What is SaaS Integration and Why iPaaS is the Answer?

SaaS integration is the process of integrating SaaS platforms (and legacy software) used by businesses into a single platform. The benefit? A cohesive platform where multiple disjointed platforms can work together and create a synergy.

Businesses, today, use multiple SaaS platforms to manage operations. In 2023, a whopping 70% of software used by businesses was in the form Software as a Service. It’s a $247 billion industry!

Each of these SaaS platforms functions as expected. But together, they fail to work as a team. And there are legitimate reasons behind it. The result? A disjointed collection of software hindering the flow of data. Thus, businesses stuck in such a system reap the benefit of process automation.

When SaaS platforms function in isolation:

• Businesses fall prey to data silos
• Operational bottlenecks arise
• Automation remains a distant dream
• Employees spend valuable time reconciling data and doing manual work

What if there was One Platform to Rule Them All? Yes, a single platform that could tie these disparate systems together and make them work as a team. That’s exactly the purpose of SaaS integration.

Let’s look at it more closely:

Application Programming Interface

SaaS platforms rely on APIs to transmit data for other platforms to ingest. The job of an API is to carry data from one system to another third-party system. And this can happen in real time. For example, consider the Shopify API – it can send data to SAP as soon as a new order is created.

Where API Falls Short

SaaS integration tools seldom rely on APIs alone. But for argument’s sake, let’s assume they do. Such a tool can”

• Can standardize HOW data is requested and transferred
• In what format the data needs to be transferred. (sometimes)

Here is the problem though. Not all systems use the same kind of formats. Again, from a practical perspective, a similar type of data might be named differently in different systems. There can also be differences in currency code used, measurement metrics etc. Data format conversion, data mapping etc aren’t really the job of an API. Its role is limited to specifying how a client and a server communicate and transfer data – at least typically.

Let’s give you an example for more clarity. If a business wants to integrate Shopify with SAP, it needs to understand how same data in these two systems is denoted differently

Same Data: Denoted in a Different Way

These are just three examples of SaaS integration challenges. There are other nuances like date-time format etc. Shopify has a simplified tax calculation format while in SAP, you need to put tax codes that should be already there in the system.

Long story short, here are the SaaS integration challenges you’ll face if you use API alone…

API Integration Challenges

Read More: The Ultimate Guide to API Integration

Middleware & SaaS Integration Benefits: Making Your Apps Speak the Same Language

As you can see – Shopify’s order data is structured as a nested JSON object with customer details, line items, and discounts bundled into a single payload. SAP, on the other hand, expects flat, tabular data split across header and line-item tables like ORDR and RDR1, with strict rules for tax codes, shipping, and material IDs.

If a business tries to somehow force Shopify API to reformat the output as per the order structure in SAP, the API will become bloated and inefficient. Simply put, APIs are designed to share data – not transform or convert it. In fact, you will be integrating your system with more than one third-party platform. This means every new integration will necessitate rewriting of the API – adding more bloat in the process.

This is where Middleware comes in. Middleware is a kind of SaaS integration software that makes connecting SaaS platforms easier and faster.

What is Middleware?

Middleware is an indispensable intermediary sitting between two or more systems, acting as a universal translator, workflow conductor, and error-handling safety net. It speaks the ‘language’ of multiple systems and knows how data should be formatted for each individual platform. Thus, when API transfers data, middleware-based SaaS integration tools transform the same data to make it usable to the client system.

Here are the typical roles of a middleware and the SaaS integration benefits you get out of it:

1. Data Transformation

A middleware speaks the language of multiple systems. It transforms the data originating from system A into something that can be easily parsed by system B where the data is ingested.

To give you an example, SAP and SalesForce employ different data structures to record sales data. In SAP, sales order follows a hierarchical structure:

• The order header (ORDR) serves as the parent record
• As for detailed transaction records, they are recorded in the associated line items (RDR1) under the parent record.

Salesforce – being a CRM – captures the same sales order in the form of an Opportunity Model.

Here’s a high level overview of the difference between SAP and SalesForce order structures:

(Note: This is a simplified visualization. Actual differences are more nuanced.)

Long story short, the same sales order from SAP needs to be heavily transformed and mapped for SalesForce to make use of it in the proper way. Middleware makes this rather arduous task easier with automated data transformation. Unlike custom coded APIs, you can use prebuilt scripts (templates) in a middleware to automate this data transformation workflow – in a no-code / low-code way.

