New Market Globe: tPaaS Market Will Surpass the iPaaS Market

By Betsy Burton

I am so pleased to get to share with you that Aragon Research has just released our Aragon Research Globe for the tPaaS market for 2022. We believe the tPaaS market is a critical up-and-coming market as organizations seek to not just remediate, evolve or automate their business, but really transform their business models and operations. 

To read this Aragon Research Globe and other research notes about this market, check out the following research:

•       The Aragon Research Globe™ for Transformation Platform as a Service, 2022
•       Top Five Questions and Answers About tPaaS Market
•       The Future of iPaaS Is Digital Business Transformation
•       Introducing the tPaaS Market: Empowering Business Transformation

tPaaS Includes iPaaS, and Much More

For years, organizations have leveraged iPaaS services (integration platform as a service) to extend, evolve and automate their business. The good news is that iPaaS offers have enabled businesses to integrate new and existing applications, data, processes and services and scale by providing the middleware services IT needs within the cloud. The challenge is that iPaaS is a technology-driven solution. In other words, it has primarily been used by IT professionals or technology leaders to automate or evolve their current business. Business transformation needs much more.

Business transformation is first and foremost a business model and operations change, which requires defining new business strategies, capabilities, value streams, operating models, business processes, and often, organizational change management. This business transformation must be supported and guided by both business and technology leaders, however, they are approaching the opportunity as “technology-enabling” business transformation; a partnership with a business focus first. This means tPaaS providers must support business model design and operations as much as supporting the integration of technologies and services.

tPaaS Requires Outside-In Thinking

The big mindset change that tPaaS requires is that of looking at the business opportunities from an outside-in perspective rather than inside-out. With outside-in thinking, organizations design their business models, processes, and services with the customer’s perspective as the starting point—not the endpoint. And even more, it means starting with the perspective of your potential future customers, and their business ecosystem.

For iPaaS providers that is a significant mindset change as well. They must move beyond approaching their customer with a technology-first approach, to approaching their customers with a business-first approach. Many applications and solution providers have already made that shift (e.g. Salesforce, SnapLogic, Oracle). However, this is a challenge for many of the traditional integration providers (Boomi, Informatica, TIBCO). 

tPaaS providers must provide the business strategy and architecture tools and services so that organizations can define their business transformation, and then offer the services to integrate the technology to support this business transformation.

What Are We Saying with the Aragon Globe?

I would encourage any providers of iPaaS, business process management, data integration services, and applications to look at this globe to see if there is an opportunity for them. Further, I would encourage any business architecture tools providers and business consultants to study this globe to look for new business and partnering opportunities. 

Looking at this Aragon Research Globe overall, it is important to note that all of the major providers are fairly far to the left in the leaders quadrant. This is intended to illustrate what a new and emerging market it is. Further, it is important to note that some of the traditional leading providers of iPaaS are not leading in this market. This is because they have not demonstrated the focus on the business-first or outside-in business approach. 

We do believe this market will evolve quickly. There are just too many end-user organizations looking to support business transformation, and too many traditional iPaaS providers looking for new market opportunities.

Bottom Line

Aragon Research is excited to release this new market research and is dedicated to following this market evolution with tPaaS provider deep dives, market forecasts, best practices, sample RFPs, etc. End-user organizations should follow this market closely, especially if they are focusing on business transformation efforts. Service providers are encouraged to follow this market if they are looking for new market growth opportunities.

And, as usual, clients are welcome to call Aragon Research to schedule an inquiry to discuss their specific needs and issues.