Canonical Data Model vs iPaaS: What Actually Works for Scalable Enterprise Integration?

An enterprise is often packed with data, which is fragmented and separated across multiple environments and sources. This can bring up multiple challenges for organizations as they scale up their business. The need that is emerging out of enterprises is to integrate the data and bring it together onto a single platform.  

A new joint survey by Mulesoft and Deloitte stated that companies now use an average of 976 applications, which is 133 apps more than a year ago. This further highlights the urgent need for companies to integrate their application. Through enterprise integration, applications become more accessible and useful across the organization. This will further help companies scale with security and control. 

The integration process would have previously caused a lot of major headaches. This is mainly because of the number of challenges that need to be addressed. This includes a high volume of disparate systems security, compliance requirements, handling multiple use cases, etc. However, with modern integration solutions like iPaaS, these challenges can be easily resolved. 

iPaaS has been leading the digital transformation journey in multiple countries around the globe. According to IDC reports, spending on digital transformation is forecasted to hit 3.9 trillion USD by 2027. Also, US spending on digital transformation accounts for 35.8% of global spending and iPaaS integration has a major contribution in that figure. 

According to a report by McKinsey, organizations that effectively leverage data integration see a 12% increase in profit margins. Companies are also able to experience enhanced ROI. So, here we are going to take you through the various ways in which you can integrate the applications in your environment. We will also provide you with an in-depth idea of the difference between canonical data model and iPaaS. 

What is a Canonical Data Model (CDM)? 

Canonical data models are a type of data models that present data entities and relationships in the simplest form in order to integrate various processes across systems and databases in the environment. It is a more straightforward approach to enterprise integration. Here’s a more standardized definition of CDM: 

A CDM is also referred to as a common data model, as it uses a common language to model data. The purpose of a CDM is to allow an enterprise to create and distribute a common definition of the entire data unit. This allows for easier data integration between the systems. 

The CDM approach can include any technology the enterprise uses:  

• Enterprise Service Management (ESM) 
• Business/ performance Process Management (BPM) 
• Service-oriented architecture (SOA) 

Benefits involve enhanced logic maintenance, improved translation maintenance, and fewer translations. However, before choosing the canonical data model, you need to know more about iPaaS vs canonical data model for enterprise integration. 

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What is iPaaS (Integration Platform as a Service)? 

iPaaS provides cloud-based tools to connect disparate applications quickly and securely. 

iPaaS has emerged as the most suitable integration solution for businesses from all across the world, and more and more companies are trying to shift to iPaaS from other integration solutions. With iPaaS, companies can bring together systems from different IT environments to a single platform to enjoy enhanced benefits. 

As per Gartner reports, the integration platform as a service (iPaaS) market grew by 30.7% to 7.7 billion USD in 2023 from 5.9 billion USD in 2022. This value has been continuously on the rise since then. 

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Difference Between Canonical Data Model and iPaaS -> Who Is the Winner? 

Here’s a table of comparison between the difference between canonical data model and iPaaS:  

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Why Do Canonical Data Models Fail in Large-Scale Integrations? 

Although the canonical data model may present itself to be a suitable option for small-scale integration requirements, for large-scale enterprises, implementing such models is not practical.  

That’s where the difference between canonical data model and iPaaS lies. Designing a canonical data model results in a large data model with full sets of multiple optional attributes and very few mandatory attributes. 

Even though this model was primarily designed to ease out the integration process, large-scale integration can complicate it to a whole new level. The model may create a lot of frustrations among the users because of its inherent complexities in terms of management and utilization.  

Also, instead of being coupled to different data formats, you will become tightly coupled to a common data format that will be used by the entire IT landscape and is also subject to frequent changes. 

So now that you have an answer to the question, “Why canonical data models fail in large-scale integrations?”, let’s look at some of the modern integration alternatives. 

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Alternatives to Canonical Data Models in Modern Integration: 

Here are some of the alternatives to canonical data model in integration that you can opt for: 

Application Programming Interfaces (API) integration: 

This method makes use of Application Programming Interfaces (APIs) to allow communication between the systems. The integration is done through standardized interfaces. This form of integration works by linking two different platforms together by following a specific set of protocols. Once integrated, the platforms can send data back and forth through the APIs. 

Benefits of API integration: 

• Flexibility and reusability. 
• Simplified integration process. 
• Easier connection between two external services. 
• Scalable and adaptable to future needs. 
• Enhanced scope of innovation. 

Web hooks and event-driven integration: 

This integration method is based on systems reacting to events that occur in other systems. This occurs through configured webhooks or event listeners. Unlike the traditional polling approach, webhooks automatically send out information to the systems when certain events have happened. 

