Integration Platform as a Service, or iPaaS, has become a key component of modern digital infrastructure. In this guide, we'll explore what iPaaS is, how it works, when it's needed - and why it's become business-critical for organizations that want to grow quickly, reduce technical debt and gain control of their data flows.
In this article, we review:
Most businesses today have more systems than ever: ERPs, CRMs, HR tools, e-commerce platforms, analytics tools and internal databases. Many are cloud-based, others are installed locally. Some have APIs, others do not. What they have in common is that they need to be connected.
But when the systems don't talk to each other, a number of problems arise:
This is where iPaaS (Integration Platform as a Service) comes in. iPaaS is a cloud-based integration platform that makes it possible to connect systems, applications and databases - without building each connection by hand.
Instead of building point-to-point integrations (which quickly become unmanageable at scale), iPaaS provides a centralized hub where all integrations are managed:
■ Visual and code-free or low-code
■ With monitoring, security and data validation built in
■ Scalable - so new systems can be easily added
According to the Mulesoft Connectivity Benchmark Report 2023: 98% of IT leaders say integration is critical to achieving business goals, but only 28% of applications are integrated on average. The gap is wide.
At the same time, new demands - such as real-time reporting, AI, compliance, and rising customer expectations - are placing even greater demands on seamless data management. iPaaS has therefore emerged as one of the most central tools in modern digital infrastructure.
iPaaS stands for Integration Platform as a Service - a cloud-based solution for creating, managing and monitoring integrations between different IT systems, applications and databases. It's a response to a growing need: to manage more systems, faster changes and increased demands for security, real-time data and automation - without building every connection from scratch.
Definition (Gartner):
"iPaaS is a suite of cloud services enabling development, execution and governance of integration flows connecting any combination of on-prem and cloud-based processes, services, applications and data within individual or across multiple organizations."
In other words: iPaaS is a platform that acts as a hub for all your system integration - whether you work with ERP, CRM, e-commerce, BI, IoT or legacy systems.
Typical features of an iPaaS solution:
Visual flow builder tool (low-code)
Create integration flows without writing code - but with the possibility of customization if needed.
API management
Create, document and manage internal and external APIs for system connections.
Data transformation
Transform data between different formats (XML, JSON, CSV, etc.) so that systems understand each other.
Monitoring & logging
Get real-time overview, troubleshooting and history of all integrations.
Security & compliance
Encryption, authentication, logging and access control - often built in from the start.
The difference with other integration models
|
Model |
Description of the model |
Limitations |
|
Point-to-point |
Each system connects directly to another |
Grows rapidly uncontrolled, difficult to maintain |
|
Middleware/ESB |
Internal software managing integrations in large environments |
Often requires heavy configuration and operation |
|
ETL |
Moves data in batch between sources and destinations |
Not real-time, not suitable for API-based communication |
|
iPaaS |
Cloud-based platform for real-time integrations |
Requires some architecture understanding to set up effectively |
iPaaS is the next generation integration solution - built for a landscape where change, security, and real-time data are the imperative, not the exception.
Source:
¹ Gartner: "Market Guide for Integration Platform as a Service (iPaaS)"
Having many systems is no longer a sign of complexity - it's a normal state of affairs. But for systems to create value, they need to be able to work together. This is where iPaaS makes a difference: it enables an efficient, secure and scalable way to connect IT infrastructure.
From fast-growing scale-ups to established corporations, iPaaS is used today to:
Automate manual workflows
Improve data quality and reliability
Shorten lead times for system changes or growth
Increase transparency and manageability across the business
According to Mulesoft's Connectivity Benchmark Report 2023, 88% of IT decision makers said their integration needs have increased significantly - but only 28% of their applications are integrated¹. The gap is business-critical.
Common drivers behind iPaaS
Scalable growth
As your organization grows - through new markets, new teams, or more systems - iPaaS makes it possible to turn on new integrations without rebuilding everything from scratch.
Faster time-to-value
Instead of waiting weeks or months for technical implementations, new integrations can often be set up in days. This frees up development time and makes digital projects more profitable faster.
