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6/8/22, 3:12 PM Gartner Reprint

Licensed for Distribution

Magic Quadrant for Enterprise Integration Platform as a


Service
Published 29 September 2021 - ID G00736373 - 55 min read

By Eric Thoo, Keith Guttridge, and 3 more

IT and business-oriented roles increasingly adopt EiPaaS as a key component of their integration
strategy. Despite its mainstream use, choices of providers are fragmented and difficult to
navigate. This research assesses 17 vendors to help software engineering leaders select EiPaaS
solutions.

Market Definition/Description
Gartner defines enterprise integration platform as a service (EiPaaS) as a combination of integration
technology functionalities that are delivered as a suite of cloud services and designed to support
enterprise-class integration initiatives. An EiPaaS provider offers high availability, disaster recovery,
security, SLAs and technical support. It also enables users to develop and execute multiple
integration scenarios by providing support for multiple personas. The EiPaaS vendor must fully
manage platform operations, patching and upgrades.

EiPaaS offerings are public, stand-alone products that subscribers use directly, as opposed to
integration capabilities embedded in another offering (such as a SaaS application or application
PaaS).

Magic Quadrant
Figure 1: Magic Quadrant for Enterprise Integration Platform as a
Service

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Source: Gartner (September 2021)

Vendor Strengths and Cautions

Boomi

Boomi is a Leader in this Magic Quadrant. It offers the Boomi AtomSphere Platform, which provides
application, data and B2B/electronic data interchange (EDI) integration, API management, low-code
application development and master data management (MDM).

Boomi is based in Chesterbrook, Pennsylvania, U.S., and its operations are geographically distributed.
It is a wholly owned subsidiary of Dell Technologies. However, on 2 May 2021, Francisco Partners and
TPG Capital — two private equity firms — entered into a definitive agreement to acquire Boomi. The
acquisition is expected to close by the end of 2021, subject to closing conditions. Boomi’s customers
are primarily in North America, followed by EMEA and APAC, across diverse vertical sectors. Boomi is
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increasing its partnering with local system integrators (SIs) and independent software vendors (ISVs)
across EMEA and APAC to extend its market reach.

Strengths
■ Market understanding: Boomi demonstrates a strong understanding of EiPaaS market trends by
offering a functionally rich platform that appeals to small, midsize and large enterprises alike.
Boomi caters to both technical and ad hoc integrators with its low-code application development,
data catalog and data preparation capabilities, enabling its customers to pursue their composable
enterprise vision.

■ Marketing strategy and traction: Boomi is one of the most recognized brands in the EiPaaS
market. Customers perceive Boomi as an innovative company that serves as a reliable, trusted
provider. Boomi’s products and services address key customer challenges relating to business
integration, automation, the Internet of Things (IoT), event-driven architecture (EDA), and catalog
(via the Unifi Software acquisition), to support the integration strategy empowerment team.

■ Vertical industry strategy: Boomi has been especially effective in targeting specific industry
verticals for growth, including higher education, retail, life sciences, healthcare and financial
services. Customers in these industries stand to benefit from its vertical packages, accelerators
and services.

Cautions
■ Postacquisition strategy: As Francisco Partners and TPG Capital close on the acquisition of
Boomi, prospective customers should stay informed about any resulting changes to the company’s
corporate strategy, partnerships and services. Though a downsizing of the overall key product lines
is unlikely, given Francisco Partners and TPG Capital have historically proven to invest in portfolio
company growth, prospective customers should ensure that Boomi’s strategy and roadmaps
continue to align with their organizations’ goals.

■ Product roadmap: Boomi’s roadmap is designed to improve the overall integration landscape and
to enable automation and composability, but its longer-term plans may be subject to change due to
the acquisition. Prospective customers should evaluate AtomSphere and other Boomi products
based on their current functionality and shorter-term roadmaps (over the next six to 12 months).

■ Pricing: Boomi has started revamping its pricing model — especially for large configurations and
consumption-based workloads — but our interactions with clients indicate that they desire further
pricing improvements and have concerns about potential price increases postacquisition.

Celigo

Celigo is a Niche Player in this Magic Quadrant. It offers Celigo integrator.io, an EiPaaS focused on
enabling both IT and business users to perform integration and automation. It is offered in five

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editions — Starter, Standard, Professional, Premium and Enterprise. Celigo’s EiPaaS provides
prepackaged integrations and connectors, such as Celigo Integration Apps and Quickstart Templates,
and Integration App Framework to enable clients and third parties to build and monetize custom
integration apps.

Celigo is based in San Mateo, California, U.S., and its operations are primarily focused in the U.S. Its
customer base is primarily in retail, technology, manufacturing and services industries, many
involving Oracle NetSuite-related integration. Celigo is actively recruiting new partners and deepening
existing channel relationships to extend services and commercial capabilities outside the U.S.

Strengths
■ Offering strategy: Celigo’s EiPaaS helps customers to mature their integration strategy and
improve productivity by enabling nontechnical and business users to build self-service-oriented
integrations. Its prepackaged Integration Apps and Integration App Framework are especially
attractive to customers and prospects seeking rapid time to value, particularly among midsize
organizations.

■ Sales execution and pricing: Celigo’s investments in sales, marketing and channel partnerships
contributed to an above-average market growth rate of 52% in 2020. It increased its paying
customer base to more than 3,800. Celigo’s transparent pricing, and its free and low-cost entry
offerings are key points of value to customers seeking to incrementally adopt EiPaaS capabilities.

■ Customer experience: In Gartner inquiry sessions, customers who implemented Celigo


intregrator.io expressed a high level of overall satisfaction, especially in contract negotiations,
evaluations, service and support.

Cautions
■ Geographic presence: Celigo’s market presence is predominantly in North America, where it has
nearly 74% of its customer base, followed by Europe at 15% and Asia/Pacific at 8%. Celigo plans to
invest in sales, operations and partnerships in Asia, Latin America and the rest of the world to
expand its geographic reach.

■ Market perception: Celigo’s ease of use sometimes means that its capabilities as a strategic
platform are not obvious to prospective customers. This perception, combined with its relatively
limited presence in competitive bids and vendor selection shortlists as seen by Gartner, may cause
prospective customers to overlook Celigo’s offering.

■ Access to skills: Although integrator.io’s ease of use and reduced dependence on specialist
integrators are differentiators, organizations want increased access to available skills for Celigo’s
offerings to help implement and maintain deployments as their requirements grow.

Huawei
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Huawei is a Niche Player in this Magic Quadrant. It offers ROMA Connect, a platform that provides
application and data integration capabilities and API management features.

Huawei is based in Shenzhen, China, and its operations are mainly focused in APAC (with some
presence in the United Arab Emirates and Russia). Its customers are enterprises of all sizes, primarily
in government, education, manufacturing, smart cities and energy sectors. Huawei plans to expand
its data center coverage to support Latin America and EMEA regions.

Strengths
■ Vertical industry strategy: ROMA Connect is especially effective at targeting specific industry
verticals for growth, including government, higher education, manufacturing and energy. It offers
these specific industry suites on the ROMA Connect Exchange as optional add-ons and plans to
introduce suites for additional industries in 2021.

■ Sales execution: Huawei reported exceptional growth in the EiPaaS market for 2020, exceeding
four times its revenue, as well as its customer growth. More than 3,500 customers now use ROMA
Connect. This rapid growth is the result of the vendor’s decades of experience serving enterprise
customers as well as the synergy of integration offerings with Huawei’s hardware and
telecommunications business.

■ Operations: Huawei uses DevOps practices and zero downtime upgrades by leveraging HUAWEI
CLOUD stack to enable hybrid and private deployments, providing customers with a highly reliable,
scalable platform.

Cautions
■ Market reach: More than 90% of ROMA Connect customers are in the APAC region, with some
customers in EMEA and the Americas. Customers outside of APAC should ensure they are
comfortable with the level of support, restrictions or expertise that Huawei provides in their region.

