By Betsy Burton
A Leader in the iPaaS Market but Not tPaaS – Here’s Why
Why are some of the leading providers of iPaaS not leading in this new tPaaS market?
The short answer is that it is because the tPaaS (Transformation Platform as a Service) market requirements are much more than the iPaaS market, and some of the leading providers have not chosen to extend their offerings to support the business strategy and planning capabilities needed to compete in this new market.
But let me explain in more detail.
tPaaS is a Superset of Both the iPaaS and EiPaaS Markets
The iPaaS (Integration Platform as a Service) and EiPaaS (Enterprise Integration Platform as a Service) are both focused on integrating applications, data, messages, etc. They provide a lot of the critical capabilities needed to integrate back-end and front-end systems such as EDI, low-code development, file and, data transfer, etc.
Both primarily focused on technology integration which can be used to support transformation, automation, remediation, and optimization.
But they both do not provide the tools that are needed to define your business strategy, plans, capabilities, etc that are needed to support business transformation. In other words, they are primarily IT-centric services, not business-centric services.
tPaaS Requires More
Business transformation is about developing and defining new business models and ways of engaging with your customers.
It’s not just about doing business as you’ve always done it just faster; it is about supporting whole new ways of working. Business transformation requires that organizations step back and look at their business strategy, vision and direction, and, define their future state first. Then determine what technologies need to be integrated, enhanced, or introduced.
To support tPaaS, providers need to support traditional iPaaS and EiPaaS capabilities, and they need to support the tools needed to truly define business transformation, such as business strategy planning, business capability modeling, and customer experience modeling.
tPaaS is a superset of both iPaaS and EiPaaS.
Bottom Line: Determine Your Business Need
We are not surprised that there are some of the leaders in the two markets that are not leading in the tPaaS. There will be some vendors who choose to only go after the more technology-driven iPaaS and EiPaaS market. And we believe that these markets will continue to be strong.
However, there will be some of these providers who also choose to go after the new market, and over the next 5 years, 45% of the traditional iPaaS and EiPaaS markets will move over to tPaaS.
It is critical that your business determines what its real needs are. If your business goal is to integrate existing technologies and simply automate your existing business, then iPaaS and EiPaaS may just be right for you. If your organization is trying to support a business-first and strategic approach, then the tPaaS market makes a lot more sense.
Look for providers that support your business needs first. For more information on this market and its requirements see our on-demand webinar.
Catch Betsy and the rest of our Aragon Research analysts LIVE at #TransformTour23!
Kickoff the Summer with Aragon Research’s next #TransformTour23 stop!
Since the launch of OpenAI’s GPT service, organizations have been scrambling to put out their own copilot service. In our June Transform Tour, taking place on Thursday, June 15, 2023, we will discuss how Copilots work and how you can define a strategy to support digital labor.
