponsiveness/Record criterion)

■ Providers' effectiveness in generating brand awareness and stimulating prospect interestthrough sound marketing campaigns (Marketing Execution criterion)

■ Having a strong global sales and marketing structure and support/professional services, a vastpartner network, and multiple, geographically distributed data centers (Operations criterion).

In a market still relatively small and quite fragmented, aggressive sales strategies and competitivepricing (Sales Execution/Pricing criterion) are, to a certain degree, less important for success thanthe other factors.


In the evaluation process, we paid particular attention to the technical capabilities of providers'iPaaS offerings (Product or Service criterion). Therefore, we examined each provider's availableservices and its record in the market for:

■ Degree of cloudiness — How extensively cloud characteristics are implemented. Theseinclude tenant isolation; resource sharing; elasticity; scaling; self-service; and instrumentationfor tracking, scaling and billing. (Weighting: Medium)

■ Enterprise worthiness — The depth and breadth of support for enterprise requirements,including high availability, disaster recovery, technical support and secure access. (Weighting:High)

■ Functional completeness (breadth of offering) — How effectively the provider implements theiPaaS functionality: core integration capabilities (multiprotocol support and bridging; multipledata/message delivery styles; and data/message validation, transformation and routing),adapters, data quality, development tools, administration, monitoring and managementenvironment, support for secure communication, governance/API management and communitycollaboration/crowdsourcing facilities. (Weighting: Medium)

■ Openness — How open, in terms of extensibility and skills portability, the offering is via supportfor open standards and open-source technologies; how it enables access to the iPaaSfunctionality via open APIs (DevOps capabilities); how it supports on-premises deployment ofthe platform and compatibility with on-premises integration platforms. (Weighting: Medium)

■ Integration developer's productivity and ease of operation — Provisions for the integrationdeveloper's productivity (model-driven design, integration flow metadata discovery andrepository, reusable integration templates, cloudstreams, and comprehensive, easy-to-understand documentation and examples) and for integration flow monitoring and management.(Weighting: High)

■ Citizen integrator support — How well the provider enables do-it-yourself-integration bybusiness users by providing self-service capabilities, such as: a library of self-servicecloudstreams, "no coding" cloudstream customization and development tools, and toolsenabling integration experts to develop citizen-integrator-oriented cloudstreams. (Weighting:Low)

■ Versatility — In addition to CSI, support for use cases, such as integration across on-premisesapplications/data sources, B2B integration, process integration, composite applications,integration of mobile apps and machine-to-machine/Internet of Things integration. (Weighting:Medium)

The weightings applied to the product or service subcriteria reflect the current buying patterns,which favor ease of use and enterprise characteristics (such as security, high availability, disasterrecovery and technical support) over other technical considerations, such as functionalcompleteness, openness, degree of cloudiness and versatility.

Most organizations haven't focused on citizen integrators as a high-priority issue to address;therefore, support to this constituency is not a top priority in most selection processes.


Table 1. Ability to Execute Evaluation Criteria

Evaluation Criteria Weighting

Product or Service High

Overall Viability Medium

Sales Execution/Pricing Low

Market Responsiveness/Record Medium

Marketing Execution Medium

Customer Experience High

Operations Medium


Completeness of Vision

Completeness of Vision criteria aim at assessing providers' ability to meet emerging requirementsand drive enterprise iPaaS adoption in new territories and toward a more strategic positioning, whileat the same time growing a profitable and self-sustaining business.

