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Magic Quadrant for Enterprise Integration Platform as a Service
Published: 18 April 2018
ID: G00328919
Analyst(s): Keith Guttridge, Massimo Pezzini, Eric Thoo, Bindi Bhullar, Betty J. Zakheim
Summary
The integration-platform-as-a-service market has bifurcated into: vendors with a broad go-to-
market strategy that tackle a wide range of enterprise integration scenarios; vendors that focus
on the more specific use cases. This Magic Quadrant focuses on the first category, enterprise
iPaaS.
Strategic Planning Assumption
By 2021, enterprise iPaaS will be the largest market segment in application integration
middleware, potentially consuming the traditional software delivery model along the way.
Market Definition/Description
This document was revised on 25 April 2018. The document you are viewing is the corrected
version. For more information, see the Corrections
(https://www.gartner.com/technology/about/policies/current_corrections.jsp) page on gartner.com.
An integration platform as a service (iPaaS) solution provides capabilities to enable subscribers
(aka "tenants") to implement data, application, API and process integration projects involving any
combination of cloud-resident and on-premises endpoints. This is achieved by developing,
deploying, executing, managing and monitoring integration processes/flows that connect
multiple endpoints so that they can work together.
iPaaS capabilities must include:
Communication protocol connectors such as FTP, HTTP, Advanced Message Queueing
Protocol (AMQP), Applicability Statement 1 (AS1)/2/3/4, and others
Application connectors/adapters for SaaS and on-premises packaged applications
Data formats such as XML, JavaScript Object Notation (JSON), Abstract Syntax Notation One
(ASN.1) and others
Data standards such as Electronic Data Interchange for Administration, Commerce and
Transportation (EDIFACT), Health Level Seven (HL7), SWIFT and others
Data mapping and transformation
Data quality
Routing and orchestration
Integration flow development and life cycle management tools
Integration flow operational monitoring and management
iPaaS capabilities can also include:
Full life cycle API management
B2B ecosystem management
Internet of Things (IoT) integration
An iPaaS solution is typically used for cloud service integration (CSI), application-to-application
integration (A2A), business-to-business integration (B2B) scenarios and, increasingly, for mobile
application integration (MAI) and IoT integration scenarios.
Gartner considers an iPaaS solution to be enterprise iPaaS (EiPaaS) if it:
Is designed to support enterprise-class integration projects; that is, projects requiring, high
availability/disaster recovery (HA/DR), security, service-level agreements (SLAs) and technical
support from the provider
Provides appropriate user experiences to the end user of the platform to allow the subscriber to
develop integration capabilities independent of the EiPaaS provider's professional services
Can be used for multiple integration scenarios including application integration and data
integration use cases
Is marketed for a broad range of use cases, verticals and industries
Is fully managed by the vendor for patching and upgrades; client-managed software
components are not considered to be part of an EiPaaS offering
Provides flexibility for the deployment of the runtime engine for a number of hybrid deployment
options
This market only includes companies that provide public EiPaaS offerings to be used by the
subscriber for the purpose of integrating applications, data sources and APIs. Vendors that sell
just iPaaS-enabling software, provide iPaaS capability only embedded in other xPaaS solutions,
such as application PaaS (aPaaS), or iPaaS capabilities only embedded within SaaS applications,
are not considered to be an EiPaaS vendor.
Magic Quadrant
Figure 1. Magic Quadrant for Enterprise Integration Platform as a Service
Source: Gartner (April 2018)
Vendor Strengths and Cautions
Adaptris
Established in 1998 in London, U.K. and acquired by RELX Group in 2015, independently operated
Adaptris provides an EiPaaS offering, Cirrus, for use in B2B, cloud-based and on-premises
application integration. The vendor's strong electronic data interchange (EDI) heritage has helped
it expand into the B2B-focused EiPaaS market for clients seeking software, services and/or
managed service offerings.
Adaptris also offers integration brokerage an outsourcing offering to support document
exchange between trading partners. While Cirrus is available as a stand-alone offering, the vendor
often sells it and the integration brokerage service together with a primary focus on IoT and big
data support as a solution set in the agricultural-food industry.
STRENGTHS
Targeted industry traction: With a focus on selling EiPaaS and integration brokerage together,
along with APIs for the IoT and strong support for B2B integration, Adaptris has an established
recognition for supporting agriculture-related solutions. This industry-oriented strategy is
expanding its reach into ecosystem markets, including the animal health, financial and travel
industries.
Capitalizing on data ecosystem: Providing EiPaaS capability alongside big data offerings to
link, cleanse, structure and deliver data using machine learning techniques, extends Adaptris'
platform versatility, in addition to its B2B integration strength, in order to broaden opportunities
for data and analytics scenarios.
Customer satisfaction keeps pace with growth: Adaptris' partnering posture toward companies
results in a positive customer experience, encompassing the presale process, the selling
process and the postsale relationship. Having an installed base of more than 5,400 EiPaaS
customers, Adaptris added about 970 customers in 2017, including global enterprises adopting
Cirrus for their cloud and on-premises integration needs.
CAUTIONS
Mind share: Adaptris has limited visibility and market share in the EiPaaS market, due to a lack
of visibility outside its customer base of the agri-food industry as well as a comparatively rare
presence in competitive situations.
Guidance and support for evolving solutions: As usage and requirements become increasingly
complex, reference customers desire guidance and support to broaden EiPaaS use cases and
implement evolving solutions and upgrade paths from Adaptris' offerings.
Evolution of new market offerings and global strategy: As the focus continues to shift toward
big data and analytics, and opportunities through its ownership by RELX, Adaptris' plans and its
platform which is undergoing transformation remain largely unknown to buyers in this
market.
Built.io
Built.io is based in San Francisco, California, U.S., and expanded into a PaaS solution business in
2013. It offers EiPaaS, mobile back-end cloud services and content management cloud services
(cmsPaaS), which are three distinct offerings and can connect with each other. The vendor's
EiPaaS offering, Built.io Flow, focuses on quick and easy enablement of integration flows. It
connects mobile apps, cloud services (such as Salesforce, G Suite, Amazon Web Services [AWS]
and others), social networking (such as Slack) and devices/things (such as connected cars) via
prebuilt integration templates and model-driven design.
Built.io Flow has three editions: Express for business users, Enterprise for IT teams, and Flow
Embed for OEM partnerships. Built.io Flow is available in the cloud as PaaS. It also supports a
hybrid deployment model with an Enterprise Gateway to connect applications on-premises (such
as Oracle and SAP), as well as on serverless and container architectures through the Built.io
serverless deployment (for AWS Lambda and Kubernetes, for example).
STRENGTHS
Client growth: Built.io added more than 2,500 paying customers and more than 7,000 free-trial
users during 2017, and its year-over-year revenue growth was well above the market average,
albeit from a small revenue base. The vast majority of this customer growth was driven through
smaller deals; the revenue growth through several significant enterprise deployments. Built.io is
investing in its channel and partner network to support the new Built.io Flow Embed offering.
Customer experience and satisfaction: Reference customers scored Built.io highly in overall
customer satisfaction and experience, value for money, evaluation and contracting, delivery and
execution, and services. This performance, coupled with a broad multipersona and high-
productivity approach, helped Built.io drive the second highest number of projects per
customer in this Magic Quadrant.
IoT and mobile focus: Built.io supports hybrid deployments and a variety of use cases,
including for IoT and mobile, along with SaaS integration. By connecting Built.io Flow and its
mobile back-end cloud service offering, Built.io Backend, customers can create and integrate
microservices used in mobile applications and IoT deployments.
CAUTIONS
Limited versatility: Although Built.io added several API management capabilities in 2017, its
features here are relatively new, and less comprehensive and mature than those of some
competing EiPaaS offerings. It provides minimal or missing support for EDI-based B2B
integration, ground-to-ground integration (due to the lack of an on-premises EiPaaS deployment
option), industry-specific standards such as Health Insurance Portability and Accountability
Act (HIPAA), Health Level-7 (HL7), Association for Cooperative Operations Research and
Development (ACORD) and others and big data/analytics use cases. Large organizations
seeking a more versatile and functionally rich platform may find limited appeal in Built.io Flow.
Geographic strategy: Built.io is less visible than some EiPaaS competitors, particularly outside
North America where it has limited commercial and support operations. This may limit its
ability to serve customers operating internationally. It has modest plans to invest in marketing
and its partner network, in order to increase market awareness and traction in select countries
across EMEA and Asia/Pacific during 2018.
Ecosystem community features and policy management: Built.io's roadmap includes plans and
investment to add a B2B partner portal for partner self-service integration, and to offer policy
management and enforcement capabilities. However, Built.io Flow currently lacks these
features.
