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True or False? Integration Costs are Set to Become Higher than Application Costs

Ivar Sagemo

The talk around the IT water cooler is that integration costs are on track to become higher than application costs within five years, with integration becoming more complex and burdensome. But like all predictions, what can we believe? Should we start to prepare for the worst? And, most important of all, who's the one to blame for this problem?

The experts predict that integration hassles are on the horizon. Gartner predicts that:

- By 2018, more than 50% of the cost of implementing 90% of new large systems will be spent on integration

- By 2016, midsize to large companies will spend 33% more on application integration than in 2013*

Ovum also estimates that spending on integration middleware is growing at a compound growth rate of 9.1% between 2012 and 2018, reaching $17.9 billion by the end of 2018.**

Whether you come from the business or IT side of an enterprise, nobody can deny the fact that the introduction of BYOD, the strong use of the cloud and dependency on mobile and social media have all increased the load that IT systems have to bear.

In addition, organizations are increasingly focused on integrating with customers, suppliers and partners. Integrating with external systems adds to the complexity. It's only logical that connecting these disparate systems and adding the glue to make them all integrate seamlessly has to be more complex than it used to be. But does adding in these elements really create an integration Armageddon?

Integration Glue

Ovum's Saurabh Sharma says that organizations are now realizing that cloud computing and SaaS can lead to more information silos and greater integration complexity.

"SaaS vendors claim they provide web service APIs to ease the integration between SaaS and on-premise applications but APIs alone cannot ensure seamless interaction," he says.

IBM’s Doug Clark believes that a huge amount of time is spent integrating back office applications such as ERP and finance. Maintaining and integrating these applications swallows a lot of budget and, in the future, Clark predicts that companies will eventually want to integrate ERP and finance with cloud applications.***

One thing for sure is that disparate silos of information will continue to increase, and they will become more complex and abundant with greater care needed to integrate them correctly. Added to this, mobile applications have now moved beyond handset-based systems and are now used to connect to backend databases to pull up information while a user is on the move.

Enterprises are working to integrate BYOD and cloud as well as connecting with supplier customer data. At AIMS Innovation, we've seen that they are engaging in point-to-point integration, which is quick but will only backfire on TCO, complexity and scalability. Point-to-point integration improves the speed of integration but does not provide that strong, robust information flow that's needed to keep systems connected correctly.

With applications such as Hubspot, Salesforce or Zendesk, when you grow as an organization using these products, you need to integrate these systems into your network and you want to do it fast. Many providers have out-of-the-box integrations ready. But this is a less feature-rich form of integration than ones being done by integration engines such as BizTalk, Oracle and IBM. Point-to-point integration is often a "quick-win" but the downside is that you end up with integration spaghetti. It's costly to maintain, not standardized and person dependent.

Do We Have a Solution?

Point-to-point integration will lead to integration chaos — that much is certain. Even with integration engines, the growing use of cloud, BYOD and increased data volume will also lead to integration challenges.

Microsoft and others help by introducing integration platforms as cloud services to better facilitate hybrid /cloud scenarios. They also deliver integration as a service with flexible setup and billing, reducing TCO in a pay-as-you-go model.

Solutions such as monitoring your integration platform or using smart monitoring tools will also help to alleviate this problem. Monitoring is one of the tools that can pinpoint errors and give you granular insight into how each system is functioning, how effectively applications are integrating with each other and where performance is impacted.

Whether integration will become the IT burden that exceeds application costs has yet to be seen. The reality is that it will become more complex and important to organizations and it will emerge as one of the top IT challenges along with downtime and security for enterprises going forward.

Ivar Sagemo is CEO of AIMS Innovation.

* Gartner, Predicts 2013: Application Integration

** Ovum View, Saurabh Sharma, March 1, 2013. Global integration middleware market to hit $17.9 billion by 2018

*** Information Age, December 4, 2012. Cloud brings application integration out of the shadows

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True or False? Integration Costs are Set to Become Higher than Application Costs

Ivar Sagemo

The talk around the IT water cooler is that integration costs are on track to become higher than application costs within five years, with integration becoming more complex and burdensome. But like all predictions, what can we believe? Should we start to prepare for the worst? And, most important of all, who's the one to blame for this problem?

The experts predict that integration hassles are on the horizon. Gartner predicts that:

- By 2018, more than 50% of the cost of implementing 90% of new large systems will be spent on integration

- By 2016, midsize to large companies will spend 33% more on application integration than in 2013*

Ovum also estimates that spending on integration middleware is growing at a compound growth rate of 9.1% between 2012 and 2018, reaching $17.9 billion by the end of 2018.**

Whether you come from the business or IT side of an enterprise, nobody can deny the fact that the introduction of BYOD, the strong use of the cloud and dependency on mobile and social media have all increased the load that IT systems have to bear.

In addition, organizations are increasingly focused on integrating with customers, suppliers and partners. Integrating with external systems adds to the complexity. It's only logical that connecting these disparate systems and adding the glue to make them all integrate seamlessly has to be more complex than it used to be. But does adding in these elements really create an integration Armageddon?

Integration Glue

Ovum's Saurabh Sharma says that organizations are now realizing that cloud computing and SaaS can lead to more information silos and greater integration complexity.