Therefore, during the next 12 months, success in this market will primarily depend on:

■ The provider's ability to understand the iPaaS market evolution — for example, emerging usecases, such as MAI, big data and Internet of Things integration, and a growing userorganization's focus on citizen integrators and adaptive/bimodal approaches to integrationprojects (Market Understanding criterion)

■ A roadmap capable of addressing new functional and nonfunctional requirements (Offering[Product] Strategy criterion)

Also important will be factors such as:

■ Articulating differentiating value propositions and marketing positioning (Marketing Strategycriterion)

■ Devising an effective and efficient sales strategy (Sales Strategy criterion)

■ Defining value propositions for selected and well-defined industry sectors or businessprocesses (Vertical/Industry Strategy criterion)

■ Introducing technical and business innovation (Innovation criterion)

■ Formulating a geographic expansion strategy (Geographic Strategy criterion)


Addressing these challenges is important for enterprise iPaaS providers to get ahead of thecompetition, expand the installed base, and grow market share and revenue; but the ability tosuccessfully tackle these issues is as important in enterprise iPaaS as in several other markets.

Differentiation in terms of business model is not particularly critical at this stage. As long as theirbusiness model supports fast growth and even modest profitability, it will be sufficient for enterpriseiPaaS providers to survive and possibly thrive (Business Model criterion).

We paid particular attention to the providers' strategies for their iPaaS technical capabilities(Offering [Product] Strategy criterion). The relevant subcriteria are the same ones considered to ratethe Product or Service criterion in the Ability to Execute dimension, because we don't expecttechnical requirements to change significantly over the next 12 months. However, the weightingsapplied are different, thus reflecting Gartner's expectations regarding the evolution of buyingpatterns in that time frame.

As the iPaaS scope expands to cover multiple and varied use cases, and as the iPaaS rolebecomes increasingly strategic, user organizations will primarily focus on versatility, functionalcompleteness and the developer's productivity and ease of operation, by assuming that cloudcharacteristics, support to enterprise requirements and openness are important but not decisivelydifferentiating factors. Citizen integrators will become a more visible phenomenon over the next 12months, but not to the point of making strong support for this constituency a critical factor in iPaaSselection processes.

Therefore, to rate providers' offering (product) strategy, we examined their available roadmap andcredibly committed initiatives for:

■ Degree of cloudiness: How extensively cloud characteristics will be improved. These includetenant isolation; resource sharing; elasticity; scaling; self-service; and instrumentation fortracking, scaling and billing. (Weighting: Medium)

■ Enterprise worthiness: How the provider will improve the depth and breadth of support forenterprise requirements, including high availability, disaster recovery, technical support andsecure access. (Weighting: Medium)

■ Functional completeness (breadth of offering): How the offering's evolution expands theiPaaS functionality: core integration capabilities (multiprotocol support and bridging; multipledata/message delivery styles; and data/message validation, transformation and routing),adapters, data quality, development tools, administration, monitoring and managementenvironment, support for secure communication, governance/API management, and communitycollaboration/crowdsourcing facilities. (Weighting: High)

■ Openness: How strongly the roadmap will enhance platform openness in terms of extensibilityand skills portability, via support of open standards and open-source technologies, how it willextend access to the iPaaS functionality via open APIs (DevOps support), and how it willimprove support for on-premises deployment of the platform and compatibility with on-premises integration platforms. (Weighting: Medium)


■ Integration developer's productivity and ease of operation: How the provider is planning toenhance the platform provisions for the integration developer's productivity (model-drivendesign, integration flow metadata discovery and repository, reusable integration templates, andcloudstreams) and for integration flow monitoring and management. (Weighting: High)

■ Citizen integrator support: How extensively the offering roadmap targets do-it-yourselfintegration by business users by providing self-service capabilities such as: a library of self-service cloudstreams, no-coding cloudstream customization and development tools, and toolsenabling integration experts to develop citizen integrator-oriented cloudstreams. (Weighting:Medium)

■ Versatility: In addition to CSI, the planned functional extensions to support other use cases,such as integration between on-premises applications/data sources, B2B integration, processintegration, composite applications, integration of mobile apps and machine-to-machine/Internet of Things integration. (Weighting: High)

Table 2. Completeness of Vision Evaluation Criteria

Evaluation Criteria Weighting

Market Understanding High

Marketing Strategy Medium

Sales Strategy Medium

Offering (Product) Strategy High

Business Model Low

Vertical/Industry Strategy Medium

Innovation Medium

Geographic Strategy Medium


Quadrant Descriptions

Leaders

Leaders in this market have several hundreds or thousands of paid clients for their iPaaS and oftenmultiple thousands of nonpaid users leveraging "freemium" options. They have a solid reputationand notable market awareness, a proven track record in supporting a variety of use cases (oftenbusiness-critical), multiregional operations, and a notable network of partners, especially amongSaaS providers. Their platforms, typically based on technology that has been in the market foryears, are rich and mature functionally and in terms of their quality of service and security.