Celigo
Celigo entered the EiPaaS platform market in August 2008, when it released a cloudstream to
integrate Salesforce to NetSuite. In March 2016, Celigo launched Integrator.io, its second-
generation EiPaaS offering, which replaced its original Celigo Integrator offering. Built on top of
its EiPaaS offering, Celigo provides a wide range of prepackaged integrations (for example,
Celigo SmartConnectors) and packaged composite applications (such as Celigo Productivity
Apps), which are sold as independent SaaS offerings.
STRENGTHS
Small or midsize business (SMB)-focused strategy: Celigo is laser-focused on supporting the
fast-growing SMB market in which the company aspires to a dominant role, especially in the
NetSuite and Salesforce ecosystems. These ambitions are supported by simple user
experiences targeting "ad hoc" and "citizen" integrators.
Diversified go-to-market strategy: In addition to a classic IT-centric EiPaaS proposition,
Celigo's go-to-market strategy strongly targets business buyers. The rich and advanced set of
SmartConnectors is designed to appeal to business users. The Celigo Productivity Apps, sold
by a dedicated sales organization, are totally focused on business buyers.
Adoption: Celigo was able to add approximately 300 new clients during the past 12 months,
growing its total client base by 30% to more than 1,300. Given the limited market presence, as
reflected in the Gartner EiPaaS client survey, this was a respectable growth and almost on a par
with the market average.
CAUTIONS
Versatility and functional coverage: Integrator.io lacks API management capabilities and
provides minimal support for EDI-based B2B, mobile app, IoT and big data/analytics
integration. Moreover, the offering received below-average scores from its reference clients for
functional completeness. These limitations will be only partially addressed by the roadmap for
the next 12 months, which implies that Celigo might not attract organizations looking for a
highly versatile and functionally rich EiPaaS offering.
Geographic presence: Celigo currently has data centers and offices in the U.S. only. During
2018, there are plans to open offices in Europe and Asia/Pacific to better serve its small (12%)
but growing international market.
Customer satisfaction: Celigo was evaluated by its reference customers as being among the
lowest with regard to overall experience with the vendor and value for money. However, no
score was below a 4, out of 5, which highlights the very competitive nature of the enterprise
EiPaaS market.
Developer experience: Celigo's reference clients evaluated it as among the lowest with regard
to all three integration developer experiences specialist, ad hoc and citizen despite the
company's focus on ease of use.
Cloud Elements
Founded in 2012 and based in Denver, Colorado, U.S., Cloud Elements provides an API-centric
integration platform that focuses on solving the problem of organizing existing APIs for easy
consumption.
Cloud Elements' approach is to provide normalized access to applications and data sources.
Cloud Elements enables a canonical data model approach and sets of uniform (canonical)
RESTful APIs. Categories of services (that is, CRM or cloud storage) or collections of normalized
resources (such as Invoice, Product or Employee) are made available as API Hubs. Each API Hub
is mapped into multiple corresponding SaaS applications (for example, Salesforce and
SugarCRM for the CRM Hub) via customizable prepackaged connectors (or "Elements"). The
Cloud Elements platform is used to create and extend Elements, as well as to create integration
flows that can also be exposed as APIs. A separate interface, Elements Connect, provides a
simplified means of selecting and deploying the prepackaged integration flows.
STRENGTHS
Innovation: Cloud Elements' approach to integration through the creation of normalized APIs,
very rich connectors and unified data models is differentiating. Among EiPaaS vendors, it has a
strong API management capability. The Cloud Elements model is particularly well-suited to
organizations that have either many SaaS products in the same domain (that is, HCM or
finance) or a fluid environment where they desire to easily swap in/out similar products. It is
also well-suited to organizations that are leaning toward rationalizing and governing their data
models.
Indirect channel/sales strategy: Cloud Elements' go-to-market model has a focus on
OEMs/independent software vendors (ISVs). Cloud Elements services are provided as white-
labeled, easy-to-deploy integration services to the customers of SaaS application providers.
The end-user organizations that end up leveraging Cloud Elements as a result of this model,
may find it appealing to extend its usage to additional use cases.
Breadth of connector types: Cloud Elements has a catalog of 150 prebuilt "Elements" across
17 API Hubs (categories of products). Customers and system integrators (SIs) can develop and
publish additional custom Elements and Hubs.
CAUTIONS
Platform versatility: Cloud Elements' approach includes EiPaaS, API management and iSaaS.
However, the EiPaaS solution lacks some capabilities of a fully featured tool, such as EDI-style
B2B integration, managed file transfer (MFT) and workflows (involving tasks performed by
humans). Reference customers for Cloud Elements indicated that their purchase was
associated with an API initiative rather than a cloud ERP or CRM project, as is more typical of
EiPaaS customers.
Complex value proposition for enterprise IT: The Cloud Elements focus on attracting ISVs has
resulted in complex messaging that is well-tuned to developers, but almost inaccessible to
enterprise IT leaders.
Market presence: While Cloud Elements has data centers in North America and EMEA, its
current customers are 90% in North America and 10% in EMEA. Future plans include opening
an EMEA headquarters early in 2018. Until then, Cloud Elements will have limited appeal for
EMEA-centric organizations.
Customer experience: There was an insufficient number of responses from Cloud Elements'
reference customers to draw any meaningful conclusions from the survey results. However,
they did provide comments about issues around the quality of documentation, as well as a
concern around the ability of the platform to scale. Prospective clients should question Cloud
Elements about these issues.
DBSync
Founded in 2009, and based in Brentwood, Tennessee, U.S., DBSync provides capabilities for
integrating data among databases, applications and cloud sources, via on-premises and cloud
deployment models.
With a focus on the integration needs of SMBs to support CRM and accounting operations,
DBSync's EiPaaS offering, Cloud Workflow, provides replication and integration capabilities for
provisioning, monitoring and managing data across heterogeneous applications, and data and
cloud environments. Environments include Salesforce, Microsoft Dynamics, Sage Intacct,
SkuVault, NetSuite and QuickBooks. DBSync pursues a direct-sale strategy and is increasing its
focus on providing integration capability via a partner network. ISVs and solution providers can
extend their platforms to offer Cloud Workflow functionality on their environment for their
customer base.
STRENGTHS
Strength and stability of functionality: DBSync offers strong data and application integration
functionality applied to heterogeneous data and application types, with a historical strength in
addressing SMBs. DBSync's experience in integrating data, process of accounting, and e-
commerce-related cloud applications are regarded as key points of value in its adoption.
Expanding market reach: DBSync has added channel focus by enhancing its partner portal,
developer community, ISV and co-sell arrangements, and continues to expand its market reach.
DBSync has a focus on portability and service enablement of Cloud Workflow integration
artifacts. It aims to simplify integration through its ApiCode functionality (for images rendered
in Docker, AWS and Microsoft Azure, for example) and service wrapper based on the Swagger
API framework.
Customer focus: DBSync's partnering posture toward companies understanding their
business needs and appropriately delivering solutions results in strong customer
relationships and a positive perception of value relative to cost.
CAUTIONS
Coverage and market resonance: Organizations seeking providers for an enterprisewide range
of EiPaaS scenarios find DBSync's position in the market to be relatively narrow. Buyers
attracted to DBSync's solution are primarily SMB customers addressing targeted or
departmental-level integration projects.
Technical help and professional services: Implementations reflect concerns with the ease of
navigating technical help for troubleshooting and best practices. Customers desire
improvements in self-help support and availability of professional services to guide usage,
administration and additional capabilities.
Hybrid deployments: Although users of DBSync increasingly have a mix of cloud and on-
premises runtime deployment models, reference customers cite the need for easier
implementation to enable hybrid integration platform (HIP) scenarios.
Dell Boomi
Dell Boomi, based in Chesterbrook, Pennsylvania, U.S., is a business unit within Dell
Technologies. It provides EiPaaS capabilities for application and data integration as part of its
AtomSphere unified PaaS platform. AtomSphere also provides API design and management,
master data hub, B2B management, workflow automation and app development.
AtomSphere is available in several editions, differentiated by target market, use case, breadth of
functionality and number of connected endpoints. It also targets the B2B integration market via a
dedicated AtomSphere edition and an associated managed service. Functional add-ons and
further connections are also available. All editions include standard support with premium
options.
STRENGTHS
Sales execution: Adding more than 1,500 clients in 2017, Dell Boomi's total installed base now
amounts to more than 7,000 global, large or midsize organizations worldwide. At the same
time, revenue grew more than 50%, to about $150 million, positioning the company among the
largest iPaaS providers. This was achieved while keeping overall customer satisfaction above
average and improving its value-for-money scores from reference customers.
Product functionality and versatility: AtomSphere is a well-proven, powerful and versatile
platform that its reference customers use to support complex cloud-to-cloud-to-on-premises,
mobile app, B2B and IoT integration requirements, as well as API publishing. The MDM, API
management, EDI managed service and managed multicloud runtime deployment offerings (on
AWS and Microsoft Azure), along with the new workflow automation tool, help diversify Dell
Boomi's proposition and increase its cross-selling opportunities.
