Legacy Integration Solutions Fail to Meet Expectations
March 17, 2020

Tushar Patel
Cleo

Having an intimate understanding of the exchange of information between suppliers and partners is key when it comes to quickly shifting operations as needed. This crucial knowledge of information flow is best provided by complex integrations between a business' various applications and partners — but doing so is much easier said than done.

Integration is a perennial topic of frustration for enterprise infrastructure — a seemingly never-ending round of "one step forward and two steps back." Why is integration so hard to nail down in your average enterprise? Why is it always a bone of contention among IT staff the world over? The Cleo 2020 State of Ecosystem and Application Integration Report answers those questions, and they are illuminating.

Integration Frustration

The 2020 Report surveyed 305 participants across North America and Europe who design, build and manage applications or infrastructure integrations. One takeaway that dwarfed all the others was a sweeping frustration with the integration status quo.

IT professionals are consistently unhappy with their current integration solutions: 63% say their own legacy integration applications are their biggest challenge. Over half maintain that legacy integration solutions are the problem, while just under half cite having multiple integration solutions.

The High Cost of Poor Integration

It's not just IT's angst fueling the urgency for integration. 30% of respondents say their companies' estimated losses were between $100,000 and $1M per year, while 10% maintain they lose more than $1M per year. Technology issues, data errors, SLA violations — they all add up to a serious problem.

Furthermore, slow onboarding of new partners, customers and suppliers cause 70% of participants to agree that  inefficient processes have a direct impact on productivity. Lost orders are another major source of concern. Just shy of 50% say their company loses more than 50 orders per year, while 17% put that number at 500 orders or more. Each lost order represents lost revenue, and lost confidence in the company that possibly impedes future business.

So, what kind of applications are proving particularly difficult to integrate? The study found that the answer reveals a complex web of applications adding to the complexity of integration:

■ Relational Databases

■ Cloud Storage

■ ERP Applications

■ CRM Applications

■ Finance Applications

■ HCM Applications

■ E-Commerce Applications

■ Marketplace Applications

The problem, of course, is that those applications form the backbone of a modern enterprise's productivity and profitability. When integrating them is an insurmountable challenge, it costs everyone money and, yes, increases frustration.

What's one major item on IT's wish list to wrangle this tangle of application integrations? Automated integration. An impressive 82% of respondents cite automating integration processes as a capability they crave, just behind the 84% who put flexible and highly available integration platforms at the top of the list.


The Full Picture

It's almost ridiculous to think that over 50% of IT staff have limited or no end-to-end visibility into transactions between their systems and those of partners, suppliers and customers, but that's the reality for more than half of companies. How are you supposed to manage and integrate what you can't even see?

That's why 78% of participants say consolidating  disparate integration solutions is a high priority, or possibly Electronic Data Interchange (EDI) modernization. Overall, they see visibility as a critical priority. We've discussed how integration challenges can negatively affect the bottom line, but systems consolidation and EDI modernization can provide a flexible and highly available integration architecture that could enable the end-to-end visibility IT needs to boost productivity and profit.

Ecosystem-Friendly

We've spent our time so far talking about problems — now it's time to talk about new approaches that offer solutions, like ecosystem integration. When we say ecosystem integration, we mean using a single platform for file-based, EDI and application integration to optimize end-to-end integration processes, establishing a dynamic network of partners, applications, suppliers, customers and marketplaces.

The 2020 Report identified ecosystem integration as a hot topic among respondents. An incredible 98% of respondents reported that they would expect to gain substantial benefits and business value from ecosystem integration. Specific benefits cited include cost savings, improved SLAs, happier customers, more efficient order processing, violation reductions and fewer lost orders.

A Modern Approach to Integration

The old way is seldom the best way when it comes to managing enterprise technology complexity. What the 2020 Report told us beyond a doubt is that the old models of opacity, multiple integration vendors, and poor ROI are effectively dead in the water. The integration professionals surveyed in the 2020 Report overwhelmingly want a modern solution that elevates all "flavors" of integration onto one platform, providing comprehensive visibility to speed integration across the enterprise.

Tushar Patel is CMO at Cleo
Share this

Industry News

February 06, 2023

Red Hat announced the availability of Red Hat Ansible Automation Platform on Google Cloud, providing a common and flexible IT automation solution that extends from the cloud, to the datacenter and out to the edge without additional complexity or required skills.

February 06, 2023

Cequence Security has enhanced the testing capabilities within its Unified API Protection Platform with the availability of API Security Testing.

February 06, 2023

Netlify has acquired Gatsby Inc.

February 02, 2023

Red Hat announced a multi-stage alliance to offer customers a greater choice of operating systems to run on Oracle Cloud Infrastructure (OCI).

February 02, 2023

Snow Software announced a new global partner program designed to enable partners to support customers as they face complex market challenges around managing cost and mitigating risk, while delivering value more efficiently and effectively with Snow.

February 02, 2023

Contrast Security announced the launch of its new partner program, the Security Innovation Alliance (SIA), which is a global ecosystem of system integrators (SIs), cloud, channel and technology alliances.

February 01, 2023

Red Hat introduced new security and compliance capabilities for the Red Hat OpenShift enterprise Kubernetes platform.

February 01, 2023

Jetpack.io formally launched with Devbox Cloud, a managed service offering for Devbox.

February 01, 2023

Jellyfish launched Life Cycle Explorer, a new solution that identifies bottlenecks in the life cycle of engineering work to help teams adapt workflow processes and more effectively deliver value to customers.

January 31, 2023

Ably announced the Ably Terraform provider.

January 31, 2023

Checkmarx announced the immediate availability of Supply Chain Threat Intelligence, which delivers detailed threat intelligence on hundreds of thousands of malicious packages, contributor reputation, malicious behavior and more.

January 31, 2023

Qualys announced its new GovCloud platform along with the achievement of FedRAMP Ready status at the High impact level, from the Federal Risk and Authorization Management Program (FedRAMP).

January 30, 2023

F5 announced the general availability of F5 NGINXaaS for Azure, an integrated solution co-developed by F5 and Microsoft that empowers enterprises to deliver secure, high-performance applications in the cloud.

January 30, 2023

Tenable announced Tenable Ventures, a corporate investment program.

January 26, 2023

Ubuntu Pro, Canonical’s comprehensive subscription for secure open source and compliance, is now generally available.