None of the Leaders is a pure enterprise iPaaS player; but in all cases, the company's iPaaSbusiness is fast-growing, sizable (relative to the market dimension), and complementary andsynergistic with other businesses (traditional on-premises integration platforms, packagedapplications and professional services).

A Leader's vision is typically progressive and focused on incrementally improving the platform'scapabilities, addressing emerging requirements and opportunities, and rapidly expanding marketshare and the installed base with a degree of comprehensiveness that is usually superior to mostother players. Leaders understand what is required to drive the enterprise iPaaS market in terms oftechnology, adoption patterns, use cases and industry impact. Most of them have alreadydemonstrated these abilities by playing, along with other pioneers, a crucial role in shaping themarket into its present form and showing understanding of emerging requirements, such as APImanagement, citizen integrator and IoT.

Given the dynamic, rapidly changing nature of this market, it is possible that other players enter theLeaders quadrant during the next 12 months. All the current Leaders have the potential, but not aguarantee, to maintain their positions.

However, Leaders are not necessarily always the best option. In many cases, other providers mayprove more suitable to a given user organization's needs for a variety of reasons, includinggeographic coverage, technical compatibility with the established technology environment, affinitywith the current and/or evolving application portfolio, levels of support and responsiveness, andalready established commercial arrangements.

Challengers

Challengers in enterprise iPaaS have been in the market for several years and have notable installedbases of multiple hundreds of clients, and their offerings are mature and proven in multipleintegration scenarios. Consequently, they often offer competitive platforms, at least for certain usecases.

However, Challengers have a somewhat limited perspective on how the enterprise iPaaS market willevolve, who the buyers are and will be, what the use cases are, and how user expectations willevolve. This typically results in their offerings being more narrowly focused than those of theLeaders, and on a relatively conservative technical roadmap. Their sales and marketing strategiesare somewhat constrained by their limited perspective on the enterprise iPaaS market.

Only two providers are rated as Challengers in this Magic Quadrant. Many iPaaS providers justrecently entered the iPaaS arena; therefore, well-established players with mature offerings andnotable market presence are relatively few. In such a context, Challengers have the potential tomake the transition into leadership positions by putting extra sales and marketing focus on theenterprise iPaaS space and by articulating a more aggressive and ambitious roadmap. However,they will have to carefully monitor the competition, as some of the best-executing Visionaries andNiche Players may turn into Challengers during the next 12 months.


Visionaries

Visionaries understand the specific requirements of this market and are innovating through acombination of technology, delivery models and go-to-market strategies. In some cases, Visionariessee their iPaaS offering as a key element of a broader cloud (whether SaaS-centric or PaaS-centric)strategy.

Visionaries' Ability to Execute is lower than that of Leaders, because of a smaller installed base anda certain immaturity of their offerings (often due to a recent entry into the market), or because oftimid marketing and unaggressive and reactive sales operations. In a couple of cases, the provideris in the midst of a transition between the first generation of its iPaaS offering and a new, moreadvanced strategy. Although this evolution shows a progressive approach to this market, itinevitably exposes them and their clients to technical and commercial discontinuities and migrationissues, thus limiting their ability to execute.

Some of the Visionaries are well-positioned to make the transition into the Challengers quadrant oreven climb to leadership over the next few years if they diligently execute on their vision and gearup their sales and marketing machines.