Vertical/industry strategy: Dell Boomi is closely aligned with major horizontal technology
partners such as Salesforce, Workday and NetSuite, and has alliances with global SIs such as
Accenture and Deloitte. Unlike many EiPaaS providers, the company also targets multiple
industry verticals via specific sales and marketing plans and solution templates. It also
addresses the healthcare sector, in partnership with Dell Technologies.
Offering strategy: Dell Boomi has restructured its development organization and plans to
increase R&D investment by 50% to support an ambitious 12-month roadmap. This includes
improved API management, IoT, event processing, workflow automation and widespread use of
artificial intelligence (AI)/machine learning (ML) to improve the multipersona user experience,
optimize operations and deliver deeper technical and business insights.
CAUTIONS
Ease of development and citizen integrator support: Reference customers scored AtomSphere
as below average in user experience. Historically, ease of development has been a strength for
Dell Boomi. These ratings indicate that it failed to keep pace with other players' innovations in
this area.
Pricing: Although reference customers gave Dell Boomi above-average scores for
professionalism in the sale process, they also score the company's flexibility and adaptability in
final negotiations as below average.
Multicloud and citizen integrator support: Although Dell Boomi plans to make AtomSphere
available on AWS, some leading competitors have more aggressive plans for multicloud
support. Despite the planned investment in AI/ML, Dell Boomi's vision for citizen integrator
support is behind that of its leading competitors.
Geographic strategy: Despite sales and marketing investments in EMEA and Asia/Pacific,
about 75% of AtomSphere clients are in North America, affecting the allocation of its sales and
support personnel. Prospects planning international/global EiPaaS deployments may find Dell
Boomi less appealing than competitors with a broader geographic presence.
IBM
Founded in 1911, and based in Armonk, New York, U.S., IBM has an EiPaaS offering called
Application Integration Suite on Cloud. The suite includes three components, which can also be
purchased individually. These are: IBM App Connect Professional, focused on ad hoc and citizen
integrators; IBM Integration Bus on Cloud, focused on integration specialists; and IBM API
Connect, which provides capabilities to manage and secure integration flows when exposed as
APIs.
STRENGTHS
Vision and product evolution: IBM's HIP-aligned strategy for its EiPaaS solution, as part of a
broader IBM Cloud Integration Platform vision, continued to make good progress through 2017.
A balanced focus for addressing a broad set of personas and use cases, ever-increasing
platform unification and extensions, and a comprehensive roadmap that includes leverage of
cognitive features through Watson, is building on IBM's strength and reputation in integration.
Packaging model: IBM's packaging strategy is flexible, aggressive and modeled on demand
trends. By adopting a hybrid-oriented approach to packaging including free trial option and
new "Flex Bundle" customers can choose between any pricing model (capital expenditure or
operating expenditure) and deployment style (on-premises, cloud, hybrid) across a broad range
of use cases. As customers can also purchase specific capabilities and functionality at
different levels, this high degree of flexibility enables both existing clients and newcomers to
start small and expand use cases over time.
Global staff/skills presence: IBM benefits from having an established global presence in
hardware and software, its services network and a large partner network. With more than 3,000
partners, it has the network and reach to influence both the size and shape of the global EiPaaS
market.
CAUTIONS
Customer experience and satisfaction: Reference customers scored IBM's EiPaaS offering as
below average in customer satisfaction and experience. This performance was consistent
across all vendor and product-support-related categories for IBM, including value for money,
delivery and execution, and the sales and negotiation process. Despite articulating a strong
vision that is underpinned by compelling technology, IBM is working to resolve challenges in
delivering a high-quality engagement experience from its field and delivery organizations. This
may pose commercial and implementation challenges for clients in the interim period.
Market traction: Although IBM's EiPaaS revenue grew above the market average in 2017,
Gartner estimates its direct-paying customer base grew less than the market average. IBM's
combined direct and indirect customer count is, therefore, still relatively small when compared
with the market leaders. This suggests that IBM has yet to fully leverage its large installed base
and channel network.
Mind share and go-to-market strategy: Market awareness of IBM's EiPaaS solution remains
low. IBM is still thought of as aligned predominantly with addressing the enterprise IT arena,
rather than SMBs, lines of business and multipersona-oriented opportunities. This is partly due
to IBM being generally viewed as a software company rather than a cloud company. IBM plans
to broaden awareness of its EiPaaS efforts through a more unified go-to-market approach,
including leveraging its significant internal and partner networks.
Informatica
Founded in 1993 and based in Redwood City, California, U.S., Informatica is a large, privately
owned company and one of the most successful players in the data management market. The
company's EiPaaS solution is the Informatica Intelligent Cloud Services (IICS), part of the
Informatica Intelligent Data Platform proposition. This also includes application integration, APIs,
B2B, integration hub, data integration, data quality, data catalog, big data management, data
security and MDM services, which are increasingly enabled by Informatica's CLAIRE metadata-
driven AI and ML engine.
IICS is available with a base package along with use-case-based packaging and pricing that cover
a range of integration scenarios.
STRENGTHS
Customer experience: In 2017, Informatica added 1,500 new clients, reaching an installed base
of more than 8,500, and grew revenue by more than 50%, to approximately $190 to $200
million, retaining its position as the largest iPaaS provider. Reference customers evaluated
Informatica as one of the best vendors in this Magic Quadrant for overall customer experience,
and above average in services, product value for money, and quality and flexibility of the sales
process.
Product functionality and developer experience: IICS provides a wealth of data, application,
process, API-based and B2B integration, as well as data quality and security functionality
including Service Organization Control 2 (SOC 2), SOC 3 and HIPAA support. Reference
customers scored the platform as above average for core integration features, integration
specialist and ad hoc integrator experience, and reliability.
Innovation: Informatica was one of the first EiPaaS providers to leverage, via CLAIRE, AI and
ML technologies to improve the user experience and optimize operations. In 2017, the
company re-engineered the platform based on an advanced microservices and metadata-
driven architecture, which enables a unified user experience and improved quality of service for
clients.
Sales and geographic strategies: Informatica plans to double its cloud sales specialist
organization and to strengthen its midmarket-focused inside-sales team. The planned
availability of the platform on AWS, Microsoft Azure and other second-tier clouds will make it
increasingly appealing for organizations engaging in multinational and global initiatives.
CAUTIONS
API management: Despite the planned introduction of an API developer portal and
improvements in the API gateway functionality, the IICS API management capabilities are still
behind those of several competitors in maturity and functionality. Reference customers scored
Informatica's policy management capability as being below average.
Client perception: Although the company is one of the top three EiPaaS providers in terms of
visibility in the market, prospects perceive IICS as being primarily focused on data integration
and therefore rarely consider it for API-centric use cases.
Offer complexity: IICS has reached a level of sophistication that may be overwhelming.
Although Informatica is rolling out modular use-case-based packages, should its sales and
marketing organizations fail to articulate such a complex value proposition in simple terms, the
less technically savvy prospects will struggle to understand and appreciate the offering.
Citizen integrators: Although Informatica recognizes the citizen integrator role and plans for
chatbot support, the IICS roadmap does not address the use of natural-language recognition to
empower this audience, which other providers have or plan to have.
Jitterbit
Established in 2003, Jitterbit is a private company based in Alameda, California, U.S. Jitterbit
originated as a provider of integration software focused on the SMB market. In 2010, Jitterbit
began providing Jitterbit Enterprise Cloud Edition, an EiPaaS rendition of its on-premises product.
Jitterbit's Harmony platform, which was released in 2014 as an evolution of Enterprise Cloud
Edition, provides support for the integration of diverse cloud, interenterprise and on-premises
environments, as well as API autocreation and API management. Jitterbit also provides solutions
for ISVs and SaaS providers, including prebuilt templates for various common cloud and on-
premises integrations in order to deliver embedded integration capabilities. Jitterbit offers a free
30-day trial of its EiPaaS solution.
STRENGTHS
Market responsiveness: With monthly major releases and weekly minor releases, Jitterbit is in
a position to respond rapidly to market demand, as shown by the addition of native API
management capabilities and Salesforce Platform Events during 2017.
Platform versatility: As well as the standard application and data integration use cases,
Jitterbit clients reported using the platform for API management, B2B/EDI and IoT use cases
highlighting the versatility of the platform.
Customer experience: Jitterbit received one of the highest scores for customer satisfaction
from its reference customers, at both a product and a vendor level, and received an
unconditional recommendation from its reference customers. This was achieved while growing
revenue above the market average and adding more than 400 new client organizations and
10,000 new freemium users.