■ Innovation: ROMA Connect has many of the technical integration features one would expect to see
in an EiPaaS, but Huawei is late to begin using artificial intelligence (AI) in its integration
technologies. Huawei plans to add AI-augmented integration features in 2021 to catch up to other
EiPaaS vendors.

■ Platform versatility: ROMA Connect focuses on core integration paradigms, such as APIs and EDA,
but it lacks B2B-/EDI-focused features. It offers robotic process automation (RPA) via a third-party
provider. Prospective customers should ensure they are comfortable with the level of influence and
control that Huawei provides for these features.

IBM

IBM is a Visionary in this Magic Quadrant. It offers Cloud Pak for Integration as a Service for
enterprise IT teams and integrators, which includes: IBM App Connect for application integration; IBM
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API Connect for API management; IBM DataPower Gateway for security; IBM MQ for messaging; IBM
Event Streams and Confluent Platform for IBM Cloud Pak for Integration for event streaming; and IBM
Aspera for managed and high-speed file transfer. IBM App Connect is also available as a stand-alone
offering to help line-of-business users create automations and integrations using its no-code tooling.
Cloud Pak for Integration as a Service leverages IBM’s broader automation capabilities, including
process mining, task mining and RPA.

Based in Armonk, New York, U.S., IBM’s operations are geographically diversified, and it has
customers across all industries. IBM plans for its managed service to be deployable on Amazon Web
Services (AWS) and Microsoft Azure clouds via IBM Satellite.

Strengths
■ Market understanding: IBM has developed a strong understanding of complex enterprise
integration challenges during its nearly 30 years of experience in providing integration software. Its
platform aligns with customer needs by supporting hybrid and multicloud integration, event-driven
architectures, multiple user personas, and AI-augmented features for integration development and
operations.

■ Product strategy: IBM refined its IBM Cloud Pak strategy to deliver a consistent platform that can
run across IBM Cloud, private cloud and — soon — AWS and Microsoft Azure clouds. In addition to
resolving this gap in its operating model, IBM has further expanded its platform functionality by
adding task mining, process mining and RPA capabilities across all Cloud Paks.

■ Geographic strategy: IBM’s EiPaaS offerings can be deployed to any of IBM’s 60 data centers
across the world. It also provides a global professional services and partner network to provide
customers with local expertise and service.

Cautions
■ Fragmented offering: IBM’s EiPaaS capabilities are distributed across three distinct business units
— IBM Cloud Pak for Integration as a Service and IBM App Connect, IBM Cloud Pak for Data as a
Service for data integration, and IBM Sterling Supply Chain. Despite IBM’s progress in
homogenizing operating models and user experiences, its business units may have divergent
priorities that complicate adoption for customers who need a combination of application, data and
B2B integration capabilities.

■ Marketing execution: IBM has changed the name of its platform several times, and its messaging
focuses on hybrid cloud that mixes software and as-a-service operating models. As a result, many
prospective customers still believe that IBM focuses on building cloud-ready integration software
and lack awareness of its EiPaaS rendition of IBM Cloud Pak for Integration or its evolution from
the former IBM Cloud Integration offering. IBM plans to include new marketing activities to
address EiPaaS awareness.

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■ Customer experience: Although IBM’s EiPaaS gets consistent reviews of increasing satisfaction
across a variety of criteria and sources, its overall averages are among the lower end of this year’s
Magic Quadrant entrants, with customers citing cost of product and a steep learning curve as
areas for improvement.

Informatica

Informatica is a Leader in this Magic Quadrant. Informatica Intelligent Cloud Services (IICS) is an AI-
powered microservices-based offering that provides application, data and B2B integration, and
supports API integration, MDM and data quality, governance, and privacy features. IICS and
Informatica’s on-premises integration software can be managed on a common platform environment
based on a hybrid integration platform (HIP) model.

Based in Redwood City, California, U.S., Informatica’s operations are geographically diversified and it
has customers across all industries. As part of enhancing its global platform deployment and
operations, Informatica recently launched new Azure-based data centers in EMEA (Germany) and
APAC (Singapore) to better support customers’ technical and compliance requirements.

Strengths
■ Market understanding: Informatica’s EiPaaS continues to achieve a leading market share.
Informatica provides a unified platform for integrating data, applications, APIs and ecosystems. It
capitalizes on a growing need for integration to support a balance of IT and business personas,
trends of metadata enrichment, data integration hubs, data catalogs, data quality/governance,
convergence of application and data integration, microservices architecture, and data fabric
approaches for composable business strategies.

■ Offering strategy: Informatica is broadening its cloud and hybrid ecosystem as part of its cloud-
neutral strategy. IICS is well suited for multicloud and hybrid integration platform implementations.
IICS offers many capabilities and architectural options for organizations undertaking vast
initiatives for modernizing integration infrastructure, and those looking for a broad ecosystem.
(Informatica’s ecosystem includes Microsoft Azure, AWS, Google Cloud Platform [GCP], SAP,
Snowflake, Databricks, Tableau, NTT, MongoDB and DataRobot.)

■ Innovation: Informatica is focused on building an autonomous platform, powered by AI, that


dynamically adapts to diverse users, data types and use cases. Informatica’s vision aligns with
customer demand for augmented intelligence, automation, and metadata-activated application
and data composition.

Cautions
■ Customer on-premises-to-cloud migration experience: Informatica customers who are looking to
migrate their existing on-premises workloads to IICS have expressed a desire for Informatica to
improve its technical support and incident interactions. To accelerate these efforts, Informatica
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has a dedicated program that includes automated migration utilities, a team exclusively focused
on these customers, and tools to make this switch.

■ API/application integration marketing awareness: Most IICS customers use the platform for data
management use cases, as they are drawn to Informatica’s strong data integration capabilities.
However, due to marketing awareness, relatively fewer customers use it for API-based application
and process integration even though Informatica has these capabilities.

■ Marketing execution: Informatica has an ambitious roadmap to synergize its EiPaaS offering with
an extended range of automated operational and data intelligence. This complexity could
overwhelm organizations that are less technically advanced.

Integromat

Integromat is a Niche Player in this Magic Quadrant. It provides a no-code visual builder that enables
both IT and business users to integrate systems, APIs and business processes. It is offered in three
editions — Standard, Business and Enterprise. It offers more than 750 prebuilt integrations and
templates for citizen integrator opportunities.

Integromat is headquartered in Prague, Czech Republic. Integromat was acquired by Celonis on 14


October 2020. With a customer base primarily in North America and EMEA, Integromat is expanding
its market reach through other technology providers to enhance its partner network.

Strengths
■ Ease of use: Integromat’s visually responsive, tree-like interface simplifies integration by providing
users with standardized APIs and tools. It continues to invest in its prepackaged integrations to
better enable citizen integrators to build automations. It has plans to increase the number of
prebuilt templates offered and also to use AI for next best actions as the product matures.

■ Customer satisfaction: Integromat customers gave positive feedback in Gartner inquiry sessions,
especially with regard to its pricing and its evaluation and contracting, including its pricing
transparency and variety of pricing models.

■ Sales execution: Integromat added more than 9,500 paying customers in the past year, of which
10% are enterprise customers. Integromat has a shorter sales cycle than most other EiPaaS
vendors, so customers can implement use cases immediately.

Cautions
■ Platform versatility: Integromat focuses on API-led integration, but it lacks strong capabilities for
data integration, MDM, B2B integration and API management.

■ Emerging use cases: Integromat provides core capabilities to support enterprise integration.
However, it still needs to improve its use of AI-augmented integration and expand its support for
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emerging use cases like RPA and digital integration hub. Integromat plans to improve these
capabilities during the latter half of 2021 and in 2022.