Better informed decision-making
iPaaS makes it easier to gather data from multiple sources into one reporting or analytics platform, empowering CFOs and analysts to make data-driven decisions.
Strengthen data protection and compliance
With built-in logging, authentication and encryption, modern iPaaS solutions help organizations meet requirements such as GDPR, NIS2, and industry-specific regulations.
Better user experience
Customer journeys, onboarding flows, and internal processes become more seamless when data follows you through the entire chain - from first contact to repeat purchase.
iPaaS is not just an integration tool - it's a catalyst for faster digitization, better business decisions and stronger customer experience.
iPaaS solutions are used today in a variety of contexts - from connecting business-critical systems to automating everyday tasks. What they have in common is that these integrations create business value, regardless of industry, size or technological maturity.
Here are some of the most common and effective uses of iPaaS:
Connecting ERP, CRM and BI
A classic but often complicated case: the financial system (ERP), the sales support (CRM) and the analytical tools need to talk to each other. Without an integration platform, data transfer is often done manually - leading to errors, delays and low confidence in the numbers.
With iPaaS:
Customer data from CRM flows automatically to ERP
Business events are passed on to BI tools in real time
CFO and sales manager see the same KPIs - simultaneously
Automation between cloud applications
Many businesses use cloud services such as HubSpot, Salesforce, Zendesk, Slack, Fortnox or Trello - but the systems are not connected. This leads to duplication, fragmented communication and lost cases.
With iPaaS:
Integration of internal and external systems
iPaaS is also an effective tool for managing integrations between internal systems (on-premise) and external services (cloud). This is especially true in hybrid environments, where many legacy systems are still in operation.
Common examples:
Integration between production systems and central ERP
Real-time flows from IoT sensors to BI solutions
Automated orders from e-commerce to logistics partners
Support for data quality, validation and traceability
Companies working with critical data points (e.g. in finance, healthcare or logistics) use iPaaS to ensure data quality at every step.
iPaaS enables:
Validation of incoming data before it is used
Notifications in case of errors or anomalies
Full logging to meet internal or external audit requirements
Integration as a service for partners and customers
Some companies use iPaaS not only internally - butto offer integrations as part of their own service offering. One example is SaaS companies that provide their customers with ready-made integrations with other systems.
iPaaS provides:
Ability to create and reuse ready-made connections
Scalable integration to multiple customers simultaneously
API management as part of the customer experience
iPaaS makes it possible to move from project-by-project integration to a strategic, scalable and controlled architecture. It saves time, reduces errors and unleashes innovation.
Systems integration is nothing new. But the way we integrate has changed - fast. From heavy point-to-point connections to cloud-based platforms that handle hundreds of integrations in parallel. To understand iPaaS, it's important to see how it differs from other options.
Here we compare some of the most common approaches and what makes iPaaS a modern choice:
Point-to-point integration
What it is:
Direct connection between two systems - often via API or file transfer.
Benefits:
Quick to set up
Good for single, stable integrations
Limitations:
Difficult to scale - each new connection requires new development
Low visibility and traceability
Dependent on personal knowledge ("who built what?")
Quickly becomes a maintenance problem in organizations with more than 3-5 systems.
Middleware / ESB (Enterprise Service Bus)
What it is:
A software solution that acts as a hub between systems, often on-prem.
Benefits:
Centralized logic
High control in large, complex IT environments
Limitations:
Often requires heavy configuration and specialized skills
Not built for cloud applications or rapid change
Long time-to-market
Best suited to legacy IT architectures - but can slow innovation in modern environments.
ETL tools (Extract, Transform, Load)
What it is:
Tools for extracting data from a source, transforming it and loading it into a target - often for reporting or analysis.
Benefits:
Good for large data volumes
Common in data warehouse and BI environments
Limitations:
Not real-time based
Based on batch processing
Not suitable for application integration or two-way flows
ETL often complements iPaaS - but does not replace it.
iPaaS - cloud-based integration platform
What it is:
A platform service for building, managing and monitoring integrations - often via visual interface.
Benefits:
Scalable and quick to implement
Works with both cloud services and on-premises systems
Built-in logging, data validation and API management
User-friendly (low-code or code-free)
Built for an environment where change, speed and security are standard requirements.
