In today’s business world, organizations not only need to connect all their cloud applications and services, they need to do so seamlessly. Companies now rely on CRMs, ERPs, collaboration tools, and lots of industry-specific tools, but without integration these tools can become data silos of information that stifle growth and productivity.

Cloud-based integration helps an organization connect disparate cloud and on-premises systems to create an implicit ecosystem. This problematic evaporates, allowing an organization to improve efficiency, maintain data accuracy, and innovate quickly.

What is Cloud-Based System Integration?

Putting it simply, cloud-based integration connects disparate cloud applications, SaaS products, and on-premises systems so that they efficiently share data and communicate. Once all variables are taken into consideration, cloud-based integration allows the flow of information to securely move from tool to tool (I.E., CRMs, accounting software, HR systems, e-commerce platforms etc) without manual intervention.

Historically, organizations used to use point-to-point integration to connect one system to another system. While that may work for a couple different applications, it would become sloppy and costly with additional connections. Cloud-based integration leverages technologies such as APIs and iPaaS (Integration Platform as a Service) solutions which can link an array of systems faster, safer, and in a way that can scale.

Why Does Cloud Integration Matter?

It’s easy to see how, with more remote work, more digital services, and even higher expectations from customers, companies can’t afford to have any spaces where systems disconnect. Delays, duplicate entry, and manual effort are all time-sucks that reduce productivity potential and can cause human errors, which can affect customer experience.

Cloud-based integration helps keep data flowing between one or more platforms in real time. For example, if a customer placed an order online, an integrated system could automatically update the sales tool, update the inventory, notify accounting (finance) and kick-off the shipping – all connected so that someone didn’t need to update three different systems! And much better, faster, without human error, and all teams have access to the same data that is up to date.

Key Benefits of Cloud-based System Integration

1. Improved Efficiency and Automation

Integrated systems provide automation of repetitive, manual, and mundane tasks. Each time there is data entered once, data flows through all connected applications with no human duplication and ensures that there is no change. Employees can spend less time on manual tasks and more time thinking strategically.

2. Improved Data Visibility and Accuracy

Once all systems are integrated in the same cloud platform, organizations are able to have a single source of truth. Having one record for each data point reduces errors, stops conflicting records, and allows for better reporting and analytics. More importantly, the leaders of the organization see live, real-time data that can help them make better decisions faster.

3. Rapid Innovation

Integrated cloud solutions allow organizations to investigate new technologies, such as AI, IoT, and big data analytics. With continuous data flow, teams can produce smarter products, personalize services for customers, and respond swiftly to customer demand changes.

4. Cost Efficiency

Decreasing operating costs by automating routine procedures, reducing mistakes, and optimizing workflows. Most of the time, cloud-integrated solutions require far fewer resources to maintain than a corresponding complicated point-to-point methods.

5. Increased Collaboration

Individuals often collaborate better when systems communicate with one another. Integrated cloud applications deliver a shared repository for being updated with real-time data, and readily available information eliminates some of the opportunity for miscommunication as people collaborate across different departments.

Best Practices for Integration a Cloud-Based System

Putting together a solid cloud integration strategy will require some planning. Here are some best practices considered:

1. Clearly Define Your Goals And Requirements

The first step is to begin ascertaining what you want to connect and for what purpose. What data will flow between which systems? What are the business outcomes you want to achieve; quicker order turnaround, faster reporting, or a better customer experience?Clarity on your objectives will help you determine the best integration method and tools.

2. API-First

Most cloud applications today will support integrations with APIs. APIs are an integral and flexible part of integrating on secure systems. If you consider the APIs first when implementing software, you will make your life much easier connecting systems today and more importantly in the future.

3. Use an iPaaS Solution

When available, integrate using an iPaaS (Integration Platform as a Service). An iPaaS is a hub to connect integrations between multiple systems. They also will come with pre-built connectors to common consumer-facing applications. Drag and drop workflow, realtime monitoring, and scalability can all be managed in an iPaaS without worrying about heavy coding. For most organizations looking to reduce the technical burden of managing integrations and making them less costly overall, and iPaaS can be a good option for enabling complex integrations.

4. Always Consider Data Security

Anytime data is shared between systems, it has to be secured. Encrypt data in transit, secure authentication protocols, and role-based access control. In addition, ensure your integrations are in compliance with any industry or regional regulations, such as GDPR or HIPAA.

5. Test Before You Go Live… and Monitor Continuously

You cannot skip testing. Before any integration goes live, you must test the data flows to catch any errors, missing fields, and matching issues. Once live, for every integrated workflow, you will want to monitor your integrations consistently for any potential bottlenecks, failures, or security issues – and fix those before they become bigger issues.

6. Plan for Growth and Flexibility

What your integration needs are today may be very different in a year. Plan your architecture for future scale as you add applications, add teams, or have more customers. The goal is to ultimately future-proof your investment and not have to start over every time you scale.

7. Train Teams and Communicate Changes

Integrating systems typically change the way people do their work. Ensure that everyone understands what moves through their workflow, where they can find information, and who they can contact if something doesn’t work as they expect. Good change management will reduce frustration and build trust in the new workflow.

Watch for these Common Challenges

Cloud integration has its benefits, but there are some challenges you need to be aware of:

• Legacy Systems: Older, on-premises software may not have modern integration capabilities such as APIs. Connecting these systems may require custom development or middleware.
• Vendor Lock-In: Moving too far into a specific vendor’s proprietary cloud integration tools could lead to problems if you try to bring in another cloud vendor.
• Data Mapping Complexity: Systems may be utilizing distinct data formats which could slow your integration strategy down if careful planning is not done on mapping data and transforming it.
• Scope and Cost Overflow: If you lack proper planning, your integrations will be constrained by budget and increase cost and scope. Always ensure your integration plan aligns with both your financial and operational goals.

In Conclusion

Cloud system integration has ceased to be optional for today’s business — cloud integration has become a business competitive necessity. Organizations that are able to integrate their cloud apps with on-premises systems can provide seamless operational activities internally and provide more data consistency, as well as opportunitiy to innovate in the future.

By utilizing the best practices already identified in the context of iPaaS, API first development, and security considerations, organizations should be able to maximize the benefits of their cloud strategies, while maintaining flexibility in a rapidly evolving digital environment.