■ Marketing execution: Integromat has low visibility compared to the other vendors who qualified for
this Magic Quadrant. Its sales strategy primarily focuses on lines of business (LOBs) while also
supporting integration specialists. Of the Gartner clients who are aware of Integromat, many
perceive it as a tactical automation tool geared toward LOBs for specific automation scenarios.

Jitterbit

Jitterbit is a Visionary in this Magic Quadrant. Its EiPaaS, Jitterbit Harmony, integrates diverse cloud,
interenterprise and on-premises environments, and provides API creation and management and B2B
support via its recent acquisition of eBridge Connections. Jitterbit offers solutions for ISVs and SaaS
providers, including embedded integration capabilities.

Based in Alameda, California, U.S., Jitterbit’s customers are mostly small and midsize organizations
in the manufacturing, technology, healthcare, retail, media, education and nonprofit sectors. Jitterbit
is increasing its investments for developing deeper enablement through partner solution
development, go-to-market toolkits, and channel sales and services.

Strengths
■ Product capabilities: Jitterbit enables diverse user personas to deliver integration and continues to
enhance collaboration, scalability and performance. It provides many solution templates and
“recipes” for automating key integration use cases, increasingly through machine learning (ML)-
augmented capabilities to assist with integration development. The Harmony platform has a
marketplace for process integration packs for ease of sharing solution templates among users.

■ Customer experience: Gartner clients have reported positive feedback about the breadth of
capabilities that Jitterbit provides, as well as for its integration deployment, product support and
technical documentation to support platform users.

■ Operations: Jitterbit’s Harmony platform has high availability across the NA, EMEA and APAC
regions. The platform has demonstrated long-term stability and provides strong disaster recovery
capabilities. Its support for hybrid deployment, its high-volume throughput, and its observability
and compliance features make the platform suitable for enterprise-grade adoption.

Cautions
■ Sales execution and pricing: Jitterbit has the least revenue growth among providers in this Magic
Quadrant, resulting in a notable decline in its existing small market share. Its revenue increase in
2020 was about half of the overall iPaaS market growth rate. Customers understand its pricing
model but have expressed some concerns about the degree of pricing transparency when
integration complexity grows.

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■ Span of enterprise buyers: Although Jitterbit has continued to expand its customer base, its
historical tractions with the small and midsize business (SMB) segment have resulted in some
larger enterprises not considering Jitterbit in their initial selection process. Jitterbit has a relatively
limited market presence among large enterprises globally, compared with major competitors.

■ Availability of skills: As implementation needs increase, some Jitterbit customers have cited
challenges in accessing the skills and expertise required to support their integration projects.

Microsoft

Microsoft is a Leader in this Magic Quadrant. It offers Azure Integration Services (AIS), which
includes Azure Logic Apps (to create workflows and orchestrate business processes), Azure API
Management (for full life cycle API management), Azure Service Bus (a message queuing and
publish-subscribe service), Azure Event Grid (a massive-event ingestion service) and Azure Data
Factory (for data integration).

Based in Redmond, Washington, U.S., Microsoft has geographically distributed operations. It has
customers across all industries. Microsoft is enhancing deployment options for Logic Apps (currently
in preview) with the ability to run integration services outside of the Azure cloud, such as in AWS and
GCP.

Strengths
■ Geographic strategy: AIS has a global footprint and is supported by Microsoft’s strong
international network of commercial and support partners. AIS supports all major industry
standards, which vastly expands its global footprint. Most AIS components can be deployed at any
Azure data center across the globe. Microsoft plans to enable AIS for hybrid, multicloud
deployments via Azure Arc in 2021.

■ Product capabilities: AIS provides a combination of capabilities for integrating applications, data,
APIs and events, complemented by adjacent capabilities of RPA-related support via Power
Automate. Microsoft’s support for a wide range of integration use cases and personas helps
organizations tackle their modern integration needs.

■ Market responsiveness: AIS provides weekly updates to its platform. Microsoft has released
dozens of incremental improvements across its overall product offering, including the introduction
of a new PaaS technology with a complete set of primitives enabled for Azure Arc and integration
as the foundation.

Cautions
■ Offering strategy: Adoption of AIS is mostly confined to Microsoft-centric environments. Most of
its prebuilt solutions and templates are designed for Microsoft applications like Dynamics 365,
Power Apps and SharePoint.

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■ Customer experience: Some Microsoft customers in Gartner inquiry sessions have expressed a
desire for improved guidance, training and documentation from Microsoft to enhance the speed
and quality of their implementations — especially customers who are not well acquainted with the
Azure ecosystem.

■ Pricing: While Microsoft’s pricing is highly transparent, many customers in Gartner inquiries have
cited challenges in understanding its pricing model and in forecasting their costs for integration
projects.

MuleSoft

MuleSoft is a Leader in this Magic Quadrant. It offers the Anypoint Platform, which combines iPaaS,
API-based integration and its classic enterprise service bus (ESB) software. It is complemented by
Anypoint Exchange, Anypoint MQ and Anypoint Design Center. Its new low-code integration tool,
MuleSoft Composer is currently available for Salesforce and is planned to be available as a stand-
alone offering in the near future.

Based in San Francisco, California, U.S., MuleSoft’s operations are geographically diversified, and it
has customers across all industries. MuleSoft was acquired by Salesforce in May 2018, but it
operates as an independent entity. MuleSoft is growing its partner ecosystem — laterally through new
partners and vertically through system integrators — and enhancing its delivery capability within
MuleSoft integration practices. On 2 September 2021, Salesforce completed its acquisition of an RPA
vendor, Servicetrace, which is now a part of MuleSoft.

Strengths
■ Marketing strategy and execution: MuleSoft continues to execute well in the EiPaaS market,
registering 60% revenue growth in 2020. Both its strong marketing strategy and its ability to
effectively use Salesforce resources play crucial roles in maintaining its substantial market share
and mind share.

■ Product capabilities: MuleSoft’s Anypoint Platform is functionally rich and is especially appealing
to prospects looking for a broad, unified platform to drive digital transformation and
modernization. It combines application, data, B2B and event-driven integration; API management;
and ecosystem and microservices development.

■ Geographic strategy: MuleSoft has a strong presence in more than 70 countries, either directly or
through partnerships. Its geographically diverse operations and global infrastructure are
complemented by an expansive list of partnerships, which includes top global service
implementers with more than 15,000 certified professionals.

Cautions

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■ Market understanding: Customers generally do not associate MuleSoft with support for
nontechnical integrator personas. Its offering is primarily geared toward integration specialists,
with broad functional capabilities to handle complex integration scenarios. With its Composer
offering, MuleSoft aims to expand its support for nontechnical personas and is beginning to
address this market perception.

■ Pricing: Prospective customers have expressed a desire for MuleSoft to improve its pricing model
and negotiation flexibility. Although many MuleSoft customers in Gartner inquiries see a
reasonable correlation between its price and the value offered, they nevertheless express concerns
about its high cost relative to alternative EiPaaS offerings. MuleSoft plans to introduce usage-
based pricing models to counter this.

■ Offering strategy: Gartner’s client interactions with small and midsize organizations reveal some
concerns about the complexity of the Anypoint Platform, with some clients questioning MuleSoft’s
API-led integration focus for simpler integration use cases. Customers who underutilize MuleSoft’s
broad platform capabilities have expressed dissatisfaction, especially due to its high cost.
MuleSoft aims to position Composer as a better-fitting option for this market segment.

Oracle

Oracle is a Leader in this Magic Quadrant. Its EiPaaS offering comprises Oracle Integration (including
Process, Insight, File Server, B2B and Visual Builder Studio), Oracle Cloud Infrastructure (OCI) API
Gateway, Oracle GoldenGate, Oracle SOA Suite on Marketplace, OCI Streaming, OCI Data Integration
and Oracle IoT Cloud Service.