Benefits of webhook integration:  

• Real-time updates based on events. 
• Loose coupling between the systems. 
• Reduced load by sending data when required. 
• Scalable for several events. 

Microservices: 

Microservices allow for continuous integration and continuous delivery. This makes it easy for companies to try out new ideas and rollback in case something doesn’t work. Microservices are an architectural approach to developing different applications as a small collection of independent services that communicate with each other. The integration is composed of many discrete network-connected components that allow the data to communicate between the systems. 

According to the research conducted by Statista, 81.5% of companies already use microservices in their business environment. Another 17.5% of businesses plan to switch to this integration type. 

Benefits of microservices:  

• Enhanced scalability. 
• Improved fault isolation. 
• Faster time-to-market. 
• Easy deployment. 

iPaaS integration: 

iPaaS is a cloud-based platform that offers multiple tools and functionalities for building, running, and managing interactions between different systems. It is the easiest and most effective way of integrating complex scenarios. 

Benefits of iPaaS:  

• Reduced technical complexity. 
• Faster speed of implementation. 
• Enhanced scalability. 
• Pre-configured connections. 
• User-friendly interfaces. 
• Continuous improvements and upgrades. 

Explore the various features of iPaaS -> Talk to the experts now! 

Which Method Of Integration Should You Choose? Use Cases and Recommendations 

With so many different integration options available to you, you must be confused regarding which exact type of integration you should choose. Well, here we are going to take you through some of the use cases of popular alternatives to canonical data model in integration: 

API Integration: 

API integration is ideal for companies that are willing to build a future-proof IT infrastructure. It is vital for businesses that are looking forward to integrating cloud services. It is also suitable for companies that wish to offer functionalities to external partners. 

Axis Bank, one of the global financial institutes, made use of IBM API Connect to transform the digital banking experience for the customers. Click here to know the complete case study! 

Webhooks: 

This is ideal for real-time systems where fast data transfer is required. It is also common in e-commerce systems that require reacting to orders and inventory systems. Iot systems also make use of this integration. 

Microservices: 

Microservices are used in situations where real-time data processing is required. It is also an ideal choice for applications that deal with big data and AI/ML technology. You can also make use of microservices for refactoring legacy applications. 

P.S: Top companies like Netflix, Amazon, and Uber are already using microservices in their environment. 

iPaaS integration: 

It is particularly suitable for companies that wish to cut IT infrastructure costs. It is ideal for businesses that are looking forward to integrating cloud-based services quickly. It also positions itself to be suitable for companies undergoing rapid digital transformation. 

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APPSeCONNECT: The iPaaS Provider Trusted by 100+ Brands 

APPSeCONNECT stands out as the No. 1 iPaaS solution provider. The company is known for integrating CRM, ERP, or E-Commerce applications in the most strategic manner. Through its enhanced integration solutions, APPSeCONNECT can help drive strategic business growth. APPSeCONNECT’s iPaaS solution also provides a clear understanding of “Why is a canonical data model outdated in modern integration?” 

APPSeCONNECT’s enhanced set of features:  

• Streamlined workflows and automation. 
• Pre-configure templates. 
• 100+ ready-to-use connectors. 
• 1,000+ integration endpoints. 
• Easy setup options. 
• Built-in functionalities. Post implementation customer support. 
• Unparalleled scalability and adaptability. 
• Robust, user-friendly platform. 

APPSeCONNECT is also known to serve multiple industries. It comes with endless customization options through which you can further customize your integrations as per your exact business requirements. 

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Want to know more about why you should choose APPSeCONNECT over other leading iPaaS providers? Here’s a table of comparison that will help you to make your choice:  

Although companies like MuleSoft and Jitterbit do show some promising features, APPSeCONNECT’s enhanced set of features, coupled with flexible pricing options, makes it an ideal choice for mid-scale companies looking forward to reaping the benefits of iPaaS integration. 

MuleSoft often requires expensive specialist teams to maintain integrations which is not the case in APPSeCONNECT. Similarly, Workato can have a steep learning curve for non-technical users. This isn’t the problem with APPSeCONNECT. The platform comes with user-friendly features which are easy to master. 

APPSeCONNECT is also one of the best alternatives to canonical data model in integration. 

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APPSeCONNECT’s Enhanced Compliance and Security Features: 

APPSeCONNECT’s enhanced adherence to compliance and security features makes it an ideal solution for companies that are looking forward to integrating the applications in the environment without having to deal with any kind of compliance issues. 

