In my last post, we looked at the how accounting productivity has leapt 40% over the last ten years. In many organizations, the effect has been transformative, as the nature of the work has migrated from transactional data entry to true value-add services. Over the coming decade I see three technologies that will accelerate this trend: iPaaS, OCR and Pattern Recognition. In this post, we’ll explore iPaaS.
iPaaS stands for “Integration Platform as a Service” and it’s part of what some have called the “hybrid cloud.” I know, the last thing you want to hear about is more cloud stuff, but bear with me. The reason that iPaaS is even a thing is because lots of businesses have a mix of applications — some local and some in the cloud. The problem that arises from that mix is that they don’t always play nice.
That’s where iPaaS comes in.
iPaaS allows companies to connect multiple standalone systems — both onsite and in the cloud — at a low cost. For example, if you need to connect Oracle with Salesforce there is an iPaaS solution for that. Instead of building expensive custom connections, companies can now call Dell or IBM and buy a proven, pre-built iPaaS connection for a fraction of the cost.
Imagine the savings by removing duplicate data entry across entire processes such as purchasing-to-accounts-payable or hire-to-payroll. That is the promise of iPaaS. And not only is it here, companies are already making it easier to use and faster.
That means firms are embracing iPaaS at an accelerating rate. The iPaaS market is expected to grow from roughly $200M in 2014 to $950M by 2019. New entrants such as MuleSoft and SnapLogic have raised millions while incumbent technology players such as Dell and IBM have made strategic acquisitions.
As companies are able to connect multiple data sources in real time, entirely new value is created. For example, a company could adjust customer credit limits based on real-time news reports such as bankruptcy filings. And this is just the tip of the iceberg.
I believe in both the near and long-term benefits of integrated systems which is why Tallie designs, builds and supports our own integrations since the beginning. Check out our current integrations and reach out to us anytime for a deeper dive.