"SaaS vendors claim they provide web service APIs to ease the integration between SaaS and on-premise applications but APIs alone cannot ensure seamless interaction," he says.

IBM’s Doug Clark believes that a huge amount of time is spent integrating back office applications such as ERP and finance. Maintaining and integrating these applications swallows a lot of budget and, in the future, Clark predicts that companies will eventually want to integrate ERP and finance with cloud applications.***

One thing for sure is that disparate silos of information will continue to increase, and they will become more complex and abundant with greater care needed to integrate them correctly. Added to this, mobile applications have now moved beyond handset-based systems and are now used to connect to backend databases to pull up information while a user is on the move.

Enterprises are working to integrate BYOD and cloud as well as connecting with supplier customer data. At AIMS Innovation, we've seen that they are engaging in point-to-point integration, which is quick but will only backfire on TCO, complexity and scalability. Point-to-point integration improves the speed of integration but does not provide that strong, robust information flow that's needed to keep systems connected correctly.

With applications such as Hubspot, Salesforce or Zendesk, when you grow as an organization using these products, you need to integrate these systems into your network and you want to do it fast. Many providers have out-of-the-box integrations ready. But this is a less feature-rich form of integration than ones being done by integration engines such as BizTalk, Oracle and IBM. Point-to-point integration is often a "quick-win" but the downside is that you end up with integration spaghetti. It's costly to maintain, not standardized and person dependent.

Do We Have a Solution?

Point-to-point integration will lead to integration chaos — that much is certain. Even with integration engines, the growing use of cloud, BYOD and increased data volume will also lead to integration challenges.

Microsoft and others help by introducing integration platforms as cloud services to better facilitate hybrid /cloud scenarios. They also deliver integration as a service with flexible setup and billing, reducing TCO in a pay-as-you-go model.

Solutions such as monitoring your integration platform or using smart monitoring tools will also help to alleviate this problem. Monitoring is one of the tools that can pinpoint errors and give you granular insight into how each system is functioning, how effectively applications are integrating with each other and where performance is impacted.

Whether integration will become the IT burden that exceeds application costs has yet to be seen. The reality is that it will become more complex and important to organizations and it will emerge as one of the top IT challenges along with downtime and security for enterprises going forward.

Ivar Sagemo is CEO of AIMS Innovation.

* Gartner, Predicts 2013: Application Integration

** Ovum View, Saurabh Sharma, March 1, 2013. Global integration middleware market to hit $17.9 billion by 2018

*** Information Age, December 4, 2012. Cloud brings application integration out of the shadows

Hot Topics

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According to Auvik's 2025 IT Trends Report, 60% of IT professionals feel at least moderately burned out on the job, with 43% stating that their workload is contributing to work stress. At the same time, many IT professionals are naming AI and machine learning as key areas they'd most like to upskill ...

Businesses that face downtime or outages risk financial and reputational damage, as well as reducing partner, shareholder, and customer trust. One of the major challenges that enterprises face is implementing a robust business continuity plan. What's the solution? The answer may lie in disaster recovery tactics such as truly immutable storage and regular disaster recovery testing ...

IT spending is expected to jump nearly 10% in 2025, and organizations are now facing pressure to manage costs without slowing down critical functions like observability. To meet the challenge, leaders are turning to smarter, more cost effective business strategies. Enter stage right: OpenTelemetry, the missing piece of the puzzle that is no longer just an option but rather a strategic advantage ...

Amidst the threat of cyberhacks and data breaches, companies install several security measures to keep their business safely afloat. These measures aim to protect businesses, employees, and crucial data. Yet, employees perceive them as burdensome. Frustrated with complex logins, slow access, and constant security checks, workers decide to completely bypass all security set-ups ...

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Cloudbrink's Personal SASE services provide last-mile acceleration and reduction in latency

In MEAN TIME TO INSIGHT Episode 13, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses hybrid multi-cloud networking strategy ... 

In high-traffic environments, the sheer volume and unpredictable nature of network incidents can quickly overwhelm even the most skilled teams, hindering their ability to react swiftly and effectively, potentially impacting service availability and overall business performance. This is where closed-loop remediation comes into the picture: an IT management concept designed to address the escalating complexity of modern networks ...

In 2025, enterprise workflows are undergoing a seismic shift. Propelled by breakthroughs in generative AI (GenAI), large language models (LLMs), and natural language processing (NLP), a new paradigm is emerging — agentic AI. This technology is not just automating tasks; it's reimagining how organizations make decisions, engage customers, and operate at scale ...

In the early days of the cloud revolution, business leaders perceived cloud services as a means of sidelining IT organizations. IT was too slow, too expensive, or incapable of supporting new technologies. With a team of developers, line of business managers could deploy new applications and services in the cloud. IT has been fighting to retake control ever since. Today, IT is back in the driver's seat, according to new research by Enterprise Management Associates (EMA) ...

In today's fast-paced and increasingly complex network environments, Network Operations Centers (NOCs) are the backbone of ensuring continuous uptime, smooth service delivery, and rapid issue resolution. However, the challenges faced by NOC teams are only growing. In a recent study, 78% state network complexity has grown significantly over the last few years while 84% regularly learn about network issues from users. It is imperative we adopt a new approach to managing today's network experiences ...

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