iPaaS examples and use cases

Some iPaaS platforms are geared toward specific industries, such as healthcare, manufacturing, e-commerce or finance. Others address particular use cases, such as real-time data synchronization, API lifecycle management and legacy system modernization. Before exploring those use cases, it’s important to understand how iPaaS works, and how it differs from other integration approaches.

iPaaS is a cloud-native, self-service software suite that organizations can use to fulfill their integration needs. iPaaS facilitates and manages connections between services so that even applications that use different protocols or data formats can communicate, overcoming the misalignments and incompatibilities that would otherwise interrupt data flows.

Enterprises have historically designed app integrations on-premises, using specialized middleware, such as message brokers or enterprise service buses (ESBs). But these solutions can become tightly coupled and difficult to maintain, especially as organizations scale up and add dozens or hundreds of new services.

iPaaS solutions are becoming a popular alternative because they offer a greater degree of flexibility and scalability compared to older, point-to-point integration flows, where two services communicate directly through a custom-built connector. As cloud-based solutions, iPaaS platforms align with the needs of today’s enterprises: they enable integration across containerized microservices, serverless, edge and other modern, multi-cloud environments.

iPaaS adoption is on the rise: the industry grew by an estimated 26% in 2025, according to Fortune Business Insights. One reason is that, besides handling technical tasks such as protocol transformation, authentication, logging and data synchronization, iPaaS solutions also offer complex management tools and customization so that teams can design and monitor their own data orchestration patterns and automations. Many iPaaS solutions also incorporate machine learning, Internet of Things (IoT), advanced analytics and other modern innovations to optimize connectivity.

iPaaS follows the software as a service (SaaS) model: iPaaS vendors charge organizations on a monthly or annual basis, with prices varying based on usage tiers or feature packages. Providers might also bundle enterprise resource planning (ERP), customer relationship management (CRM), platform as a service (PaaS) and SaaS applications alongside their integration solutions. iPaaS adoption is most common among larger enterprises, where complex integrations are difficult to manage through custom, manual connectors alone.

iPaaS integration builds upon the foundation of enterprise application integration (EAI), a traditional discipline that connects CRM, finance, analytics, ERP systems and other business applications through custom APIs or middleware. EAI was first developed in the 1990s to facilitate interactions between on-premises systems. Today, many EAI platforms can also manage hybrid and multi-cloud integrations. Developers consider iPaaS to be a modern, cloud-native variant of EAI.

In practice, organizations often think of EAI and iPaaS as complementary systems: IT teams might use an internal EAI platform to handle core integration processes (for example, sending performance data from a legacy server to a data warehouse), while delegating cloud-based integrations, such as synchronizations between third-party SaaS applications, to an iPaaS platform.

iPaaS platforms can be configured to streamline a wide array of business operations, from high-level data governance to granular API management and process automation. Common examples of iPaaS use cases include:

iPaaS platforms enable developers to use pre-built connectors or no-code tools to create automations that involve multiple services. For example, an enterprise might build an automation to streamline employee onboarding: When the HR department adds a new hire to the payroll, this event automatically initiates workflows to deliver onboarding documents, training materials, login credentials and necessary equipment to the employee.

The iPaaS platform orchestrates these steps behind the scenes, enabling each relevant service to complete its assigned task in a precise order. Teams can also make changes—for example, rolling out updated training materials—without needing to reconfigure the entire automation.

In less mature integration models, information is often isolated within individual systems. These data silos can make it difficult for teams to see how behaviors in one service affect related applications. iPaaS platforms, meanwhile, can use machine learning to identify patterns and detect anomalies across various systems, building a more holistic view of customer behavior, operational efficiency and network performance.

Some iPaaS platforms feature built-in AIOps functions, including tools that can proactively forecast misalignments, API misconfigurations and unusual usage patterns before these problems result in downtime, security risks or a negative customer experience. AI-powered data-mapping tools, meanwhile, can suggest more efficient and secure information routes, helping organizations optimize data pipelines.