Most of the providers in the Visionaries Quadrant have a background in traditional on-premisesintegration middleware and have entered the market through acquisitions, by significantly re-engineering their on-premises products for the cloud or by developing a new iPaaS technology.

Niche Players

Niche Players are small companies, in many cases startups which mostly entered the market duringthe past few years. Often, they have a relatively narrow focus in terms of the use cases they supportor the geographies they serve.

However, their technology is often excellent, and their customers show a high degree ofsatisfaction. Therefore, in many cases, Niche Players' offerings can be the appropriate option foruser organizations that, for example, are sensitive to local presence and support, want a closerelationship with a provider, or seek a platform that focuses on specific requirements. These canoften prove to be benefits that offset risks in other dimensions.

Many Niche Players are likely to disappear or be acquired by more powerful vendors that want toenter the market. A few of them have significantly improved their Ability to Execute andCompleteness of Vision over the past 12 months and have increased their chances of growing theirmarket share and moving to the Challengers quadrant or significantly improving their vision andmoving into the Visionaries quadrant.

ContextTrends and drivers leading to enterprise iPaaS adoption will affect virtually every organization usingcloud-based applications. Support for rapidly emerging use cases, such as API publishing and


management, MAI, IoT and big data analytics, are targeted in the roadmaps of most enterpriseiPaaS providers.

During the next 12 months, directors of integration and other IT leaders who need to tackle a varietyof integration requirements should look at the providers in this Magic Quadrant when it comes to:

■ Supporting LOB/departmental adaptive CSI, B2B, APIs, MAI and, increasingly, IoT projects

■ Looking for rapid and low-cost resolution of simple integration requirements

■ Reducing capital investments in, and ongoing operation cost for, integration technology

■ Complementing their established on-premises integration middleware with platforms targetingCSI, MAI and API requirements in the context of a bimodal integration strategy holisticallysupporting both traditional systematically oriented and adaptive integration requirements,including citizen integrator enablement

■ Implementing hybrid integration platform strategies to be able to address complex projectscombining CSI, B2B, API, MAI, on-premises and IoT integration aspects

When evaluating enterprise iPaaS providers, IT leaders will have to realize that the competitivelandscape is varied and differentiated:

■ Some offerings are mature and tested in hundreds, if not thousands, of real-life projects,whereas many providers have a minimal installed base and fledgling field experience.

■ Certain offerings cover a wide spectrum of use cases, supported by a rich portfolio ofintegration content (such as adapters, templates and cloudstreams). Some players are insteadnarrowly focused on supporting a few, well-defined requirements.

■ Some providers have global ambitions, while others target only well-identified geographies.

■ Most providers focus on iPaaS, but a certain number of players come to market with a broaderPaaS proposition or offer iPaaS as a companion to other cloud offerings (such as IaaS or SaaS)

■ Some offerings are neutral with respect to the SaaS landscape, whereas certain platforms arebiased toward a specific, narrow set of SaaS offerings.

■ Some are cloud-native and available only as cloud services; others are enterprise-native andexport established enterprise software to the cloud.

■ Some focus on systematic integration projects, most target adaptive integration, and many arealso moving toward citizen integrator support.

A common trait across most providers is a horizontal approach when it comes to industry sectors.Most providers' value propositions and go-to-market strategies are built around cross-industrySaaS and packaged application providers' ecosystems. Rarely are iPaaS offerings focused onserving the requirements of a specific vertical, although there are a few notable examples ofcompanies with strong industry focus. However, some providers have been evolving their strategyin this respect and are in the process of articulating (although often still quite timidly) valuepropositions for a few, selected industry sectors (such as healthcare).


