This is the third article in a 6-part series on why business software vendors should consider data and application integration an imperative, and an overview of how ISV's can quickly benefit from leveraging integration platforms.
The first two articles are:
1) Introduction: Software Vendors - Integrate "or else"
2) Fast ISV Success Through Cloud-Integration: Migration Services
Use Case #2: Integration Services
The first use case (migration services) was about using integration technology to get a new product up and running - fully loaded with data. It was a one-shot use of integration. The integration capabilities may or may not have been embedded into the software solution itself.
Integration Services is about the repeated use of integration - embedded into the ISV's software solution.
Two Common Situations
The two most common situations where integration services are used in software solutions are: "integration hooks" and "client on-boarding".
For example, if I were a provider of sales force enablement software, I may want to provide integration "hooks" into accounting packages as well as customer support software. When a prospective client becomes a customer, the financial applications would automatically get updated and invoices generated. Customer information would automatically be sent to the customer service applications (avoiding any potential customer satisfaction issues should the customer need help right away).
Another case where ongoing integration capabilites are strategically important is client on-boarding with "service providers". These service providers are companies that are heavily dependent on in-house created software. They "on-board" clients and perform services for these clients that the clients do not want to do themselves. In many cases, services providers do a better job and can result in cost savings.
A common service provider example is "Billing". Client companies continue to enter data into their accounting systems. But rather than do the billing themselves, they ship the data to the "service provider" who takes care of it for them.
The issue there is that there are a myriad of different data and application formats, business rules, etc. Onboarding a new client can be a significant effort. Backlogs are common. I have spoken to service providers who have needed 2-3 weeks per client to on-board them, and have had backlogs of up to 9 months. That's a pretty severe impediment to business.
What's the Value?
Integration Services create a stronger value proposition for ISV solutions. They do this by enabling things that are not possible otherwise - enabling business processes that span multiple applications and managing business rules and data across applications. They also do this by driving down the total cost of ownership for the customer. After all, if the ISV doesn't provide integration capabilities, the customer will have to do it. Either building it themselves, or doing the work manually.
From a strategic standpoint, many software vendors find themselves competing against the "mega platform vendors" who offer a one-stop shopping solution that is already integrated. By providing embedded integration services, the playing field is levelled considerably.
Cloud or On-Premises Integration?
At the risk of repeating what I said before in "Integrate or else" and "Is Your Integration Stack a Dinosaur", the "locus" of data and applications is moving increasingly faster into Cloud-based systems. There is a lot of old on-premises integration software out there that just won't cut it in an increasingly Cloud-based world.
Even for on-premises software, a Cloud-based integration stack should be the default answer unless there is a compelling reason to choose otherwise. Among other reasons, a Cloud-based integration stack can help provide a migration strategy if your company plans to move from being an "on-prem" to a SaaS solution provider.
And Cloud-based means "built from Day One for the Cloud". No re-treads or hack-jobs please.
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