Comparison table
|
Function/Method |
Scalability |
Real time |
Cloud support |
Overview |
TCO |
|
Point-to-point |
Low |
Yes, point-to-point |
Limited |
Low |
High |
|
Middleware/ESB |
Medium |
Yes, it is |
Weak |
Medium |
High |
|
ETL |
Low |
No, no, no |
Yes, yes, yes |
Medium |
Medium |
|
iPaaS |
High |
High Yes |
High Yes |
High |
Low/Medium |
¨
So iPaaS is not just a technology - it's a new way of thinking about integration. A platform where speed, visibility and control are not compromises - but basic requirements.
Not all iPaaS solutions have the same capabilities. What sets a modern, scalable integration platform apart from simpler tools is how well it manages the entire integration lifecycle - from setup to monitoring and evolution.
Here are the key features that characterize a robust iPaaS solution today:
A user-friendly interface to build integrations by dragging and dropping components. This:
Reduces the need for specialized expertise
Increases the speed of development
Enables IT and business to work together
Example: Set up a flow that triggers an update in CRM when an invoice is created in ERP - without writing a line of code.
Many businesses still have a hybrid landscape. A modern iPaaS must therefore:
Manage integrations between cloud/cloud, cloud/on-prem and on-prem/on-prem
Communicate with legacy systems, REST/SOAP APIs, file servers, databases, etc.
Example: Connecting an on-prem production system to a cloud-based BI tool.
Modern business decisions require real-time data. An iPaaS should therefore offer:
Event-driven flows (event-based)
Scheduled jobs (cron-based)
Combinations where needed
Example: Update dashboards automatically every time a new order is placed.
Integration is often a blind spot in data protection efforts. A serious iPaaS includes:
Important to meet requirements from GDPR, NIS2, HIPAA, and other regulations.
No integration is better than the data it handles. That is why it is needed:
Example: Stop an integration if a customer number is missing or invalid - and automatically send an error message to customer service.
To act as a digital hub, iPaaS needs:
Example: Create an internal API where external systems can retrieve updated product prices in real time.
To reduce implementation time, the platform should offer:
Example: 1-click connection to Fortnox, HubSpot or Microsoft Dynamics 365.
A strong iPaaS is not just about integration, but about creating a transparent, secure and flexible infrastructure for the future.
iPaaS is not a solution for the future - it's a solution to a growing problem today. As more and more organizations move towards digital, data-driven and decentralized ways of working, integration becomes a bottleneck. iPaaS makes it possible to solve this structurally, rather than reactively.
But how do you know if it's time to implement an integration platform? Here are some clear signals:
You manage many manual data flows
Reporting, case management, financial management - all done with manual export/import files or via cut-and-paste in Excel.
What iPaaS does:
Replaces manual flows with automated integrations
Saves time, reduces errors and improves decision support
You have more than three business-critical systems:
It's hard to know what's happening in the business because the systems are not connected. CRM, ERP and e-commerce have different versions of reality.
What iPaaS does:
Creates a common data warehouse without changing systems
Makes it easier to grow and develop new services
New systems take too long to implement:
Each new tool requires specialized solutions, manual loading or consultants building point-to-point connections.
What iPaaS does:
Makes it easy to add, replace or scale systems
Frees IT from integration as a bottleneck
You lack control over data quality and logging:
Incorrect numbers in reports, difficulty tracking where errors occur, no overall picture of what flows between systems.
What iPaaS does:
Validates data, tracks errors and ensures accuracy
Gives increased confidence in business numbers
You need to meet increased security and compliance requirements:
GDPR, NIS2, industry regulations - while data traffic moves between cloud services and internal systems.
What iPaaS does:
Built-in encryption, traceability and access control
Facilitates auditing and reduces regulatory risk
Typical organizations investing in iPaaS:
Growing companies that are rapidly adding new systems
Companies undergoing digital transformation
Public sector modernizing IT architecture
SaaS companies offering integrations to customers
CFOs and CTOs who need better control and efficiency
As systems multiply and demands increase - the integration platform becomes the hub that holds everything together.
iPaaS is not just about technology - it's about making your business more profitable, flexible and sustainable. By centralizing integration, you not only get better system communication, but also measurable impact across your organization.