Broad platform vision: The Jitterbit Harmony platform is becoming more appealing for
strategic adoption. This is due to a combination of good provision for the different integration
personas, including the digital integrator, plus improved collaboration tooling and a strong
roadmap with more AI and serverless runtime options.
CAUTIONS
Geographic presence: The 12% of Jitterbit's client base in Asia/Pacific has to use global data
centers in Europe and North America to create and manage its integrations. Jitterbit does
provide a regional data center in Australia for the runtime component, as well as clients being
able to download and deploy the runtime themselves. There are plans to open a dedicated
Asia/Pacific data center in 2018, including the management component.
Market positioning: Jitterbit's go-to-market strategy has historically targeted the SMB segment,
with the result that some larger enterprises do not consider Jitterbit in their initial selection
process. This positioning from Jitterbit changed during 2017, but it might take some time for
market perceptions to change.
Rapidly evolving platform: During 2017, many new features were added to the Harmony
platform, including major components such as API management, Salesforce Platform Events
and new collaboration features between the various developer personas. Some clients have
reported they wish to see improved documentation and guidance on these new features, or that
some aspects of the platform are less mature than those offered by the competition.
Microsoft
Founded in 1975 and based in Redmond, Washington, U.S., Microsoft made Azure Logic Apps
generally available in July 2016, as a stand-alone EiPaaS offering. From 2018, Azure Integration
Services will be the collective name for a number of integration-related components, including
Logic Apps, API Management, Service Bus and Event Grid. Data Factory rounds off the EiPaaS
offerings for extraction, transformation and loading (ETL)-type workloads. Microsoft Flow, built
on top of Logic Apps, enables citizen integrators.
STRENGTHS
Global cloud: Deployed in more than 30 of Microsoft's cloud regions globally, with another six
planned for 2018, Azure Integration Services are widely available in most regions. The addition
of Azure Stack, Microsoft's Azure on-premises extension, increases runtime deployment
options and support for hybrid scenarios, and removes the historic dependency on BizTalk.
Strong growth: Gartner estimates that Microsoft more than tripled its client base during 2017,
making it one of only a handful of vendors with more than 5,000 client organizations.
Microsoft's was also the fourth most considered platform among those offered by the vendors
in this Magic Quadrant, reflecting its increasing market presence.
Platform versatility: During 2017, Microsoft added numerous features to its EiPaaS offering to
improve its versatility, which now covers application integration, data integration, API
management, B2B/EDI and IoT scenarios. This versatility of use was also confirmed by
Microsoft's reference customers.
CAUTIONS
Platform maturity: Microsoft has responded to feedback around a lack of functional depth in
the offering by having an aggressive release schedule during 2017. While this has been
recognized as a strength, many of these capabilities are still relatively unproven in the market.
This is reflected in its reference customers' evaluations, with many of the features receiving
below-average scores, including protocol mapping, data formats, data standards and data
mapping and transformation.
Microsoft-developer-focused ecosystem: With such a large customer base to leverage and a
strong focus on the enablement of developers, Microsoft often fails to market to the buyers of
SaaS, including Microsoft SaaS. This results in a message that does little to appeal to
organizations that do not have Microsoft development skills, though Flow goes some way to
addressing this.
Customer expectation: While reference customers' satisfaction was generally good, the EiPaaS
market is an incredibly competitive space with the majority of vendors being scored above 4.5
on a 1 to 5 scale in both product and vendor satisfaction. Microsoft scored just below average
on overall satisfaction and just above average on value for money, and has some work to do in
this area if it wants to catch up with the leading competition.
Moskitos
Incorporated in 2012, and based in Levallois-Perret, France, Moskitos is a cloud service provider
entirely focused on EiPaaS. The company, funded by private investors and French government
grants, operates primarily in France, Belgium, Switzerland and the U.K., and has plans for an office
in Asia/Pacific in 2H18.
Moskitos' EiPaaS solution, Crosscut, was launched in 2013 and provides a range of data,
application and IoT integration functionality and API management. Crosscut is implemented on
Microsoft Azure, but the company is working on a containerized version of the platform to
support multicloud scenarios.
STRENGTHS
Customer satisfaction: Reference customers scored Moskitos as second-best for value for
money, and well above average in overall customer satisfaction, core platform functionality,
user experience and professional services.
Sales execution: Despite its small size, in 2017 Moskitos doubled its installed base to almost
5,000 paid direct and, mostly, indirect clients. Such growth was achieved by increasing visibility
in its countries of operation (especially France) and by orchestrating partnerships with local
SaaS players: SIs, such as Accenture, DXC Technology and Akatoa; and technology partners
such as Axway, CA Technologies and OpenDataSoft.
Offering versatility: Through a combination of internal developments and technology
partnerships, Moskitos has developed Crosscut into a versatile EiPaaS solution. Clients are
using Crosscut for integration of cloud and on-premises applications, data, B2B and mobile
apps as well as for API management. Moreover, Moskitos has invested significantly to improve
the Crosscut user experience, community support and operations. The company also plans to
add MFT and ETL capabilities, thus increasing Crosscut's appeal for organizations looking for a
versatile and functionally rich EiPaaS solution.
CAUTIONS
Operations: Moskitos is a small, 30-employee company mostly focused on France and
neighboring countries. It has a network of about 20 SI partners and outsources its 24/7 support
operations to a third party (Codit). The company also plans to support Crosscut on multiple
cloud infrastructures (such as AWS, Microsoft Azure and Alibaba Cloud). However, it may still
have a limited appeal for organizations that require local commercial presence and support in
their country.
Viability: Despite significant high-double-digit growth, Moskitos' large customer base generates
quite modest revenue because the majority of sales are indirect, SMB clients (pharmacies and
car dealers). This level of revenue is unlikely to generate the resources needed to sustain the
company's ambitions in the long term, which would require substantially increased external
investment.
Sales and marketing strategy: Moskitos' marketing has progressed during the past 12 months,
and the company plans new initiatives to target industry verticals and use cases through
partners. The company plans to raise funding to expand in Asia/Pacific (Singapore) and also to
set up a sales team to target OEM customers. Nonetheless, due to the limited financial
resources available, Moskitos' industry recognition and market share are likely to remain
significantly lower than those of most of its competitors.
MuleSoft
Founded in 2006, and based in San Francisco, California, U.S., MuleSoft started as a provider of
enterprise service bus (ESB) software and was one of the early vendors in the EiPaaS market.
In 2013, MuleSoft released Anypoint Platform, a combination of EiPaaS, API management and
ESB technology. Since then, MuleSoft has added Anypoint Exchange, a collaboration and sharing
tool; Anypoint MQ, a cloud messaging capability; and Anypoint Design Center's flow designer, a
cloud-based integration developer experience targeting ad hoc integrators.
On 20 March 2018, Salesforce entered into a definitive agreement to acquire MuleSoft. This
acquisition was not closed at the time of our research for this Magic Quadrant, or its publication,
so the evaluation of MuleSoft is based solely on its capabilities as a stand-alone company.
STRENGTHS
Brand awareness: MuleSoft enjoys broad, global market awareness based on its open-core
ESB, strong API management capabilities and EiPaaS offering. For three years in a row, it was
the vendor most often considered by the reference customers for Gartner's EiPaaS survey, and
is one of the top three vendors discussed on integration inquiries with Gartner during 2017.
Strong revenue growth: Gartner estimates that MuleSoft's revenue grew above the market
average in 2017, which makes it one of a handful of vendors generating around $100 million or
more from EiPaaS revenue. With strong and increasing renewals and a focus on larger strategic
clients, MuleSoft has established itself as a player in the broader integration market.
Platform availability: MuleSoft's Anypoint Platform is deployed across 12 data centers around
the world and leverages the latest in platform availability at both a local and regional level.
MuleSoft plans additional capabilities to ease multicloud deployments during 2018. The
Anypoint Platform is one of the most highly available EiPaaS offerings around.
Platform versatility: MuleSoft's Anypoint Platform has features targeting application
integration, data integration, API management, B2B/EDI and IoT initiatives, as well as a strong
product roadmap that includes AI/ML for improved integration delivery.
CAUTIONS
Customer experience: MuleSoft's reference customer satisfaction ratings declined from last
year in both vendor and product satisfaction. Gartner feels that this can be partly explained by
the company's go-to-market strategy of focusing on larger, more strategic opportunities, which,
by their nature, will be more complex to implement.
Client base growth: MuleSoft reported adding just over 100 enterprise organizations during
2017, which is well below the market average. However, the number of users of the platform
grew above the market average, reflecting an increase in use by current clients as well as by
new clients with a large user base.
Strong focus on integration specialists: Given the history of MuleSoft in application integration,
it is common knowledge that clients get the most out of MuleSoft if they have good technical
skills. While MuleSoft has started to address the ad hoc integration persona, with the release of
Flow designer, it still has some work to do regarding ease of use for nontechnical users. This is
reflected in its low customer reference scores for ad hoc and citizen integrator user
experiences.