Therefore, at this stage of the market, to choose the optimal enterprise iPaaS, IT leaders shouldconsider factors such as:

■ Nature of the integration project (systematic versus adaptive)

■ Rapid integration versus advanced functionality requirements

■ Scope of the project (single use case [for example, CSI] versus multiple requirements)

■ Platform's fitness to the established and evolving technology and application environments

■ Ability of the iPaaS to support emerging integration requirements (for example, IoT) that theclient organization deems relevant for the business strategy

■ Ability to federate the iPaaS with the established on-premises integration platform, whether insupport for specific requirements or in the context of hybrid integration platform initiatives

■ SLA and QoS requirements

■ Security and regulatory compliance needs

■ Geographic location of the iPaaS data centers and support centers

■ Level of integration competencies available in-house

■ Availability and cost of iPaaS skills from the provider and external service providers

■ Cost expectations and available budget

Given the degree of differences among offerings in this relatively early and immature market, ITleaders should select enterprise iPaaS offerings after having developed a good understanding oftheir requirements and priorities. They should also adopt a pragmatic and tactical approach giventhe expected continuing consolidation and change in the market, which may lead to disruptions iniPaaS technologies and practices in the next two to three years.

Market OverviewIn the enterprise iPaaS market, organizations are adopting a semioutsourced approach tointegration, whereby responsibility for integration projects is maintained in-house (or delegated to atrusted system integrator). The implementation, provisioning, operation, monitoring, managementand maintenance of the enterprise-grade integration platform are instead delegated to an externalservice provider delivering the platform as a cloud service. An integration platform in the form of acloud service that targets enterprise requirements and use cases is indeed an enterprise iPaaS.

Gartner estimates that the enterprise iPaaS market expanded notably in 2014, approaching aquarter of a billion dollars and growing over 60% in terms of providers' subscription revenue.However, some providers far exceeded this growth and, in some cases, registered a triple-digitgrowth rate, thus notably winning market share. However, Gartner estimates that several enterprise


iPaaS providers generate less than $10 million from their offerings; some collect higher amounts,but only one exceeds $50 million.

What makes enterprise iPaaS attractive for technology providers are expectations about its growthand long-term strategic relevance, rather than the current size of the market. Adoption may behampered by the lack of standards and skills, incomplete offerings, the nuisance of federatingenterprise iPaaS with classic on-premises integration platforms, and concerns about security andprivacy. Finally, the questionable viability of some providers is a problem, as several players areextremely small and vulnerable to short-term market shocks and to the initially low profitability ofthe subscription business model.

Nevertheless, Gartner expects that enterprise iPaaS will continue to grow at a double-digit rate overthe next five years (see "Market Trends: Platform as a Service, Worldwide, 2013-2018, 2Q14Update"), on the assumption that virtually all user organizations must integrate applications, and atleast some of these are, or will be, in the cloud. Other powerful drivers for enterprise iPaaS adoptionwill be MAI and API publishing and management, which will determine growing overlap andconvergence with API management and mobile back-end as a service (mBaaS) offerings. Weexpect that iPaaS adoption will also be driven by IoT requirements, although at a later stage, whichwill determine some degree of functional overlap and demand for integration with the emerging IoTplatforms.

Fast growth of the enterprise iPaaS market, combined with the rapidly expanding penetration ofpublic cloud services in large enterprises, not only appeals to newcomers, but also attractsinvestments from the traditional integration middleware powerhouses. These vendors see their entryin the enterprise iPaaS market as a way to:

■ Address SMBs (a segment most of them have neglected)

■ Cross-sell to their established clientele

■ Counter the penetration of enterprise iPaaS pure-play providers in large organizations,especially at the LOB/departmental level

■ Revamp and reinvigorate their integration platform businesses, still primarily based on previous-generation on-premises integration technology and currently characterized by slow (if notnegative) growth rates

The more visionary of the established integration vendors understand that enterprise iPaaS is anopportunity to start fresh and build a new modern integration infrastructure, replacing the function-rich, but expensive and aging, technology.

Software megavendors feel compelled to articulate a PaaS strategy, including enterprise iPaaSamong other forms of PaaS, as an obvious and required extension to their evolving SaaS offerings.