In modern contexts, business systems are often highly dependent on each other: Data from one system might directly inform how another should behave, and even small misalignments or delays can disrupt critical workflows. iPaaS offers teams the ability to quickly design and deploy synchronized automations, where events in one system automatically trigger actions in another.

For example, an e-commerce platform might sync Salesforce customer data with an ERP, which handles inventory management and invoicing, so that fulfillment records and financial logs remain up to date. Meanwhile, the ERP might send relevant data—such as billing status and order history—back to the CRM so that sales teams have a comprehensive view of customer behavior.

iPaaS platforms can also transform and funnel non-essential data to centralized data warehouses or data lakes for storage, preservation and further analysis. Teams can design and monitor data exchanges through self-service interfaces and adjust these automations as their needs change.

iPaaS platforms often feature a management plane, which spans services and applications, giving organizations a holistic view of data flows. Dashboards help teams monitor performance, spot inefficiencies and identify the source of misalignments, broken syncs and other errors. The unified control plane also helps organizations maintain observability through the collection and analysis of logs, traces and other metrics.

Governance features, meanwhile, help organizations enforce rate limits, maintain regulatory compliance and manage authentication and authorization policies. Finally, iPaaS platforms might include API management tools, such as API gateways and developer portals, so that stakeholders can seamlessly discover, deploy, update and manage APIs throughout their lifecycles.

iPaaS platforms support event integration, where event brokers send notifications to relevant services each time a notable event (such as an anomalous sensor reading or a new login) takes place. This approach supports asynchronous data processing, where data is stored securely in an event queue until the receiving service is ready to process it.

Modern platforms might also support event enrichment and transformation, where raw data is filtered, condensed and converted to readable formats so that only relevant information is sent downstream. Many iPaaS platforms also feature batch processing—when high-volume data is sent in packets at pre-defined intervals to improve efficiency—an approach traditionally associated with extract, transform, load (ETL) applications.

While iPaaS platforms are often used for data integration inside companies, they can also help facilitate secure connections with external partners during file and data transfers, which can be especially vulnerable to cyberattacks.

iPaaS solutions can use encryption, auditing and tokenization (converting sensitive information to secure formats) to help ensure data security during transit. iPaaS platforms might also support electronic data interchange (EDI) standards to help organizations maintain compliance with regulations such as HIPAA or GDPR while sharing invoices, order and other documents.

Modern iPaaS platforms can orchestrate data from IoT networks, where internet-connected devices are outfitted with smart sensors for precise monitoring and real-time performance optimization. They can also integrate with edge computing systems, distributed IT architectures that process and store data close to the sources where the data originates.

This approach can help ensure efficiency and stable performance. Instead of deploying separate systems for IoT, edge and on premises, iPaaS enables IT teams to manage these systems through a unified layer, enabling them to design workflows that span each of these environments.

For many organizations, migrating or replacing legacy systems can be technically challenging, time consuming and expensive, especially when critical applications must be taken offline during the transition period. iPaaS platforms can connect legacy services to modern tools through APIs and transform older formats so they are compatible with modern systems. This approach enables enterprises to extend the lifecycle of legacy systems and preserve historical data so that it can be used for advanced analytics, AI systems and other modern applications.

Some integration platforms offer advanced testing features, such as step debugging, which allows teams to temporarily pause a data transfer to isolate the cause of an error. Other testing-related features include code coverage analysis, which assesses code quality and identifies misalignments and inefficiencies, and validation checking, which prevents users from inputting inconsistent or invalid data.

While most enterprises can benefit from enterprise integration, iPaaS is especially popular in the IT and telecom, healthcare, manufacturing and BFSI (banking, financial services and insurance) industries, according to Fortune Business Insights. Banking was the top industry for iPaaS usage in 2024—while healthcare is expected to be the fastest-growing industry in the years ahead.