Marketing strategy: MuleSoft's Anypoint Platform is marketed as a unified platform for API-led
connectivity. It is available in both software and as-a-service delivery models, and a hybrid mix
of the two. While this is appropriate for some large-scale strategic deployments, some Gartner
clients have reported that they found this confusing when looking for an EiPaaS solution.
Oracle
Founded in 1977 and based in Redwood Shores, California, U.S., Oracle offers a spectrum of
EiPaaS technologies that have co-evolved alongside the underlying infrastructure that Oracle
provides through IaaS, PaaS, SaaS and application and data integration technologies. Oracle has
leveraged this set of capabilities to provide the Oracle Integration Cloud.
The Oracle Integration Cloud Service (ICS) primarily addresses the high-productivity EiPaaS
requirements of ad hoc integrators. Oracle's service-oriented architecture (SOA) Cloud Service, a
PaaS rendition of part of the on-premises Oracle SOA Suite, is a high-control platform targeting
specialist integrators. Oracle has various other xPaaS offerings that can be combined with its
EiPaaS. These xPaaS offerings include: Oracle Process Cloud Service, for improved orchestration
and business activity monitoring; Oracle Data Integration Platform Cloud, to support data
manipulation and sharing. Also, Oracle Apiary and API Platform Cloud Service, for API
management; Oracle Managed File Transfer Cloud Service, for managed file transfer; and Oracle
IoT Cloud Service, for IoT integration.
STRENGTHS
Resonance with PaaS market demands: Oracle's EiPaaS development and roadmap address
the diverse capabilities and use cases in this market and capitalize on enabling HIP
approaches. A go-to-market strategy drawing on a synergistic focus between its EiPaaS and
other Oracle PaaS and SaaS technologies, brings together Oracle's portfolio. An emphasis on
supporting IoT integration, and a mix of application and data integration, data sharing and
governance opportunities capitalizes on demand trends.
Brand awareness and market presence: Oracle's size and global coverage of applications and
analytics solutions enable it to draw on a huge customer base and a wide product distribution
model for positioning its EiPaaS offerings. Oracle rapidly expanded its EiPaaS installed base
during 2017, to almost 3,000 customers to nearly triple in size. Broad usage of Oracle's
technologies within its customer base has driven wide availability of community support,
training and third-party implementation practices.
Offering strategy capitalizes on evolving trends: EiPaaS functionality as part of a broad
solution set positions Oracle well to compete with major competitors who have an established
EiPaaS specialization in this market. Evolving an offering strategy around enabling autonomous
cloud integration and ML-based recommendations for APIs, along with approaches for
contextual and chat-based search interfaces, extends integration delivery for digital business
transformation.
CAUTIONS
Integrated usage and support across portfolio: To facilitate a seamless expansion of
deployments across use cases, reference customers expressed their desire for improvement in
technical help and simpler integrated use of EiPaaS tooling with Oracle's other products.
Complex offering model: Concerns about Oracle's customer engagements were reported by its
reference customers. These involved challenges with navigating pricing models and the billing
arrangements, and determining appropriate licensing across the extensive range of EiPaaS
solutions and deployment choices. Oracle's recently introduced Universal Cloud Credit model
sets out to simplify how customers order and procure Oracle's cloud-related offerings.
Implementation delivery: Implementation delivery, a longer learning curve and technical
guidance including documentation, are cited as challenges by Oracle's reference customers in
some circumstances when implementation requirements and complexity grow. Customers
desire easier ways to accomplish platform administration and team-based development.
SAP
Founded in 1972 and based in Walldorf, Germany, SAP's EiPaaS offering is framed in its broader
PaaS strategy called SAP Cloud Platform (CP). With its integration-related capabilities, SAP CP
supports multiple use cases and includes functionality for application, data, process and B2B
integration; stream analytics; workflow; API management; IoT integration; batch and real-time
data replication/synchronization; and data quality. SAP CP is available in non-SAP cloud
infrastructure including AWS, Google Cloud Platform and Microsoft Azure.
Those capabilities leverage the SAP HANA in-memory DBMS and are available in different
packages, including SAP Cloud Platform Integration (CPI), SAP Cloud Platform API Management
and SAP Cloud Platform for the Internet of Things.
STRENGTHS
Broadening usage and extensive functionality: SAP's EiPaaS technologies are used for diverse
use cases and deployed in conjunction with SAP's broad portfolio, with a vision for simplifying
integration powered by its in-memory computing infrastructure. A focus on IoT-, API- and AI-
enablement, alongside other SAP offering strategies in multicloud and data hub, enhances
relevance for applications, data and analytics scenarios, to utilize rule-based autoscaling, self-
healing and an ML-enabled integration solution advisor.
Portfolio ecosystem: Customers value the linkage of SAP's EiPaaS and adjacent products for
application and data integration, self-service data preparation, information governance and
master data management in combination, for solving complex problems in the SAP
landscape. CPI provides an expanding range of prepackaged integration flows for SAP's SaaS
applications, including SuccessFactors, Ariba, Concur and S/4HANA Cloud.
Market presence and growth: With approximately 1,500 new EiPaaS customers added during
2017, SAP's pedigree as a large incumbent provider of applications and analytics solutions
positions it to capture significant EiPaaS revenue and growth by leveraging its broader
customer base.
CAUTIONS
Integration of product components: SAP continues to simplify seamless use between EiPaaS
and its broader portfolio. However, making multiple tools work together across EiPaaS and the
diverse integration offerings of SAP, is reported by its reference customers as a challenge an
area that SAP continues to focus on in maturing its offerings.
Customer experience: SAP's reference customers' feedback indicates below-average
satisfaction with quality, consistency and response in the processes for assisting with
implementation and issue resolution. This adversely affects customer experience and the
perception of value relative to cost.
Product messaging: Some prospects and buyers, particularly organizations with an awareness
of the individual products that existed before the integration packaging as part of SAP Cloud
Platform, indicate a need for improved clarity and guidance during EiPaaS evaluations. SAP's
efforts to address these needs include a recently published CIO Guide for Integration,
professional services to assist with adoption of CPI integration flows, and associated
readiness-check and guidance for best practices.
Scribe Software
Founded in 1995 and based in Manchester, New Hampshire, U.S., Scribe Software is a provider of
integration technology platforms.
The Scribe Online platform is a multitenant EiPaaS offering with a number of different licensing
models. Integration Service is the general-purpose EiPaaS subscription. Replication Service is a
data synchronization subscription to enable users to get data from their application portfolio into
an analytics tool. Migration Service is a short-term service providing data migration capabilities
between existing applications and their replacements. The platform/OEM/distributor model
enables SaaS providers to include Scribe as part of their offering.
STRENGTHS
Integration developer productivity: Scribe Online's most recent UI (released in 4Q16) provides
ad hoc integrators with a straightforward method of developing, testing and managing
integration flows. Scribe released a new developer success portal in 2017. This portal provides
access to self-guided learning aids, a developer forum and tools (such as its full platform API,
and two methods for building customer connectors a fast framework for proofs of concept
and a full connector development kit).
Go-to-market strategy: Scribe has had historical strength through its partner channel and its
focus on the midmarket segment. Scribe's "partner first" design includes capabilities that ease
end-user management (particularly for managed service providers), and a full API to their entire
platform. However, direct (to end user) and enterprise sales have become an increasing focus.
The year 2017 saw the added ability to purchase Scribe's integration services through
Salesforce AppExchange and Microsoft AppSource. Scribe Online's 1,200 SIs are a testament
to its desire to work with partners, but also a benefit for direct customers looking for
outsourced integration help.
Customer experience: Scribe's customer reference scores put it among the top 30% in this
Magic Quadrant in terms of overall satisfaction with the product, vendor and value.
CAUTIONS
Platform versatility and innovation: While Scribe Online is good for typical cloud service
integration scenarios, it lacks capabilities that would enable it to be the fully featured tool
which enterprise EiPaaS customers look for. For example, there is no native support for EDI-
style B2B integration. Also, while the platform can publish APIs in the Open Services Access
(OSA)/Swagger standard and connect to other enterprise API management products, the
platform provides no native API management capability. While there are some starter packs for
common integration flows among the endpoints, there is no application of ML techniques for
suggesting next steps unlike the solutions of the leading EiPaaS vendors.
Market presence: Scribe has expanded its geographic presence by deploying a control plane to
EMEA, and plans to expand into Australia during 2018. While it has recently invested in its
commercial operations in order to support larger enterprises, it has historically been less visible
in competitive evaluations of the EiPaaS market, particularly those outside North America.