Based in Austin, Texas, U.S., Oracle’s operations are geographically diversified with a majority of
customers in America and EMEA, across all industries. It is increasing its ecosystem network with
ISVs, global system integrators and regional providers for delivering solutions using Oracle’s EiPaaS,
as well as investing in accelerator programs for startups.

Strengths
■ Offering capabilities and strategy: Oracle Cloud Integration has one of the broadest sets of
capabilities in the EiPaaS market. It provides application, data, B2B and API-focused integration
capabilities, along with streaming, managed file transfer, RPA, business process management and
IoT capabilities. With an increasing focus on digital integration hub enablement, Oracle is enriching
its recipes and business accelerators for digital solutions, including human capital management
(HCM), ERP, supply chain management (SCM) and customer experience (CX) applications, with
prebuilt adapters and flows.

■ Sales execution: Gartner estimates that Oracle grew its customer base above market average to
approximately 5,500 organizations. By migrating existing Oracle SOA Suite customers, Oracle is
gaining SaaS-driven customers and adding net new customers. This is largely a result of its diverse
portfolio for addressing enterprise iPaaS requirements in synergy with other Oracle technologies.
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■ Market reach: Oracle is one of the world’s largest IT companies, with a vast partner network and an
established global presence in hardware, software and services. It provides widely available
community support, training and third-party implementation services to its geographically
distributed customer base.

Cautions
■ Customer experience: Oracle’s overall customer satisfaction across a variety of criteria and
sources, is among the average of this year’s Magic Quadrant entrants. Customer satisfaction is
increasing, but some cite service and support as areas for improvement.

■ Pricing: While the pricing is competitive and transparent, during Gartner inquiry sessions some of
Oracle’s customers expressed challenges with navigating its pricing models, especially when
selecting the appropriate licensing model from its extensive range of EiPaaS solutions and
deployment choices.

■ Marketing execution: Many customers still perceive Oracle as a provider of complex, potentially
high-cost integration software. Its customer base largely comprises organizations with existing
investments in Oracle products. Customers looking to integrate non-Oracle applications may find
they need to rely on Oracle’s partner network rather than Oracle’s direct expertise; though
acquisitions like FarApp show Oracle is starting to address this issue.

SAP

SAP is a Leader in this Magic Quadrant. It offers the SAP Integration Suite, a key technology of SAP
Business Technology Platform, which provides a full range of application, data, process and business
integration capabilities, as well as event broker support (via a partnership with Solace), RPA and
MDM. SAP’s API Business Hub provides access to integration packs, APIs and events that target
specific business processes.

Based in Walldorf, Germany, SAP’s operations are geographically diversified. Most of its customers
are in EMEA and the U.S., followed by APAC, in a variety of industries such as consumer products,
professional services, oil and gas, and retail sectors. It plans to continue enhancing its platform
capabilities for technical integrators and for business leaders looking for process-oriented,
prepackaged integration content.

Strengths
■ Product capabilities: Guided by its focused vision, executive backing and industry experience, SAP
offers one of the most functional and comprehensive EiPaaS offerings. SAP Integration Suite
supports a wide range of integration scenarios, is delivered in multiple cloud environments and has
a solid global presence across all industries.

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■ Sales execution and growth: SAP has capitalized on its huge global installed base and devised
effective sales strategies to target IT- and business-oriented prospects to grow its market share.
SAP Integration Suite revenue grew by more than 50% for the second year in a row.

■ Product roadmap: SAP aims at further enriching SAP Integration Suite for both a technical
audience and for business leaders seeking process-oriented, prepackaged integration content to
increase prebuilt consumables, such as integration processes, APIs, events and application
extensions.

Cautions
■ Marketing strategy: SAP’s marketing mostly targets its existing business applications installed
base and net new customers that may not require third-party integrations. Prospective customers
may overlook SAP as a suitable choice for enterprise integration scenarios unless they involve one
or more other SAP offerings.

■ Platform versatility: Despite being widely available in multiple public, private and government
clouds in several regions worldwide, SAP Integration Suite does not yet fully support on-premises
deployments. Customers may need to rely on SAP NetWeaver Process Orchestration 7.5 for
certain on-premises use cases and this is often cited as a deterrent to adoption.

■ Offering strategy: For several features within its platform, SAP has adopted a best-of-breed
approach, drawing on vendors such as Cloud Elements, Google (Apigee) and Solace. Potential
customers should ensure they are comfortable with the levels of influence and control that SAP
can provide over those aspects of its platform.

SnapLogic

SnapLogic is a Visionary in this Magic Quadrant. It offers the Intelligent Integration Platform (IIP) in
two editions: Project Edition for entry-level opportunities and Enterprise Edition for more complex
enterprise opportunities. Developers can use IIP’s many connectors to build integration pipelines,
automate process flows and maintain reusable patterns.

Based in San Mateo, California, U.S., SnapLogic’s operations are mainly focused in North America
and the U.K. It has customers in diverse sectors including technology, retail, manufacturing,
healthcare, financial services and transportation. It plans to increase its leverage of channel partners
and global system integrators to grow market reach in South Asia, Japan, Latin America and Europe.

Strengths
■ Flexible platform: SnapLogic’s EiPaaS enables diverse integration patterns using a wide range of
connectivity and pipeline flows. It equips integrators with the capabilities to create, find and modify
reusable patterns. Customers have provided positive feedback about its functional performance
and favorable total cost of ownership (TCO).

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■ Time-to-value acceleration: SnapLogic enhanced its capabilities for reducing complexity and
increasing ease for integrating applications, data and APIs by embedding AI for guidance and
automation to infer, predict and propose next best steps in integration design. Its application of AI
and automation can help optimize connectivity between endpoints.

■ Resonance for hybrid requirements: SnapLogic supports hybrid integration platform requirements
for composite services, data pipelines and cloud data warehousing. IIP equips business users with
intuitive tools and accelerator templates to build integration flows, reducing their reliance on
specialist integrators.

Cautions
■ Sales and growth: SnapLogic’s share of this market declined, as its revenue size and growth have
trailed behind more than half of the providers on this Magic Quadrant, in which its customer base
is the smallest. SnapLogic gained a small number of new customers by adding 168 enterprise
customers in the past year to reach a total of 1,100 organizations.

■ Customer support: Some large-enterprise customers have cited challenges with SnapLogic’s
responsiveness and the quality of its product support. They also have expressed a desire for
expanded access to well-established business solutions, including those from third-party system
integrators and members of the peer user community that use IIP.

■ Offering breadth: Customers have reported difficulties in managing the life cycle of integration
artifacts to maintain and evolve flow models, metadata, APIs and lineage relationships. This
challenge reflects SnapLogic’s need for improved governance in integration activities. This is also
identified in relation to API and ecosystem/B2B enablement, which are regarded as less mature in
IIP.

Software AG

Software AG is a Visionary in this Magic Quadrant. It offers webMethods.io, which includes B2B and
API capabilities. It also offers a headless version for OEMs that can be embedded within third-party
software components. webMethods.io also provides the integration capabilities for Software AG’s
Cumulocity IoT platform.

Based in Darmstadt, Germany, Software AG’s operations are geographically diversified, and it has
customers in all industries. Software AG also plans to develop automation and alerting driven by ML,
and to offer a unified data catalog.

Strengths
■ Market understanding: Software AG was late to join the EiPaaS market but has made quick
progress by capitalizing on its integration expertise. Its go-to-market strategy reflects a strong

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understanding of enterprise integration requirements. It supports diverse use cases with multiple
deployment models (including multicloud) and features catering to multiple integrator personas.

■ Platform versatility: webMethods.io supports a broad set of use cases, including application
integration, data integration, B2B integration, managed file transfer and API-based integration. Its
Cumulocity IoT platform enables users to rapidly create full IoT solutions. Its partnership with
Matillion will expand its data integration capabilities. Software AG plans to expand its capabilities
for automation use cases by leveraging AI-/ML-driven automation, augmented alerting and a
unified data catalog to support common assets.