Typically, startup companies try to differentiate themselves by targeting specific cloud ecosystems(Amazon, NetSuite or Salesforce), by addressing well-defined use cases, or by serving specificgeographies. Established integration middleware vendors, instead, usually integrate their enterpriseiPaaS offerings into broad value propositions aimed at covering a large spectrum of traditional andemerging integration requirements.


Because of its expanding versatility, enterprise iPaaS offerings increasingly compete with classicon-premises integration platforms. However, especially in large organizations, enterprise iPaaSofferings often cooperate with established integration middleware. This will lead to the emergenceof hybrid integration platforms, combining enterprise iPaaS characteristics with those of traditionalon-premises integration platforms, enabling public and private cloud deployment models, andserving a variety of requirements: traditional systematically oriented, ICC-driven integrationinitiatives; adaptive/rapid integration, LOB-level projects; and individual, simple integrations carriedout by citizen integrators (that is, business users) who are not part of IT teams. Many enterpriseiPaaS providers are extending their platforms to support citizen integration requirements, which willput them on a collision course with the plethora of providers that specialize in serving this space.

Enterprise iPaaS capabilities are increasingly provided as embedded features in a variety of cloudservices (for example, SaaS applications or broad PaaS suites) and IT outsourcing offerings — forexample, integration brokerages and CSBs.

Primarily due to the entry of powerful and ambitious players, enterprise iPaaS will be increasinglydelivered as distinct or integrated functionality of broader PaaS suites, often aligned with the SaaSoffering from the same vendor. This process, to a certain extent, mirrors what happened in thetraditional on-premises middleware market, where integration technology is now offered primarily asa component of large suites of application infrastructure capabilities. However, some independentand stand-alone enterprise iPaaS offerings will remain in the market owing to users' requirementsfor neutral integration platforms bridging megavendors' SaaS ecosystems.

This Magic Quadrant identifies 16 providers that met the inclusion criteria. However, several otheriPaaS providers are active in the market, and some of them will play a notable role in the comingyears. Consequently, the already-crowded vendor landscape will become even more confusing andfragmented over the next 12 to 18 months. Leadership positions will change, many players will beacquired or simply disappear from the market, and new, powerful providers will emerge.

The following is a nonexhaustive list of other iPaaS providers that did not meet the inclusion criteriaand that Gartner is proactively tracking:

■ Adeptia — provides Adeptia Connect, a citizen integrator-oriented iPaaS focused onsupporting B2B requirements

■ Akana (formerly SOA Software) — provides iPaaS capabilities as embedded features of itsAPI management offering

■ Axway (Vordel) — provides iPaaS capabilities as embedded features in its API managementoffering

■ i2factory — provides Guarana Cloud, an iPaaS targeting SMB organizations in Spain

■ Infor — is in the process of releasing Infor Intelligent Open Network (ION) Cloud Edition (aniPaaS rendition of its popular Infor ION integration platform)

■ Integround — provides an iPaaS built on Microsoft Azure that focuses on CSI scenarios withclients mainly in the Nordics


■ Moskitos — provides Crosscut, a Microsoft Azure-centric iPaaS targeting medium and largeorganizations in France

■ Oracle — provides the Oracle Cloud Integration service, an adaptive integration-oriented iPaaSrendition of its veteran Oracle Service Bus targeting the company's SaaS offerings.

■ Red Hat — plans to provide an iPaaS rendition of its JBoss Fuse Service Works on-premisesintegration platform

■ Scribe — provides Scribe Online, an embeddable iPaaS primarily focused on the ISVs andSaaS providers market

■ Software AG — provides webMethods Integration Cloud, an adaptive integration-orientedrendition of its veteran webMethods Integration Platform

■ Talend — is in the process of releasing the Talend Integration Cloud, an iPaaS rendition of itsarray of data and application integration platforms

Gartner Recommended ReadingSome documents may not be available as part of your current Gartner subscription.