SnapLogic
Founded in 2006, and based in San Mateo, California, U.S., SnapLogic offers Enterprise
Integration Cloud for data and application integration, which is used by more than 1,275
enterprise customers. SnapLogic offers a rich set of native iPaaS capabilities to support cloud
and on-premises applications, APIs, analytics, big data and IoT integration use cases.
SnapLogic provides an intuitive web-based user interface for specialist, ad hoc integrators and
citizen integrators. Users can leverage the vendor's more than 450 adapters (Snaps), develop
pipelines (integration flows that can be turned into REST APIs that return data when invoked), and
create/find/modify reusable patterns.
STRENGTHS
Client growth and market traction: SnapLogic added 525 customers in 2017, which
represented a 70% increase over 2016 and was well above the market average. It also extended
its partner network to more than 60 partners, introduced a midmarket strategy and pricing,
expanded its free trial offering, and appointed new senior sales and partnership leaders.
Product innovation and evolution: SnapLogic supports hybrid deployments and a variety of use
cases, particularly for analytics and big data integration, along with SaaS integration and basic
API integration. In 2017, SnapLogic launched Iris AI, its AI and ML-based capabilities to help
improve integration accuracy and to speed up routine integrations. As an early mover in
leveraging AI in EiPaaS, SnapLogic has demonstrated product innovation and has a roadmap
that includes enhancing AI-based capabilities and use cases.
Customer experience and extensive deployment: Reference customers scored SnapLogic as
above average in overall customer satisfaction and experience, value for money and delivery
and execution. This performance helped SnapLogic drive the highest, and significantly above
average, number of projects and implemented integration flows and processes per customer in
this Magic Quadrant.
CAUTIONS
B2B, API management and ecosystem community features: SnapLogic does not offer its own
B2B integration to support EDI interactions, or provide full life cycle API management
capabilities. For full life cycle API management, SnapLogic partners with Apigee and 3Scale
(both of which have been acquired in recent years), and Orderful for B2B integration to support
EDI. SnapLogic relies on these partners to provide ecosystem community features such as API
developer portals and B2B partner portals; however, reference customers scored SnapLogic as
below average for these features. To help address some of these gaps, SnapLogic's roadmap
includes increasing investment into both its core product and its partnerships; for example,
involving Apigee, and API tooling through Swagger.
Market awareness and positioning: Although SnapLogic increased its revenue share from
regions outside of North America in 2017, it is still less visible than some EiPaaS competitors
outside of this region. It is often not viewed by large companies as a strategic middleware
partner. This suggests that SnapLogic has yet to see the full benefits of its increased
investment in marketing, partnerships and geographical expansion in EMEA, Latin America and
Asia/Pacific.
Developer user interface and experience: Some SnapLogic reference customers raised issues
relating to its development user interface. These included having higher expectations of the
overall UI experience for more technical users in the form of better navigation and more
online documentation, for example. Such implementation-related challenges could affect
SnapLogic's otherwise solid customer experience scores.
Workato
Workato, based in Cupertino, California, U.S., is a private company fully dedicated to the EiPaaS
market. Founded in 2013, Workato first released its EiPaaS offering in the same year. Investors
include Storm Ventures, Salesforce and Workday.
The Workato EiPaaS solution is available in five editions (Base, Professional, Business, Business
Plus and Enterprise Platform) differentiated by functionality, amount of consumable resources
(connections, transactions, job history store, polling intervals) and level of support. These
editions are also available at a discounted price for not-for-profit organizations. All the editions
are freely available for a 30-day trial and a Community Edition is available free of charge for
individual citizen integrators.
STRENGTHS
Customer experience: Workato got the top scores from its reference customers in all the
customer experience-related criteria, including overall experience with the provider, delivery and
execution, sales process, contract flexibility, SLAs, services and value for money.
Product: The functionally rich, versatile and enterprise-class Workato EiPaaS solution appeals
to a full range of buyers thanks to its powerful development tools, ML-enabled user experience,
and governance tools accessible also to nonprofessionals via a bot platform (Workbot).
Reference customers rated all its functionality as above average, often significantly so.
Innovation: Workato was one of the first EiPaaS providers to deliver a rich set of AI-enabled
capabilities to assist integration developers. In 2018, the company plans to extend its use of AI
in areas such as security, optimization and self-healing, robotic process automation support,
connectors' configuration and autogeneration of simple integration flows.
Sales strategy: In addition to its own direct sales organization, Workato relies on partnership
with key SaaS providers (Salesforce, Workday and Slack), regional SIs, and on OEM sales. It
initially targets citizen and ad hoc integrators, but ultimately aims at enterprise IT. In this way, it
has collected about 3,500 clients during the past five years, tripled revenue in 2017 which
was well above the market average and plans for further substantial growth in 2018.
CAUTIONS
Geographic strategy: Workato generated 46% of its 2017 revenue from outside North America,
primarily through partners, and has a good direct presence in Asia/Pacific. However, in EMEA it
only has a small staff, which is probably insufficient to support a large number of enterprise
clients in the region.
Versatility: Workato does not yet provide EDI B2B integration capabilities. Moreover, Workato's
lack of an on-premises deployment option for the platform's runtime executive makes it of
limited interest for organizations with demanding, low-latency, ground-to-ground integration
needs or severe security constraints and compliance.
Operations: Despite support from several regional SIs, and with a team of about 90 employees
mostly based in the U.S. and India, the company may not be attractive to user organizations
requiring local commercial presence and support in their country.
Mind share: Only a handful of reference customers mentioned Workato as an offering that they
had considered, and discarded in favor of other providers. This indicates a still scarce
awareness in the market, at least outside of North America and especially among enterprise IT
buyers.
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
Cloud Elements
Workato
Dropped
Actian
Attunity
Fujitsu
Terrasky
Youredi
Inclusion and Exclusion Criteria
The inclusion criteria represent the specific attributes that analysts believe are necessary for
inclusion in this research.
To qualify for inclusion, vendors must deliver a service with the following characteristics.
It has to be a cloud service:
Available by subscription and accessible over internet technologies
Available uniformly to all qualified subscribers
Including some sharing of physical resources between logically isolated tenants (subscribers
or applications)
Including some self-service provisioning and management by subscribers
Including bidirectional scaling without interruption of activities and with some automation
Including some instrumentation for resource use tracking
It has to be a PaaS solution:
It encapsulates the underlying virtual or physical machines, their procurement, management
and direct costs, and does not require tenants to be aware of them.
It delegates to the providers the patching, versioning and health of the platform stack.
It has to provide the following iPaaS capabilities:
Features targeting application integration (that is, the ability for different applications to
exchange messages, call each other's business functions, automate business process)
Features targeting data integration (that is, the ability for different data stores to synchronize,
to move data from one to the other, to combine and aggregate data from different stores)
Connectivity to different endpoints for on-premises and cloud, including:
Application connectors (for example, Salesforce, Oracle E-Business Suite, SAP S/4HANA
and others)
Data source connectors (for example, file systems, SQL and no SQL databases)
Technology connectors (for example, FTP, HTTP, Java Message Service (JMS), Open
Database Connectivity (ODBC) and others)
Multiple data/message delivery styles including:
API-based
Messaging-based
Batch
Data and message validation
Data and message mapping and transformation
Data and message 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 has to be enterprise-grade and aimed at enterprise-class projects, by providing:
Support for HA/DR
Secure access to endpoints and to the platform functionality
Technical support to paying subscribers
It has to be marketed for a broad range of use cases, verticals and industries.
It has to be provided as a "stand alone" service directly usable by the subscriber. To use the
platform, clients can subscribe to the EiPaaS capability only, not just to some other cloud
service a SaaS application or another form of PaaS, such as aPaaS, of which the iPaaS
capabilities are an "embedded" subset.
It has to be generally available as of 1 November 2017, with at least 600 paying client
organizations by the same date. Please note that we take into account the number of paying
organizations and not individual users. We consider both "direct" and "indirect" clients (that is,
organizations that bought a provider's EiPaaS solution via a reseller or OEM partner).
Evaluation Criteria
Ability to Execute
Ability to Execute criteria aim at evaluating a provider's ability to deliver an EiPaaS solution that
offers the expected set of functions, ensuring that customers' integration projects succeed while
growing providers' revenue and market share. In this maturing market, where aggressive new
entrants try to win new clients as fast as possible, the most important factors for success are:
The platform's ability to provide a broad set of capabilities targeting a wide range of client use
cases (Product or Service criterion).
The provider's proven track record of enabling integration projects to succeed through
responsive support, adequate pricing and the ability to establish positive commercial
relationships (Customer Experience criterion).
Other important elements for success in the enterprise iPaaS market are:
The provider's installed base and ability to build up a credible and long-term business (Overall
Viability criterion).
The provider's ability to deliver on the sales strategy with competitive, flexible pricing models
for different targeted buyers (Sales Execution/Pricing criterion).
A proven track record in keeping pace with evolving market requirements (Market
Responsiveness/Record criterion).