■ Customer experience: Gartner inquiry sessions indicated positive customer feedback about
adopting Software AG and webMethods.io, especially in regard to its evaluation and contracting,
development and deployment, service and support, and functional capabilities.

Cautions
■ Marketing strategy: Many customers perceive Software AG as primarily a provider of on-premises
integration software, often citing its webMethods offering. Its cloud offering has limited visibility
compared to other EiPaaS offerings.

■ Product adoption: Customers have cited challenges in learning how to use some of the more
complex capabilities of the webMethods.io platform, especially those who are new to Software
AG’s evolving EiPaaS capabilities. Customers who have used the on-premises version of
webMethods typically find it easier to learn.

■ Geographic strategy: Software AG has about 5,200 customers, 65% of whom are based in North
America. It has some presence in the EMEA region (25% of customers), but there are opportunities
to increase its presence in other regions. Software AG plans to extend its geographic reach by
expanding its partner ecosystem.

Talend

Talend is a Challenger in this Magic Quadrant. Its portfolio comprises Cloud Data Integration, Cloud
Data Management, Cloud Data Loader, Cloud Real-Time Big Data Integration, Cloud Data Catalog and
Cloud API services (which have ESB and EDI support). These stand-alone tools are also offered
within Talend Data Fabric, the overarching platform for Talend’s cloud-based and on-premises
products. As a provider of data integration software, Talend has since gained an EiPaaS portfolio by
means of product enhancements and acquisitions.

Talend is headquartered in Redwood City, California, U.S. Its operations are geographically diversified,
and its customers represent companies in a variety of sectors such as media and services, financial
services, and manufacturing. Talend is developing partnerships to focus on small and midsize
businesses.

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Strengths
■ Sales execution: Talend has expanded customer awareness of its EiPaaS offering during the past
year. It has more than 4,300 paying customers, and about 25% of its revenue is derived from
resellers. Its sizable customer base reflects Talend’s commitment to this market.

■ Platform capabilities: Talend’s EiPaaS combines its established on-premises data integration
technology with capabilities to support cloud and on-premises integration, hybrid deployments,
reusable artifacts, and APIs to extend and embed it. Improved support for data quality and creating
shareable patterns across integration use cases provides synergy between Talend’s EiPaaS and
the broader offerings of its Data Fabric portfolio.

■ Marketing strategy: Talend extended its go-to-market channels through cloud partners to
strengthen its position for EiPaaS deal flows and joint customers, particularly through Microsoft,
Snowflake and Databricks.

Cautions
■ Geographic presence: Talend has a relatively limited market presence, especially outside of the
U.S. and Europe. Many prospective customers have yet to learn of Talend’s evolving coverage in
the iPaaS market.

■ Offering strategy: Customers have expressed a desire for improved capabilities to publish and
integrate APIs and ecosystems through public web/portal interfaces, especially when
organizations need to onboard their customers or support B2B solutions by offering integration
services using Talend’s EiPaaS.

■ Platform versatility: Talend’s EiPaaS is not commonly used for composite services and multistep
integration with complex choreography. Customers primarily use Talend for its strong data
integration capabilities.

TIBCO Software

TIBCO Software is a Leader in this Magic Quadrant. It offers TIBCO Cloud Integration, which provides
functionality for integrating applications, data, APIs, B2B and IoT, and automating processes.

Based in Palo Alto, California, U.S., its operations are geographically diversified. It has customers in
all major verticals including manufacturing, consulting and financial services, as well as healthcare,
technology, government and retail sectors. TIBCO is looking at expanding its cloud infrastructure in
regions of increasing customer demand such as Asia and South America.

Strengths
■ Sales execution: TIBCO Cloud Integration grew rapidly in 2020, both in terms of new customers
and revenue. With its growing portfolio of capabilities, TIBCO demonstrates a commitment to
extend beyond its tenure in middleware to a broader EiPaaS product set.
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■ Offering strategy: TIBCO’s EiPaaS offers broad capabilities for application, data, process, API and
IoT integration, available as tiered subscriptions. Its positioning of TIBCO Cloud Integration as a
starting point for tighter interoperation between components of TIBCO’s portfolio offers synergy
between its Responsive Application Mesh application architecture blueprint and EiPaaS for
connected intelligence.

■ Platform versatility: TIBCO Software expanded its established marketplace support of connectors,
industry accelerators and application service templates, by creating an embedded marketplace
making it more easily accessible for partners to publish reusable artifacts and contributions. It has
also enhanced its augmented data mapping and suggestions on source data connection to tap
into ML-powered data sharing scenarios.

Cautions
■ Market awareness: Many organizations that don’t have an established business relationship with
TIBCO are familiar with the company’s strong brand and reputation as an integration technology
provider, but are not always as familiar with its EiPaaS. TIBCO is investing in its OEM ecosystem,
seamlessly integrating core capabilities of partners’ cloud services on TIBCO Cloud, and leveraging
partnerships to increase market reach of EiPaaS.

■ Customer experience: Some customers have cited challenges in finding skilled resources from
TIBCO to help them deploy, maintain and expand implementations as they become more complex.
Buyers expressed that improvements are needed to address LOB and nontechnical users, as they
are increasingly seeking self-service capabilities.

■ Methods and guidance: As TIBCO’s portfolio expands, some customers have expressed a need to
increase their understanding of solutions and practices to help them learn the platform and
combine the capabilities of different EiPaaS components with broader offerings of TIBCO. Some
customers stated a preference for more frequent product updates.

Tray.io

Tray.io is a Challenger in this Magic Quadrant. Tray.io offers the Tray Platform and Tray Embedded,
both of which emphasize ease of use and flexibility. Tray.io’s EiPaaS provides a wide range of
prepackaged integrations and connectors and supports the ability to build custom integrations.

Headquartered in San Francisco, California, U.S., Tray.io’s operations are mainly focused in North
America. Recently, ISVs that use Tray Embedded to provide integration with their solutions to
customers have accounted for a significant percentage of Tray.io’s customers. In 2021, Tray.io plans
to open dedicated data centers in EMEA and APAC regions.

Strengths

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■ Sales execution: Tray.io expanded its customer base in 2020 to about 700 direct customers and
about 47,000 indirect customers. The company also tripled its revenue. This strong performance
reflects Tray.io’s commitment to building traction for its EiPaaS offerings, particularly through
indirect channels.

■ Sales strategy: Users seeking to automate their business applications and processes are attracted
to Tray.io’s ease of use and prepackaged integration recipes. Tray.io is effective in converting users
of its free trial offering into paying customers. Tray.io’s go-to-market approach primarily targets
ISVs as well as business users and processes in midsize and large enterprises. It is increasingly
focusing on integration specialists and developers.

■ Customer experience: Customers have provided positive feedback about Tray.io’s service and
support, including the quality of its technical support, its platform’s overall capability, its ease of
integration using standard APIs and tools, and its citizen integrator user experience.

Cautions
■ Market reach: While many of Tray.io’s staff are based in the U.K. — mostly in R&D and support
functions — most of its customers are based in North America. Its present coverage may also
deter organizations in other regions that prefer local sales and support.

■ Offering versatility: Tray.io does not provide packaged EDI B2B integration capabilities, AI, RPA or
multicloud support. In Gartner inquiries, few large organizations have considered Tray.io for
strategic and complex deployments with demanding ground-to-ground integration needs.

■ Strategic adoptions: Tray.io uses AWS’s global infrastructure, but its platform is deployed only in
North America, which may limit its appeal for global organizations. Also, most of Tray.io’s
customers are indirect (that is, they are end customers of ISVs), with LOBs and business users
representing a substantial percentage.

Workato

Workato is a Leader in this Magic Quadrant. It offers Workato Workspace, which targets
departmental or LOB-driven development, and Workato enterprise suite, which targets enterprise-level
or IT-driven adoption. Its line-of-business automation editions target business functions and
industries. It also offers embedded OEM capabilities for ISVs.