"How Markets and Vendors Are Evaluated in Gartner Magic Quadrants"

"What IT Leaders Need to Know About Cloud Services Integration: Proactively Address theChallenge"

"Predicts 2015: Private, Public and Hybrid: PaaS Advances"

"The Integrator's Dilemma: Can a Bimodal Approach Balance Integration Agility and Control?"

"Adopt an Adaptive Approach to Effectively Support Rapid Integration Requirements"

"Embrace the Citizen Integrator Approach to Improve Business Users' Productivity and Agility"

"Why There's a Move Toward Hybrid Integration Platforms"

"How to Use Hybrid Integration Platforms Effectively"

"Selecting the Most Suitable Platform for Cloud Service Integration"

"New Integration Strategies and Technologies Target the Digital Business"

"Market Trends: Platform as a Service, Worldwide, 2013-2018, 2Q14 Update"


Evaluation Criteria Definitions

Ability to Execute

Product/Service: Core goods and services offered by the vendor for the definedmarket. This includes current product/service capabilities, quality, feature sets, skillsand so on, whether offered natively or through OEM agreements/partnerships asdefined in the market definition and detailed in the subcriteria.

Overall Viability: Viability includes an assessment of the overall organization's financialhealth, the financial and practical success of the business unit, and the likelihood thatthe individual business unit will continue investing in the product, will continue offeringthe product and will advance the state of the art within the organization's portfolio ofproducts.

Sales Execution/Pricing: The vendor's capabilities in all presales activities and thestructure that supports them. This includes deal management, pricing and negotiation,presales support, and the overall effectiveness of the sales channel.

Market Responsiveness/Record: Ability to respond, change direction, be flexible andachieve competitive success as opportunities develop, competitors act, customerneeds evolve and market dynamics change. This criterion also considers the vendor'shistory of responsiveness.

Marketing Execution: The clarity, quality, creativity and efficacy of programs designedto deliver the organization's message to influence the market, promote the brand andbusiness, increase awareness of the products, and establish a positive identificationwith the product/brand and organization in the minds of buyers. This "mind share" canbe driven by a combination of publicity, promotional initiatives, thought leadership,word of mouth and sales activities.

Customer Experience: Relationships, products and services/programs that enableclients to be successful with the products evaluated. Specifically, this includes the wayscustomers receive technical support or account support. This can also include ancillarytools, customer support programs (and the quality thereof), availability of user groups,service-level agreements and so on.

Operations: The ability of the organization to meet its goals and commitments. Factorsinclude the quality of the organizational structure, including skills, experiences,programs, systems and other vehicles that enable the organization to operateeffectively and efficiently on an ongoing basis.

Completeness of Vision

Market Understanding: Ability of the vendor to understand buyers' wants and needsand to translate those into products and services. Vendors that show the highest


degree of vision listen to and understand buyers' wants and needs, and can shape orenhance those with their added vision.

Marketing Strategy: A clear, differentiated set of messages consistentlycommunicated throughout the organization and externalized through the website,advertising, customer programs and positioning statements.

Sales Strategy: The strategy for selling products that uses the appropriate network ofdirect and indirect sales, marketing, service, and communication affiliates that extendthe scope and depth of market reach, skills, expertise, technologies, services and thecustomer base.

Offering (Product) Strategy: The vendor's approach to product development anddelivery that emphasizes differentiation, functionality, methodology and feature sets asthey map to current and future requirements.

Business Model: The soundness and logic of the vendor's underlying businessproposition.

Vertical/Industry Strategy: The vendor's strategy to direct resources, skills andofferings to meet the specific needs of individual market segments, including verticalmarkets.

Innovation: Direct, related, complementary and synergistic layouts of resources,expertise or capital for investment, consolidation, defensive or pre-emptive purposes.

Geographic Strategy: The vendor's strategy to direct resources, skills and offerings tomeet the specific needs of geographies outside the "home" or native geography, eitherdirectly or through partners, channels and subsidiaries as appropriate for thatgeography and market.


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