The provider's effectiveness in generating brand awareness and stimulating prospect interest
through sound marketing campaigns (Marketing Execution criterion).
A strong global sales and marketing structure and support/professional services, a vast
partner network and multiple, geographically distributed data centers (Operations criterion).
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
section and detailed in the following subcriteria: enterprise worthiness, openness, integration
developer productivity, ease of operations, citizen integrator support, platform versatility, core
integration features, ecosystem/community support features, policy management and
enforcement.
Overall Viability: Viability includes an assessment of the overall organization's financial health,
the financial and practical success of the business unit. Also, 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. Important subcriteria
are product revenue, profitability, and research and development investment ratios.
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. Items of importance here are transparency in
pricing, ease of access for evaluation and client growth rates.
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.
The subcriteria followed here were frequency of release schedule, adjustment of platform
features based on client demand, and anticipation of market direction.
Marketing Execution: The clarity, quality, creativity and efficacy of programs designed to deliver
the organization's message. This message is designed 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. Of specific interest, was the differentiation of buyer journeys, market presence
and client perception.
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, SLAs, and so on. Here, we paid
particular attention to customer satisfaction with products, customer satisfaction with the vendor
and willingness to recommend the offering to others.
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.
Table 1. Ability to Execute Evaluation Criteria
Evaluation Criteria
Product or Service
Weighting
High
Overall Viability
Weighting
Medium
Sales Execution/Pricing
Weighting
Medium
Market Responsiveness/Record
Weighting
Medium
Marketing Execution
Weighting
Medium
Customer Experience
Weighting
High
Operations
Weighting
Medium
Source: Gartner (April 2018)
Completeness of Vision
Completeness of Vision criteria aim to assess providers' ability to meet the emerging
requirements and drive enterprise iPaaS adoption (in new territories and toward a more strategic
positioning), while also growing a profitable and self-sustaining business.
During the next 12 months, success in this market will, therefore, primarily depend on:
Articulating differentiating value propositions and positioning in the market (Marketing Strategy
criterion)
Devising an effective and efficient sales strategy (Sales Strategy criterion)
Having a roadmap capable of addressing new functional and nonfunctional requirements
(Offering [Product] Strategy criterion)
Formulating a geographic expansion strategy ( Geographic Strategy criterion)
Other important factors will include:
The provider's ability to understand the evolution of the iPaaS market (Market Understanding
criterion) , for example:
Emerging use cases such as API management, MAI, big data and IoT integration
The user organization's growing focus on citizen integrators and adaptive/bimodal
approaches to integration projects
A general market trend toward the HIP approach to delivering integration capabilities
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. Key for the EiPaaS market is an understanding of the different integration personas and
their buyer journey as well as the breadth of integration use cases.
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 which 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. Of special
interest are the different approaches for direct sales, ISV/OEM sales and SI sales strategies.
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. The subcriteria for this are enterprise worthiness, openness, integration
developer productivity, ease of operations, citizen integrator support, platform versatility, core
integration features, ecosystem/community support features, policy management and
enforcement.
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. The subcriteria are
platform ecosystems such as ERP, CRM and others; industry focus such as healthcare, education,
retail and others; and vendor ecosystems such as Salesforce, Oracle, SAP and others.
Innovation: Direct, related, complementary and synergistic layouts of resources, expertise or
capital for investment, consolidation, defensive or pre-emptive purposes. Specific focus is given
to the application of AI and ML to ease integration challenges.
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. This includes,
locations of the control plane deployment and the runtime plane deployment as well as the
partner network.
Table 2. Completeness of Vision Evaluation Criteria
Evaluation Criteria
Market Understanding
Weighting
Medium
Marketing Strategy
Weighting
High
Sales Strategy
Weighting
High
Offering (Product) Strategy
Weighting
High
Business Model
Weighting
Medium
Vertical/Industry Strategy
Weighting
Medium
Innovation
Weighting
Medium
Geographic Strategy
Weighting
High
Source: Gartner (April 2018)
Quadrant Descriptions
Leaders
During 2017, the Leaders quadrant accounted for almost 30,000 clients and more than $600
million in revenue, representing more than half of the entire EiPaaS market. The vendors in this
quadrant have client numbers in the thousands for their EiPaaS offering, and often many
thousands of indirect users via embedded versions of the platform and through "freemium"
options.
They have a solid reputation, with notable market presence and a proven track record in enabling
multiple integration use cases often supported by the large global networks of their partners.
Their platforms are well-proven and functionally rich, with regular releases to rapidly address this
fast-evolving market.
As the market evolves to provide further capabilities over the coming months and years, it is the
Leaders that are best positioned to continue pushing their dominance, although leadership
cannot be taken for granted. In the fast-moving EiPaaS market, one misstep could have
catastrophic consequences.
Challengers
Challengers in EiPaaS have been in the market for several years and have notable installed bases
of thousands of clients, with a mature offering that is proven for multiple integration scenarios.
Challengers also have the financial strength and commitment to compete aggressively in the
iPaaS market; consequently, they often offer a competitive platform, at least for certain verticals
and use cases.
However, Challengers have a somewhat limited perspective on how the EiPaaS market will evolve,
who the buyers are (and will be), what the use cases are and how user expectations will evolve.
This results in their offerings being more narrowly focused than those of the Leaders. Typically,
they pursue a more focused go-to-market strategy that follows their existing client base, creating
a functionally more limited platform roadmap as a result. Their sales and marketing strategies
are somewhat constrained by their more limited focus on the EiPaaS market.
Challengers have the potential to make the transition into leadership positions by articulating a
more aggressive and ambitious vision and roadmap, and by putting extra sales and marketing
focus on the EiPaaS space. However, they will have to carefully monitor the competition, because
some of the best-executing Niche Players may turn into Challengers during the next 12 months.
Visionaries
Visionaries understand the specific requirements of this market and are innovating through a
combination of technology, delivery models and go-to-market strategies. This year, it is
interesting to note that all of the Visionaries see their EiPaaS offering as a key element of a
broader integration strategy. This strategy combines software licensing, software subscriptions
and as-a-service subscriptions, with EiPaaS being one of many channels for the underlying
integration capabilities.
Visionaries' Ability to Execute is lower than that of the Leaders, because of:
A smaller installed base
Unaggressive and reactive sales operations
A lack of strategic commitment to the EiPaaS market, instead focusing on broader integration
delivery choices
Mixed results with regard to customer experience
All of the providers in the Visionaries quadrant 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
outside of their traditional IT client base. They have entered the market through acquisition, by
significantly re-engineering their on-premises products for the cloud or, in some cases, by
developing a new iPaaS technology.
Some Visionaries are well-positioned to make the transition into the Leaders quadrant during the
next 12 months, if they manage to execute on their vision, gear up their sales and marketing
machines and improve the customer experience for their clients.
Niche Players
Niche Players are often small companies; in many cases, startups, most of which have entered
the market during the past few years. They typically have a relatively narrow focus in terms of the
use cases they support, the geographies they serve or the sales strategy they are implementing.
However, their technology is often excellent and their customers show a high degree of
satisfaction. Niche Players' offerings can therefore often be the appropriate option for user
organizations that are, for example, sensitive to local presence and support, want a close
relationship with a provider, or seek a platform that focuses on specific requirements. Provision
of these requirements can often offset risks in other dimensions.
Providers in this quadrant are the ones facing the greatest challenges. With many new entrants
into the Niche Players quadrant, and many more entrants from the domain-specific integration
PaaS (DSiPaaS) market targeting this space, Niche Players face the greatest competition. Niche
Players are also more likely to be the target of acquisition, because they are often specialized
EiPaaS players focusing on a relatively narrow function or market that could easily complement
an existing broader integration platform.
Context
Today's reality is that application portfolios are now hybrid, with many organizations having to
integrate multicloud environments with on-premises applications. Fewer organizations with
existing integration skills are finding that their established on-premises integration practices can
be used to integrate with multicloud applications. Most organizations find that their existing
approaches are just not delivering fast enough to meet the new challenges. For organizations
that never established integration practices on-premises, the thought of having to start now is
daunting. The large costs, lack of available skills, long delivery times and complex infrastructure
builds associated with traditional on-premises approaches are just not in line with today's lean
approaches and timelines. Enter iPaaS, with its low-cost entry points: targeted to specific
business outcomes, in the case of DSiPaaS; and the breadth of user experiences, in the EiPaaS
segment (see "Technology Insight: Enterprise Integration PaaS" ).
A rapidly growing but congested iPaaS market landscape is creating a bifurcation between
enterprise-oriented and domain-specific offerings:
EiPaaS offerings are functionally rich and versatile enterprise-focused platforms and are
increasingly on a collision course with classic integration software offerings, but also
potentially too generic to address niche use cases.