2. Workflow Orchestration

Progresses and other operations in a business happen step by step – not all at once. For example, in SAP, the entry of a new sales order doesn’t necessarily mean that the order is complete. There are steps like delivery order creation, goods-issue etc. Depending on the business logic, a sales order can be considered as “complete” when it is delivered or perhaps when the customer pays.

Now suppose you want to mark the corresponding SalesForce opportunity as Closed-Won once the sales order in SAP reaches the goods-issue stage. This can be automated with middleware templates. Every time a sales order reaches goods-issue, a middleware template can automatically trigger marking of the SalesForce opportunity as Closed-Won. This workflow automation can be customized to perform complex automation activities using conditions logic.

3. Error Handling

Middlewares can also make sense of errors and try to rectify them. Here’s a scenario – Salesforce rejects an Opportunity because the Close Date field is blank. What a logically programmed middleware script would do is:

It would query SAP for the missing DeliveryDate and auto-populate Salesforce. If that fails, it can notify the system admin.

Thus, Middlewares perform a key role in SaaS integration. However, modern SaaS integration has become too complex to be handled by traditional Middlewares.

Limitations and Challenges of Middleware-Based SaaS Integration

Middlewares, too, have limitations:

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iPaaS – The Evolution of Middleware for an Evolved Business Landscape

iPaaS (Integration Platform as a Service) represents the evolution of traditional middleware, reimagined for the cloud-first era of SaaS ecosystems. Unlike legacy middleware, which often requires heavy customization, on-premise infrastructure, and manual coding to connect systems, iPaaS is a cloud-native solution designed to streamline and democratize integration.

So, What Exactly Is iPaaS?

iPaaS is a SaaS integration platform that works as a middleware but with more advanced features. iPaaS can seamlessly connect with multiple disjointed systems. Once connected, it builds a bridge among these systems – acting as a central hub. It facilitates integration of disjointed systems, creating a unified environment for data to flow across the entire suite of SaaS platforms used by a business.

(Know More: What is iPaaS? From Basic Concepts to Real Business Results)

In the diagram above, you can see how Shopify, SAP, SalesForce and Tally are connected to the central iPaaS platform. This creates a synergy. Here are the key SaaS application integration benefits achieved through iPaaS:

• Connecting Disparate Systems:

iPaaS connects disparate systems – both cloud-based and on-prem. It brings them together on a single platform. This is a more efficient and effortless way of SaaS integration.

• Multiple Integration Methods:

You can have multiple integration methods at your disposal when you use an iPaaS platform. SaaS integration patterns through API, file transfer, messaging queues etc makes sure that businesses don’t need to spend time in making the integration work.

• Data Flows to and From Both Directions:

iPaaS allows data flow from system A to B and system B to A. This bidirectional data flow ensures preservation of data and business logic.

• Data Mapping and Transformation

With iPaaS you can convert data into formats compatible with different applications. This is crucial for ensuring data accuracy and usability. This is the backbone of ensuring data accuracy and usability.

Here’s a table showing how iPaaS makes more sense over traditional middleware:

Pre-built Data Connectors – Democratizing SaaS Integration

One of the SaaS integration benefits pertaining to the usage of iPaaS SaaS integration tools over traditional middleware is the fact that the entire process is democratized. With pre-built connectors, businesses can connect a diverse array of SaaS applications without needing to rely on programmers. The IT team can do it with just a little bit of knowledge in business logic. These connectors handle the underlying technical complexities in terms of API connection, authentication, data mapping, data transformation etc. Everything is abstracted away.

True Automation – Not Just Automated Data Flow

iPaaS facilitates true workflow automation by integrating all the SaaS platforms used by a business into a central platform. It’s not just automated data flow. You can use complex conditional logic to automatically trigger an activity in system B if system A fulfills a certain condition. That activity in system B can further trigger another activity in system C… The possibilities are endless.

Introducing APPSeCONNECT: The Powerhouse for Modern SaaS Integration

Modern businesses run on multiple SaaS platforms. These platforms work flawlessly and can even share data with other systems. What doesn’t happen is the synergy between these platforms. APPSeCONNECT fills the void by being the central hub for almost all the modern SaaS business applications. The future-proof platform offers a solid platform designed to unify fragmented ecosystems and automate workflows. Operational excellence is guaranteed.

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