Here are the key benefits - from a business perspective:
Less manual work, fewer specialized solutions and reduced technical debt mean lower costs in both the short and long term.
Example:
Reduced support costs
Shorter implementation time for new systems
Fewer consulting events per integration
When data flows automatically, employees can focus on analysis, strategy and customer value - not administration.
Example:
The finance department does not have to double-check data
Sales always has up-to-date customer information
IT no longer has to maintain fragile connections
iPaaS enables real-time data throughout the chain - from ERP to BI. This means that decisions are based on facts, not gut feelings.
Example:
With built-in traceability, access control and encryption, iPaaS helps meet regulatory requirements.
Example:
iPaaS makes it easier to replace systems, test new services and scale solutions - without the IT structure falling down.
Example:
Fewer custom builds and more standardized flows mean that knowledge stays in the organization - even when key people leave.
Example:
iPaaS is an investment in control, quality and capacity - at system, operational and strategic levels.
Lundatech Business Cloud is an integration platform that makes it possible to connect your organization's most important systems - whether they're in the cloud, on-premises or with a partner. Here are some real-life scenarios that show how the platform is used in practice.
Challenge: The finance department had to spend hours each month manually collecting data from ERP, CRM and project tools. The data came in different formats, creating errors and delays in financial statements and reporting.
Solution with Business Cloud:
Automated integrations between ERP, CRM and Power BI
Real-time update of key figures in dashboards
Data validation that stops errors at the source
Result:
Monthly accounts could be closed two days earlier
Increased confidence in the numbers in the management team
Fewer support cases around reporting errors
Challenge: The IT department was managing over 30 point-to-point integrations built over several years. Documentation was poor and each new update risked downtime.
Solution with Business Cloud:
Centralized integration platform with visual overview
Migration from old ESB to Lundatech Business Cloud
User management and version control for API connections
Result:
Shorter time to debug integrations
Reduced technical debt
Increased change capacity when changing systems
Challenge: The e-commerce platform was not linked to warehouse and financial systems. Order status had to be checked manually, causing delays and errors in customer communication.
Solution with Business Cloud:
Integration between e-commerce, ERP and carrier
Automatic updates of stock status and delivery notifications
Customer service portal linked to real-time data from all systems
Results:
Shorter lead times from order to delivery
Fewer returns and misunderstandings
Increased customer satisfaction
The platform's strengths in practice
|
Functionality |
Example of benefits |
|
Real-time integration |
Always up-to-date figures in reports |
|
Visual flow management |
Shorter implementation time |
|
Data validation & logging |
Higher data quality and traceability |
|
Scalability |
Easy addition of new systems and business areas |
|
GDPR compliance |
Audit completed without common issues |
With Lundatech Business Cloud as a hub, you don't just get technology - you get control, flexibility and clarity throughout your digital structure.
Adopting an iPaaS solution is a strategic step - and it should be taken at the right time. This checklist will help you quickly determine if your organization has a need that warrants a more structured approach to integration.
Go through the points below. The more you answer "Yes" to - the more you can benefit from an iPaaS platform.
System environment & data communication
We have more than three business-critical systems (ERP, CRM, HR, e-commerce, etc.)
Our systems are not fully integrated - data is often moved manually
We have repeated problems getting the same figure in different systems
Our reporting often requires manual compilation in Excel
Time & resources
New system integrations take a long time to develop
We have a patchwork of old integrations that only one person understands
The IT department spends more time on firefighting than innovation
We rely on consultants to maintain or troubleshoot integrations
Data quality & insight
We find it difficult to trust our key figures in real time
Inaccurate or late data has led to wrong decisions
We lack traceability in how data moves between systems
We have challenges in meeting GDPR or other compliance requirements
Business agility
It is difficult to change one system without affecting others
We have lost momentum in our digitalization due to technical debt
We want to be able to offer integrations to our customers or partners
We see a need to scale the business without rebuilding everything from scratch
What does your checklist show?
The next step? We help you map the current situation and provide a concrete proposal for a solution.