DSiPaaS offerings are positioned as super-high productivity, fit-for-purpose, persona-oriented
platforms targeting very specific markets, use cases, verticals or ecosystems.
Many thousands of user organizations have adopted an EiPaaS solution during the past 12
months, with Gartner estimating that more than 50,000 organizations leveraged some form of
iPaaS in 2017. During this time, Gartner analysts have recorded a huge growth in iPaaS interest,
adoption and popularity. We anticipate that this trend will continue during the next two to three
years, although possibly at a slower pace than was seen in the past three years.
The vendors are also reacting fast, with many having several releases a year and, in some cases,
adding features on a weekly basis. They are rapidly enabling innovative features at a rate that is
hard to capture in a report such as this.
As with all Magic Quadrants, this is a snapshot in time, reflecting the state of play during the period
of research and writing.
The evolving nature of EiPaaS to handle multiple integration scenarios means that almost all
vendors included in this year's Magic Quadrant provide features for application integration, data
integration, API management and B2B integration. Many are leveraging AI and ML to provide their
platform with digital integrator capabilities to boost integration developer productivity, improve
operational aspects of the platform and, ultimately, facilitate integration delivery to nontechnical
users of the platform (see "Innovation Insight for Digital Integrator Technologies" and "Integration
Personas and Their Impact on Integration Platform Strategy" ).
A growing number of providers have developed efficient indirect and OEM channels. Therefore, a
growing number of ISVs, as well as SaaS and other cloud service providers, bundle or resell a
third-party iPaaS in their offering. Increasingly, global, regional and local SIs incorporate iPaaS
offerings in their services and projects, and have often signed strategic agreements with one or
multiple iPaaS providers.
During the next 12 months, application leaders responsible for integration should look at the
providers in this Magic Quadrant when it comes to:
Supporting line-of-business/departmental adaptive CSI, B2B, API, MAI and, increasingly, IoT
projects.
Looking for rapid and low-cost resolution of simple/medium complexity integration
requirements.
Reducing capital investments in, and ongoing operational costs for, integration technology.
Complementing established on-premises integration middleware with platforms targeting CSI,
MAI, IoT and API requirements. This, in order to implement an HIP, in the context of a bimodal
integration strategy, and to support both traditional systematic and adaptive integration
requirements, including the facilitation of citizen integrators where appropriate.
When evaluating EiPaaS providers, IT leaders will have to realize that the competitive landscape
is varied and differentiated:
Some providers have global ambitions, while others target only well-identified geographies.
Most providers focus on EiPaaS, but a certain number of players come to market with either a
broader PaaS proposition or a broader hybrid integration proposition, or offering iPaaS as a
companion to other cloud offerings (such as IaaS or SaaS).
Some offerings are neutral with respect to the SaaS landscape, whereas certain platforms are
biased toward a specific, narrow set of SaaS offerings.
Some providers focus on systematic integration projects, while most target adaptive
integration. Many are also moving toward citizen integrator support.
Some providers primarily target large and global organizations, whereas others have a singular
focus on the low end of the market. Only a few try to cover the whole spectrum of potential
buyers.
To establish and grow a client base, some smaller vendors are choosing to differentiate
themselves from the EiPaaS vendors by focusing on verticals such as logistics and supply chain,
or by focusing on specific integration scenarios such as data synchronization. These are classed
as DSiPaaS offerings.
When selecting the right EiPaaS vendor, IT leaders should also consider factors such as:
Short-term tactical versus long-term strategic use of the platform
Type and number of endpoints being connected: SaaS, packaged applications, internally
developed applications, mobile apps, social media, file systems, databases and so on
Providers' familiarity with, and track record in delivering to, the organization's vertical industry
The integration skills of the expected users of the platform
The ability to federate the iPaaS with the established on-premises integration platform, whether
in support of specific requirements or in the context of HIP initiatives
SLAs and quality-of-service requirements
Security and regulatory compliance needs
Geographic location of the iPaaS data centers and support centers
The ability to deploy the iPaaS platform in a hybrid mode, including multicloud options across
the iPaaS public cloud and IaaS public clouds as well as within the client data centers
Availability and cost of iPaaS skills from the provider and external service providers
Long-term cost expectations and available budget
IT leaders should start the selection process after having developed a thorough understanding of
their requirements and priorities. Be pragmatic and tactical and evaluate DSiPaaS solutions
where appropriate for quick wins. Expect disruption in the EiPaaS market during the next two to
three years as market consolidation begins.
Market Overview
Gartner estimates that the iPaaS market continued to expand notably during 2017, approaching
$1,200 million in revenue and growing approximately 70% in terms of providers' subscription
revenue when compared with 2016. Gartner estimates that four vendors in the Magic Quadrant
collected more than $100 million in EiPaaS revenue during 2017, up from two vendors the
previous year.
During 2017, we noticed a clear split in the iPaaS market. The larger vendors shifted to what has
become EiPaaS, for more strategic adoption and a broader set of use cases. There was also huge
growth in the number of domain-specific vendors, with a much narrower go-to-market strategy
focused on domains such as B2B, education, accounting and others (see "Market Snapshot:
Integration Platform as a Service, Worldwide, 2016" ).
The more organizations adopt cloud and SaaS applications, the more appealing vendor-managed
solutions become. It is expected that the service-based approach for IT will become the preferred
option over the software-based approach over time, as end-user organizations look to downsize
the operations side of their IT portfolios.
All of the large, traditional integration vendors have now entered the EiPaaS market, for a number
of reasons:
To provide flexible development and test environments to allow greater agility for existing
integration clients in their on-premises integration software
To provide a "lift-and-shift" option for existing integration clients to outsource the operations of
a traditional integration platform to the vendor
To counter the penetration of enterprise iPaaS pure-play providers in large organizations,
especially at the line-of-business/departmental level
To address the SMB market, which has previously found these vendors' solutions too expensive
or too complex to deploy
To reimagine their integration offerings, often within the context of an HIP vision
Other powerful drivers for EiPaaS adoption will be MAI, and API publishing and management,
which will create a growing overlap of, and convergence with, API management and mobile back-
end service (MBS) offerings. We expect that EiPaaS adoption will also be driven by IoT
requirements (although at a later stage), which will determine some degree of functional overlap
and create a demand for integration within emerging IoT platforms.
Increasingly, we see a number of the larger EiPaaS vendors whether by market share or size of
parent company adding more channels to their underlying EiPaaS platforms. Examples of
adding channels to these platforms include: as an embedded capability inside SaaS offerings,
white-labeling for large SIs, or as features embedded as integration services within larger PaaS
suites or HIP implementations. These trends are reshaping the enterprise iPaaS market and
redefining the characteristics and attributes required to compete in it.
However, adoption may be hampered by any of the following:
Some clients desire to operate the platform themselves (application integration suite software)
The lack of standards and skills
Complexity of collaboration between the different features of an offering
The nuisance of federating EiPaaS with classic on-premises integration platforms and API
management platforms, in the context of HIP strategies
The questionable viability of some providers; several players are extremely small and therefore
vulnerable to short-term market shocks as well as to the initial low profitability of the
subscription business model
This Magic Quadrant identifies 17 providers that met our inclusion criteria for EiPaaS, and we are
aware of a handful of others with EiPaaS aspirations. However, we are also aware of more than
90 iPaaS providers active in the overall iPaaS market with new ones appearing on a regular
basis, predominantly in the more-focused DSiPaaS segment of the market.
Market consolidation is beginning. On 20 March 2018, Salesforce signed a definitive agreement
to acquire MuleSoft. We expect more acquisitions to happen during the next 12 months, either by
existing integration vendors buying a market leadership position or through non-integration
vendors looking to ease adoption of their offerings, as in the Salesforce case. Leadership
positions will change, some players will be acquired or simply disappear from the market, and the
most powerful providers will gain stable leadership positions. We recommend that end users who
are not yet piloting iPaaS projects begin to do so.
Acronym Key and Glossary Terms
AI
API
artificial intelligence
application programming interface
AWS
artificial intelligence
Amazon Web Services
CSI
artificial intelligence
cloud service integration
DSiPaaS
artificial intelligence
domain-specific iPaaS
EiPaaS
artificial intelligence
enterprise iPaaS
ETL
artificial intelligence
extraction, transformation and loading
HA/DR
artificial intelligence
high availability/disaster recovery
HIP
artificial intelligence
hybrid integration platform
HIPAA
artificial intelligence
Health Insurance Portability and Accountability Act
IoT
artificial intelligence
Internet of Things
iPaaS
artificial intelligence
integration platform as a service
ISV
artificial intelligence
independent software vendor
MAI
artificial intelligence
mobile application integration
ML
artificial intelligence
machine learning
SMB
artificial intelligence
small or midsize business
SOC
artificial intelligence
Service Organization Control
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.
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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