Based in Mountain View, California, U.S., Workato’s operations are mainly focused in North America
with some presence in APAC and Europe. It has customers in all industries. Workato is expanding its
investment in hyperautomation by investing in RPA and BPM technology in the short term. It is also
looking to improve its global presence with increased investment plans for EMEA, APAC and Japan.

Strengths

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■ Customer experience: Workato consistently received favorable satisfaction ratings across a variety
of criteria and sources, and its overall averages are at the top end of this year’s Magic Quadrant
entrants. Its customers praised Workato’s platform for its ease of use and breadth of features.
They also praised Workato for its customer service and support.

■ Marketing execution: While Workato still has some way to go to increase its market share from
leading competitors, interest in Workato from Gartner clients has significantly increased over the
past year, bringing its mind share in line with other major brands in the Leaders’ quadrant.

■ Sales execution: Workato continues to outperform the market in both revenue and customer
growth, which are accelerating year over year. This is expected to continue as it increases both
investment and presence in EMEA, APAC and Japan.

Cautions
■ Marketing strategy: Workato has made good progress with regard to brand awareness in the iPaaS
market, and has been relatively successful when competing against other iPaaS vendors, but it still
has some way to go for traction with customers looking to replace their legacy integration
software.

■ Product communication: While the majority of Workato customers are exceptionally happy with
the product, some have requested improved communication on updates and changes to the
platform, while others feel documentation could be improved.

■ Product breadth: The lack of EDI capabilities has been raised by some customers as an area in
which they would like to see improvement, affecting buyers looking for comprehensive B2B/EDI
capabilities who tend to look elsewhere.

Vendors Added and Dropped


We review and adjust our inclusion criteria for Magic Quadrants as markets change. As a result of
these adjustments, the mix of vendors in any Magic Quadrant may change over time. A vendor's
appearance in a Magic Quadrant one year and not the next does not necessarily indicate that we have
changed our opinion of that vendor. It may be a reflection of a change in the market and, therefore,
changed evaluation criteria, or of a change of focus by that vendor.

Added
■ Integromat

■ Huawei

Dropped
■ Adaptris
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■ Cloud Elements

Inclusion and Exclusion Criteria


To qualify for inclusion in this Magic Quadrant, vendors had to deliver a service with the following
characteristics:

■ It had to be a cloud service that is available via subscription to all qualified subscribers and is
accessible through internet technologies. This service had to include:

■ Some sharing of physical resources between logically isolated tenants (subscribers or


applications).

■ Some self-service provisioning and management by subscribers.

■ Bidirectional scaling without interruption of activities and with some automation.

■ Some instrumentation for resource use tracking.

■ It had to be a PaaS solution that:

■ Encapsulates the underlying virtual or physical machines, their procurement, management and
direct costs, and does not require tenants to be aware of them.

■ Delegates the patching, versioning and health of the platform stack to the provider.

■ It had to provide the following iPaaS capabilities:

■ Application integration features — that is, the ability for different applications to exchange
messages, call other business functions and automate business processes. This integration
generally needs to be at the transaction level. It must support use cases such as:

■ Data consistency/synchronization between applications.

■ Composition of new services from aggregations of existing applications or services (typically


published as APIs or events).

■ Delivery of a multistep process that touches many systems.

■ Data consistency and sharing features — that is, the ability for different data stores to
synchronize, to move data and to combine, deduplicate and aggregate data from different
stores. This integration generally involves a bulk/batch, federated/virtualized or change data
capture/replication mode of data delivery. It supports requirements for extracting, transforming,

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combining and provisioning data to support diverse use cases (such as analytics, data
management and integration).

■ B2B ecosystem integration features — that is, the ability to enable the exchanging of data (such
as payments, orders and supply chain information) electronically with business ecosystems and
partners by leveraging industry-standard data formats and protocols (such as EDIFACT, X12,
Swift, HL7, AS2/AS4). Executing effective B2B processes involves people from nontechnical
business roles, along with trading partner onboarding and trading community management.
Nontechnical users are provided access to, control over and visibility into the operation of these
B2B solutions.

■ API-based integration features — that is, the ability to create and integrate APIs from different
sources and to manage APIs in the context of these integrations.

■ Connectivity features to support on-premises and cloud-based endpoints, including:

■ Application connectors, such as for Salesforce, Workday, NetSuite, Oracle E-Business Suite
and Oracle Fusion Cloud ERP, SAP S/4HANA and SuccessFactors, ServiceNow, Microsoft
Dynamics 365 and Marketo.

■ Data source connectors, such as for file systems and SQL and NoSQL databases.

■ Technology connectors, such as for FTP, HTTP, Java Message Service (JMS) and Open
Database Connectivity (ODBC).

■ Features to support multiple data and message delivery styles, including:

■ API-based

■ Messaging/event-based

■ Batch

■ Data and message features such as validation, mapping and transformation, and routing and
orchestration.

■ End-user tools to develop, test, deploy, execute, administer, monitor and manage integration
flows, and to manage the life cycle of the relevant artifacts (transformation maps, routing rules,
orchestration flows, adapter configurations and others).

■ It also had to target enterprise-class projects by providing:

■ Support for high availability and disaster recovery.

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■ Secure access to endpoints and to the platform’s functionality.

■ Technical support to paying subscribers.

■ Lastly, it had to meet the follow requirements:

■ Marketing focused on integration. It had to be marketed as a versatile offering that can address
a broad range of use cases (including application integration, data integration, B2B ecosystem
and support for APIs) and industries.

■ Stand-alone offering. It had to be provided as a stand-alone service that subscribers use


directly. To use the platform, customers can subscribe to the EiPaaS capability only, not just to
some other cloud service — a SaaS application or another form of PaaS, such as application
platform as a service (aPaaS) — of which the iPaaS capabilities are an “embedded” subset.

■ Directly provided by the EiPaaS vendor. The customer must be able to purchase all these
capabilities directly from the vendor of the EiPaaS without engaging with third parties. The
vendor must provide at least first-line support for these capabilities.

To qualify for inclusion, vendors had to provide all the functionality listed above as a generally
available offering (as of 1 March 2021). The vendor must have had at least 900 paying customer
organizations, of which at least 200 were direct customers, by the same date. We took into account
the number of paying organizations, not individual users. We included both direct and indirect
customers — that is, organizations that bought a provider’s EiPaaS solution via a reseller or an OEM
partner.

Evaluation Criteria
Ability to Execute
We evaluate vendors’ Ability to Execute in the EiPaaS market using the following criteria:

Product or Service: The organization’s ability to provide a core offering that competes in and serves
the EiPaaS market. This includes current product and service capabilities, quality, feature sets and
skills. This can be offered natively or through OEM partnerships. This criterion covers diverse
capabilities such as enterprise-grade operations, platform versatility, integration specialist
productivity, ad hoc integrator productivity, citizen integrator support, event processing and support
for multicloud and hybrid deployments.

Overall Viability: An assessment of the organization’s financial health, and the financial and practical
success of the business unit. Our assessment includes the likelihood that the business unit will
continue offering the product and will continuously invest in improving its capabilities. Key business

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indicators include company and product revenue, direct and indirect customer base, profitability,
research-and-development investment ratios, and the balance of direct and indirect revenue.

Sales Execution/Pricing: The organization’s capabilities in all presales activities, including deal
management, pricing and negotiation, presales support and the effectiveness of its sales channel.
Key indicators include pricing transparency, pricing models that support various customer segments,
ease of access for evaluation and customer growth rates.

Market Responsiveness/Record: The organization’s ability to respond, change direction and achieve
competitive success in response to changing market dynamics. Key indicators include the
organization’s history of responsiveness, frequency of release schedule, adjustment of platform
features based on customer demand, understanding of market direction and the new features it
introduced during the past year.