APPSeCONNECT’s services are: 

 ✅ ISO 27001 certified 

✅ SOC 2 (Type II) certified 

✅ GDPR Compliant 

APPSeCONNECT also follows various enhanced security measures while offering its services, like:  

• SSO (SAML) 
• RBAC (Role-Based Access Control) 
• SCIM provisioning 
• 2FA (Two-Factor Authentication) 

According to a Persona research, 62% of UK citizens feel more at ease about sharing their data as a result of GDPR. With APPSeCONNECT, they can ensure that their GDPR requirements are met. APPSeCONNECT also helps you deal with ross-border data transfer complexities which have increased post-Brexit. 

So, with APPSeCONNECT, you can bring together the various systems in your environment without having to worry about compliance and security requirements. 

APPSeCONNECT vs Jitterbit -> Here’s all that you need to know. 

Learn more about how APPSeCONNECT helped businesses revolutionize their operations through iPaaS integration: 

Case Study 1: Blue Q Transformed Its E-Commerce and ERP Operations With APPSeCONNECT 

Blue Q, which happens to be an extremely reputable brand based in Pittsfield, Massachusetts, has been manufacturing a wide range of quirky, high-quality products since 1988. The brand is known for its humor-infused products like bags, socks, towels, and other unique gifts. 

The Challenges Faced: With growing popularity and demand for Blue Q products, the company started to face challenges managing its business operations. The company was experiencing difficulties with its previous integration platform, which connected Shopify E-Commerce with MS Dynamics. The company’s outdated connectors failed to sync data between the two platforms. This resulted in limited functionalities and unreliable performance. 

The APPSeCONNECT Solution: Through research and consideration, Blue Q reached out to APPSeCONNECT to integrate Shopify and MS Dynamics. The integration experts at APPSeCONNECT offered Blue Q a highly scalable and comprehensive integration platform through which it was able to meet all its business needs. The company’s business profitability grew by 50%. 

Learn more about how APPSeCONNECT helped Blue Q maximize business profitability by clicking here! 

Case Study 2: APPSeCONNECT’s Top-Notch Integration Platform Allowed Renegade Brewery to Achieve 100% ROI 

Renegade Brewery is known for its sustainability and its idea of producing local beer. The company made use of APPSeCONNECT’s integration solution to automate its various operations and enhance business efficiency. 

The Challenges Faced: Before implementing iPaaS integration, Renegade Brewery was struggling with a manual and time-consuming process of accounting for stocks, inventory movement, web sales, and taxes across 20 to 30 orders daily, coming up to almost 200 orders a week. This caused its business to slow down. The company was also facing challenges meeting the expectations of the customers. 

The APPSeCONNECT Solution: Renegade Brewery reached out to APPSeCONNECT in order to integrate SAP Business One with WooCommerce. APPSeCONNECT’s custom integration solution helped Renegade Brewery in fulfilling its objective of automating its business operations. The company was able to obtain real-time data sync of web sales. Inventory management and tax calculations became easier, and it was also able to cut down on manual labor by 30%. The integration cost was also reduced by 45%. 

Click here to know more about how APPSeCONNECT helped Renegade Brewery transform its operations. 

Hear What People Have to Say About APPSeCONNECT’s Services: 

APPSeCONNECT has an overall rating of 4.7 on Capterra, which makes it one of the top alternatives to canonical data model in integration. Here’s what the clients have to say about the company’s services: 

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The Future of Enterprise Integration: Things to Watch Out for 

Enterprise integration has turned out to be an extremely crucial aspect of modern business operations that deal with diverse applications and data sources. As technology continues to evolve at an unprecedented rate, the landscape of enterprise integration is also experiencing transformative evolution. More people are also becoming aware of the difference between canonical data model and iPaaS. 

Over time, we will be able to see multiple advancements in enterprise integration. Among growing trends and innovation, the seamless integration of Iot has emerged as a driving force. It has been reinventing the way organisations communicate with multiple devices. The demand for hybrid integration platforms has also been on the rise in the past few years. 

AI/ML-based technologies have also started to gain pace. They can optimize data by allowing seamless communications between diverse platforms and also predict patterns for decision-making. The low-code and no-code platforms are also shaping the future of enterprise integration by democratizing application development. These platforms allow users with different levels of technical expertise to create modern enterprise solutions.  

Wrapping Up: 

So, are you ready to bring the different applications in your environment onto the same platform? Willing to experience the APPSeCONNECT difference? Well then, you may consider reaching out to the integration experts at APPSeCONNECT and get your journey started today itself. 

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