In healthcare settings, iPaaS can help integrate patient data, billing, scheduling and lab systems. Integrated online portals can provide a unified endpoint for both patients and doctors to access important information while helping ensure compliance with privacy standards and regulations, such as HIPAA in the US.

iPaaS solutions can automate routine financial reporting processes, cutting down on tedious manual work and helping ensure accuracy. By centralizing oversight of system-wide data flows, iPaaS platforms enable banking, finance and insurance companies to maintain compliance with regulatory frameworks, such as anti-money laundering (AML), know your customer (KYC), and the Truth in Lending Act (TILA). Integration between payment processing, fraud detection, digital investing and online banking services can also improve operational efficiency and security.

IT companies use iPaaS solutions to connect cloud-based applications with hybrid and on-premises services, visualize network connectivity and data flows, automate support ticket and error report routing and analyze metrics to improve performance and security.

iPaaS platforms can help automotive, electronics, consumer goods and other manufacturing-focused organizations automate supply chain processes, optimize factory and shipping workflows and use predictive maintenance to extend machine lifecycles. iPaaS solutions can also accelerate Industry 4.0 strategies, which focus on incorporating new technologies, such as machine learning, IoT and cloud services, into production facility operations.

Organizations often invest in iPaaS solutions as part of a larger digital transformation strategy, where modern technologies and business processes help optimize workflows and improve decision-making. A 2024 Forrester study found that companies achieved a 30% increase in developer efficiency and 345% return on investment (ROI) over three years after adopting an integration suite. Benefits include:

iPaaS enables organizations to quickly build and manage integrations across on-premises, multi-cloud and hybrid environments, even when services are hosted by different vendors or use distinct operating systems or architectural frameworks. iPaaS platforms can transform data formats so that services can communicate with each other, despite using different programming languages or protocols. Teams can automate workflows to eliminate repetitive, manual processes, reducing human error and giving them more time for higher-level work.

Some iPaaS platforms are known for their ease of use, featuring pre-built connectors, which give organizations a head start when creating new automations or integrations. For example, enterprises can connect an inventory management platform with Slack so that relevant teams can be notified each time a product is out of stock.

Low-code or no-code templates enable teams to quickly design custom integrations without needing extensive programming expertise. If an organization uses a service that the iPaaS doesn’t already support, it can often build an integration using these templates. Integration tools can greatly improve team agility: instead of waiting days or weeks for IT to build a custom integration, teams can create or add one themselves in a matter of minutes or hours through an accessible interface.

Integration services often include a control plane so that teams can manage data pipelines, access controls and authentication from a centralized location. This feature helps prevent zombie or rogue APIs—where APIs are either abandoned or used without IT governance and oversight—because teams can monitor connections through a unified management plane.

• Improved scalability: Organizations can quickly add instances to improve performance or scale back resources to save costs during off-peak hours. Auto scaling enables organizations to adjust resource availability in real time based on current demand.
  
  
• Decoupled applications: Applications are loosely coupled—they operate independently and do not need to know how other services are configured to interact with them—improving their durability and scalability. Errors in one service are less likely to affect neighboring applications, and teams can maintain their independence while benefiting from services and data from across the ecosystem.
  
  
• Increased agility: Teams can add services and instances as needed and can incorporate new technologies with low- or no-code connectors. With support for real-time data exchange, iPaaS solutions can also help teams quickly respond to unexpected market conditions, user feedback and performance metrics.

As organizations race to adopt new services to address rapidly changing business needs, they often face SaaS sprawl, when a proliferation of applications makes it difficult to keep services organized and secure. iPaaS solutions can help address this problem; teams can use an iPaaS platform to spot and eliminate redundant applications, manage connections through a central control plane, and discover and use services in the ecosystem.

iPaaS solutions might also help organizations make better use of their data, especially given that an estimated 90% of enterprise data is unstructured, according to a 2023 International Data Corporation report. iPaaS solutions can employ natural language processing to help enterprises structure and analyze previously unexamined data. One potential use case is feeding data to AI models during the training phase to create more powerful generative systems. iPaaS platforms might also accelerate AI agent adoption, enabling agents to tackle increasingly complex tasks without human intervention.

Finally, AI might also help organizations build more complex integration schemes and no-code connectors, helping teams access connected data and services without needing extensive training.