Marketing Execution: The organization’s ability to deliver its messaging in a way that influences the
market, promotes its brand, increases awareness of its products and establishes a positive
perception of the product organization in the minds of buyers. Key indicators include the
organization’s publicity, promotional initiatives, thought leadership, word of mouth and sales
activities. Of specific interest is the organization’s ability to differentiate its buyer journeys and market
presence.

Customer Experience: The organization’s ability to enable customer success through its
relationships, products and services/programs. This criterion considers the ways in which customers
receive technical support or account support. It covers ancillary tools, customer support programs,
the availability of user groups and SLAs. Key indicators include customer satisfaction with products,
customer satisfaction with the vendor and customer willingness to recommend the offering to
others.

Operations: The organization’s ability to meet goals and commitments. Factors include quality of the
organizational structure, skills, experiences, programs, systems and other vehicles that enable the
organization to operate effectively and efficiently. Key indicators include staffing and organizational
design, disaster recovery, ability to make new releases available to customers with minimal
disruption, support structure and modalities, and partner networks.

Table 1: Ability to Execute Evaluation Criteria

Evaluation Criteria Weighting

Product or Service High

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Evaluation Criteria Weighting

Overall Viability Medium

Sales Execution/Pricing High

Market Responsiveness/Record Medium

Marketing Execution Medium

Customer Experience High

Operations Low

Source: Gartner (September 2021)

Completeness of Vision
We evaluate vendors’ Completeness of Vision in the EiPaaS market using the following criteria:

Market Understanding: This criterion assesses the ability to understand buyers’ wants and needs and
to translate that understanding into products and services. Vendors with the highest degree of vision
listen to and understand buyers’ wants and needs, and can shape or enhance customer demand
based on their vision. Key indicators include an understanding of the different integration personas
and their buyer journeys, the breadth of evolving integration use cases, the growing complexity of
deployment models, and their ability to recognize, set and capitalize on trends.

Marketing Strategy: This criterion looks for a clear, differentiated set of messages consistently
communicated throughout the organization and externalized through a website, advertising,
customer programs and positioning statements. Major traits include clear articulation of
differentiators and marketing initiatives that support a differentiated industry understanding.

Sales Strategy: This criterion looks for a sound strategy for direct and indirect sales, marketing,
service and communication affiliates to extend the scope and depth of the organization’s reach,

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skills, expertise, technologies, services and customer base. Key indicators are the vendor’s different
approaches for inside sales, marketplaces, direct sales, ISV/OEM sales and SI sales.

Offering (Product) Strategy: This criterion assesses the vendor’s approach to product development
and delivery — especially differentiation, functionality, methodology and feature sets — with a view to
fulfilling current and future requirements. Key indicators include features for enterprise-grade
operations, platform versatility, integration specialist productivity, ad hoc integrator productivity and
citizen integrator support. Other key features include the use of AI to facilitate development and
operations, packaged integration processes and templates, hybrid multicloud deployment support,
event processing, and metadata management.

Business Model: This criterion considers the design, logic and execution of the organization’s
business proposition for achieving continued success.

Vertical/Industry Strategy: This criterion evaluates the vendor’s strategy to direct resources, skills
and offerings to meet the specific needs of individual market segments. Key indicators include
platform ecosystems for application domains, such as ERP and CRM; for industry focus, such as
healthcare, manufacturing or financial services; for LOB processes, such as marketing, sales and
customer support; for cloud platforms, such as those of Alibaba, AWS and Google; and for
application vendor ecosystems, such as Oracle, Salesforce, SAP and ServiceNow.

Innovation: This criterion looks for direct, related, complementary and synergistic layouts of
resources, expertise or capital for investment, consolidation or defensive or preemptive purposes.
Key indicators include the use of AI to ease integration challenges, facilities to enable collaboration
between integration personas and support for emerging use cases (such as RPA, digital integration
hub and enterprise nervous system/event stream analytics, application composition). We also
considered other innovations that align with emerging market or technology trends, including
innovative pricing, go-to-market and sales models.

Geographic Strategy: This criterion evaluates the vendor’s strategy to direct resources, skills and
offerings to meet the specific needs of geographic areas outside its native area. Vendors may provide
their services directly or via partners, channels and subsidiaries. Key indicators include the vendor’s
direct commercial and support presence in regions and countries, the data center locations of the
iPaaS control plane (for development, governance and operations) and the runtime plane (for
execution of integration processes).

Table 2: Completeness of Vision Evaluation Criteria

Evaluation Criteria Weighting

Market Understanding High

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Evaluation Criteria Weighting

Marketing Strategy High

Sales Strategy Medium

Offering (Product) Strategy High

Business Model Low

Vertical/Industry Strategy Medium

Innovation High

Geographic Strategy Medium

Source: Gartner (September 2021)

Quadrant Descriptions

Leaders
Leaders have an insightful understanding of the EiPaaS market. They have a reliable record of strong
execution, an ability to influence the market’s direction and an ability to attract and keep a following.
A Leader does not focus solely on current execution; rather, it plans a robust product roadmap to
solidify its position and help buyers protect their investments.

Leaders continue to expand their capabilities and bring significant value to customers by addressing
new types of business problems. Their platforms are cohesive and functionally rich, enabling multiple
integration use cases. They often have a large global network of partners, and they regularly release
updates to rapidly address emerging customer needs.

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Leaders are well positioned to remain dominant as the EiPaaS market evolves. However, leadership
cannot be taken for granted. In the fast-moving EiPaaS market, one misstep could have catastrophic
consequences.

Challengers
Challengers offer mature or evolving offerings that have proven value in multiple integration
scenarios. Some are vendors with a large customer base. Challengers also demonstrate the financial
strength and commitment to compete aggressively in the EiPaaS market. Consequently, they offer a
competitive platform (at least for certain industries and use cases).

Challengers are well positioned to succeed in this market. However, they have a somewhat limited
perspective on how the market will evolve. They often have an incomplete vision of who the buyers
are (and will be), what the use cases are and how users’ expectations will evolve. As a result, their
offerings are more narrowly focused than those of Leaders. Challengers may lack a coordinated
strategy for the various products in their platform portfolio, or their platform roadmap may be less
robust than the Leaders. Alternatively, they may lag the Leaders in terms of marketing, sales
channels, geographic presence, industry-specific content and innovation.

Visionaries
Visionaries demonstrate a strong understanding of emerging technology and business trends by
aligning their EiPaaS capabilities with current demand. However, they may lack recognition or
credibility beyond their customer base or particular domain. They understand the specific
requirements of this market and are continuously innovating their technologies, delivery models and
go-to-market strategies. Visionaries see their EiPaaS offering as a key element of a broader
integration strategy. They may combine software licensing, software subscriptions and as-a-service
subscriptions with EiPaaS as one of many channels for integration.

Visionaries may have a background in traditional on-premises integration middleware. As such, they
have a good understanding of enterprise integration challenges. However, they may not have the
sales and marketing expertise required to sell beyond their traditional IT customer base.

Visionaries may enter the EiPaaS market by acquiring another vendor, by significantly reengineering
their on-premises products for cloud delivery or by developing a new technology.

Niche Players
Niche Players typically specialize in a vertical, geographical or functional area and only address a
segment of the broader EiPaaS market. They may be startups or small companies just starting to
succeed, or vendors focused on a specific subset of use cases.

However, their technology offerings and degree of customer satisfaction are often excellent. Niche
Players’ offerings can be suitable for organizations that require local presence and support, want a
close relationship with a provider, or seek a platform that addresses specific industry use cases or
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functional requirements. Niche Players that can fulfill these specific requirements may offset the
viability risks associated with smaller vendors.

Niche Players potentially compete with companies from the domain-specific iPaaS market that are
targeting this sector. They are also popular targets for acquisition because they offer specialized
EiPaaS solutions that focus on a relatively narrow function or market segment. Their products often
complement the broader integration strategies and platforms of larger vendors.

Context
Buyers can procure most EiPaaS offerings as suites of capabilities — either in a single package or as
a set of subsuites. Vendors in the EiPaaS market include pure-play providers, established software
vendors for application, data and B2B integration, and megavendors. These providers build and
package their EiPaaS offerings in different ways to target different use cases, personas and
industries.

Leading vendors continue to extend the functionality of their EiPaaS offerings, often by merging them
with their classic integration platform software technologies, acquired offerings, OEM technologies
or open-source software. These providers strive to further improve EiPaaS developer productivity,
reduce time to value, shorten the learning curve to ease deployments, expand their reach to potential
buyers and upsell to their established customers. Leading EiPaaS vendors are also focusing their
product development efforts on the use of AI, such as ML and natural language processing (NLP), to
assist development and operations. These innovations will enrich packaged integration process
portfolios, enable continuous integration/continuous delivery (CI/CD) and DevOps and extend the
range of supported use cases (including in hybrid and multicloud scenarios).

EiPaaS is one of the essential tools that organizations are using to deliver hyperautomation (see
Emerging Technologies and Trends Impact Radar: Hyperautomation), especially for business
technologists who are not in IT. In our 2021 Gartner Hyperautomation Survey, 1 11% of business
technologists indicated enterprise integration platforms are one of the three most-used tools to
support business-driven automation initiatives. Organizations are also adopting EiPaaS to accelerate
digital transformation, respond to drastic business changes, contain costs and increase flexibility. As
more organizations adopt cloud and SaaS applications to simplify their operations, vendor-managed
solutions are becoming more appealing to buyers. We expect that buyers will increasingly prefer
consumption- and service-based delivery of integration capabilities instead of classic software-based
integration approaches.

Market Overview
Organizations are continuing to adopt EiPaaS offerings as strategic alternatives to classic integration
platform software. Gartner estimates that the iPaaS market generated $3.47 billion in revenue during
2020 and grew by 38.7% compared to 2019. We expect that the iPaaS market will exceed $9 billion in
2
revenue by 2025.

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EiPaaS providers target software engineering leaders and other buyers who are looking for a strategic
platform that addresses multiple business-critical integration use cases. Organizations are
increasingly procuring EiPaaS solutions as a key component of their modernized integration strategy.

Despite its continued growth, the EiPaaS market is fragmented, fast-evolving and overcrowded —
making it difficult for buyers to evaluate and select vendors. We expect ongoing disruption in this
market as it continues to consolidate.

To navigate the EiPaaS market and to evaluate and select vendors, buyers must assess:

■ The platform’s intended goal (short-term, tactical use versus long-term strategic use).

■ The type and number of endpoints to connect: SaaS, packaged applications, internally developed
applications, mobile apps, social media, file systems, IoT, data sources, data warehouses and data
lakes.

■ The provider’s track record and familiarity with its industry.

■ The integration skills of all their user personas and how they align with the platform.

■ The organization’s ability to federate the EiPaaS with the established on-premises integration
technology and with API management platforms.

■ The vendor’s SLAs and quality-of-service requirements.

■ The organization’s security and regulatory compliance needs.

■ The geographic location of the vendor’s EiPaaS data centers and support centers.

■ The ability to deploy the EiPaaS platform in a hybrid mode, including multicloud options across the
EiPaaS public cloud and IaaS public clouds, and within the customer’s data centers.

■ The availability and cost of iPaaS skills from the provider and external service providers.

■ The long-term cost expectations and available budget.

Many software engineering leaders attempt to standardize on a single EiPaaS to minimize complexity
and contain costs. However, they may benefit from using multiple offerings to address different use
cases. Specialized EiPaaS offerings may be more suitable for LOBs and application teams working
on severely time- and budget-constrained projects or for meeting specific requirements, where a
purpose-built tool can drive higher productivity.

For this reason, we recommend that buyers develop a thorough understanding of their integration
requirements and priorities before starting the EiPaaS selection process. In addition to the above list

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of considerations, they should be pragmatic and tactical by evaluating domain-specific iPaaS


solutions that can deliver quick ROI.

Evidence
1
Gartner’s 2021 Hyperautomation Survey was conducted online during March 2021 among 558
business technologists from North America (n = 226), Europe (n = 146), Latin America (n = 78) and
Asia/Pacific (n = 108).

To be qualified to answer the survey, respondents would need to:

■ Have created, built or coded analytics or technology capabilities on their own or with input from
others in the past 12 months.

■ Have used at least one of the 21 tools that were considered to produce analytics or technology
capabilities for work. Twenty-one tools were considered under four categories: application
development tools, automation tools, integration tools, and data science and AI tools

Results of this study do not represent global findings or the market as a whole, but reflect sentiment
of the respondents and companies surveyed.

2
Forecast: Enterprise Infrastructure Software, Worldwide, 2019-2025, 2Q21 Update

Evaluation Criteria Definitions


Ability to Execute
Product/Service: Core goods and services offered by the vendor for the defined market. This
includes current product/service capabilities, quality, feature sets, skills and so on, whether offered
natively or through OEM agreements/partnerships as defined in the market definition and detailed in
the subcriteria.

Overall Viability: Viability includes an assessment of the overall organization's financial health, the
financial and practical success of the business unit, and the likelihood that the individual business
unit will continue investing in the product, will continue offering the product and will advance the
state of the art within the organization's portfolio of products.

Sales Execution/Pricing: The vendor's capabilities in all presales activities and the structure that
supports them. This includes deal management, pricing and negotiation, presales support, and the
overall effectiveness of the sales channel.

Market Responsiveness/Record: Ability to respond, change direction, be flexible and achieve


competitive success as opportunities develop, competitors act, customer needs evolve and market
dynamics change. This criterion also considers the vendor's history of responsiveness.

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Marketing Execution: The clarity, quality, creativity and efficacy of programs designed to deliver the
organization's message to influence the market, promote the brand and business, increase
awareness of the products, and establish a positive identification with the product/brand and
organization in the minds of buyers. This "mind share" can be driven by a combination of publicity,
promotional initiatives, thought leadership, word of mouth and sales activities.

Customer Experience: Relationships, products and services/programs that enable clients to be


successful with the products evaluated. Specifically, this includes the ways customers receive
technical support or account support. This can also include ancillary tools, customer support
programs (and the quality thereof), availability of user groups, service-level agreements and so on.

Operations: The ability of the organization to meet its goals and commitments. Factors include the
quality of the organizational structure, including skills, experiences, programs, systems and other
vehicles that enable the organization to operate effectively and efficiently on an ongoing basis.

Completeness of Vision
Market Understanding: Ability of the vendor to understand buyers' wants and needs and to translate
those into products and services. Vendors that show the highest degree of vision listen to and
understand buyers' wants and needs, and can shape or enhance those with their added vision.

Marketing Strategy: A clear, differentiated set of messages consistently communicated throughout


the organization and externalized through the website, advertising, customer programs and
positioning statements.

Sales Strategy: The strategy for selling products that uses the appropriate network of direct and
indirect sales, marketing, service, and communication affiliates that extend the scope and depth of
market reach, skills, expertise, technologies, services and the customer base.

Offering (Product) Strategy: The vendor's approach to product development and delivery that
emphasizes differentiation, functionality, methodology and feature sets as they map to current and
future requirements.

Business Model: The soundness and logic of the vendor's underlying business proposition.

Vertical/Industry Strategy: The vendor's strategy to direct resources, skills and offerings to meet the
specific needs of individual market segments, including vertical markets.

Innovation: Direct, related, complementary and synergistic layouts of resources, expertise or capital
for investment, consolidation, defensive or pre-emptive purposes.

Geographic Strategy: The vendor's strategy to direct resources, skills and offerings to meet the
specific needs of geographies outside the "home" or native geography, either directly or through
partners, channels and subsidiaries as appropriate for that geography and market.

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