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iPaaS vs PaaS: What You Need to Know And More | ReadWrite



iPaaS vs PaaS: What You Need to Know And More | ReadWrite

The variety of software we use daily can feel endless and overwhelming. It’s inevitable that the adoption of additional software, widgets, and plugins to complement our core tools with business growth. This can quickly lead to us getting inundated by data silos, disjointed information, additional expenses, and other problems that negatively affect the fluidity and efficiency of our business operations.

From using video conferencing software to conducting daily stand-up meetings to document management software and CRMs, it takes many tools to successfully manage day-to-day business operations.

In fact, the average company uses 137 unique SaaS apps and incurs a total SaaS spend of $4.16m a year.

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Fortunately, there’s a standardized solution on the market, and it comes in the form of iPaaS.

Integration platform as a service (iPaaS) allows organizations to integrate disjointed systems, unifying independent applications to create a seamless internal and external experience. This is something that is extremely difficult to achieve with traditional SaaS (software as a service) implementation.

iPaaS vs PaaS

Before we get into why you should implement iPaaS into your business process improvement strategy, it’s helpful to discuss platform as a service (PaaS) first.

Despite their similar terminology, iPaaS and PaaS are completely different in terms of functionality.

What is PaaS?

PaaS is a cloud-based platform where organizations are provided with a complete set of tools to develop, run, and manage their web-based applications. All necessary hardware and software — the network, servers, operating system, databases, and storage are hosted on the provider’s infrastructure.

It is an effective solution to the restrictiveness and expense of an on-premises platform because it allows developers to devote more time to creative aspects than the laboring technicalities of building an infrastructure from scratch.

What is iPaaS?

iPaaS is a cloud-based integration solution that allows organizations to automate integrating software applications, data, and services across on-premises, public, and private cloud environments. A modern enterprise iPaaS is usually billed on a monthly subscription fee or pay-by-use rate. However, like PaaS, offers a complete set of features for your specific integration goals.

iPaaS makes a great supplement for businesses using PaaS and SaaS. It provides users with the integration capabilities needed to unite and streamline their different tools.

Benefits of iPaaS

In many cases, iPaaS provides the same benefits as PaaS, but does so on a broader scale. Here are some of the benefits of iPaaS.


Implementing an iPaaS solution allows greater flexibility because you can adapt and innovate as your integration needs grow more complex. In addition, iPaaS supports hundreds of applications and endless connections, enabling you to scale on demand without having to implement expensive and restrictive third-party software.

Eliminates data silos

Of course, as your business scales and your volume of data grows, data silos can become a serious problem. If your business is made up of segregated systems, it can lack visibility across departments, negatively impacting the fluidity of internal efficiency and customer satisfaction.

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Implementing a third-party integration software can result in further disorganization as you acquire more segregated tools. However, utilizing iPaaS alongside collaboration software means that everything is integrated and managed from one centralized hub, enabling a much more streamlined process across departments.

Easy to use

At its simplest, iPaaS requires little to no coding ability, meaning urgent problems can often be fixed without escalation. This lessens the strain on developers and makes an ideal solution for citizen integrators.


Traditional custom integration methods like enterprise service business (ESB) and enterprise application integration (EAI) can be costly workarounds. iPaaS eliminates the need to employ multiple third-party tools to a model that is already convoluted with software.

Multi-tenancy capabilities

Generally, each tenant requires their own instance to connect to the software. For example, each person on a phone call or a conference call dial-in requires their own connection. However, the iPaaS solution has multi-tenancy capabilities, meaning it creates shared instances and eliminates overload on the system.


Accessing and managing all connections from one centralized hub is a huge advantage of iPaaS, eliminating the restrictiveness of singular departments being responsible for different connections.

Improves security and compliance

Inevitably, every cloud environment is at risk of security threats. However, iPaaS not only provides built-in fraud detectors and intruder alerts, but the centralized system makes it much easier for businesses to identify and resolve these threats.

Real-time processing

With real-time data connections and processing speeds, iPaaS eliminates the possibility of delays in access and up-to-date information across departments.

Increased efficiency

It goes without saying that iPaaS greatly improves workplace productivity and efficiency. Not only is workflow streamlined by automation and centralization, but real-time processing and ease of use make iPaaS an efficient solution for daily business operations.

Challenges of iPaaS

Despite all the benefits, it’s necessary to touch on the potential challenges of implementing iPaaS.

Higher risk of human error

As previously mentioned, citizen integrators can successfully use iPaaS for integration purposes. However, the user-friendliness of iPaaS can be overestimated. Many integrations require specific technical knowledge that, if done incorrectly, can create data islands and other problems that negatively impact the overall structure of operations.

Additionally, there are significant risks when it comes to data security and compliance.

Industries like law, healthcare, and finance typically work with many applications that handle sensitive data over the cloud (virtual fax applications are a good example of this). As a result, serious problems can arise when a user who is not versed in regulatory compliance changes an iPaaS system.

In fact, it is business users themselves who pose the highest risk to cloud security.

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Fortunately, many modern iPaaS platforms come with built-in security and compliance capabilities, including SOC 2 Type 2 and GDPR.

Confusingly vast array of options

There are a huge number of iPaaS providers on the market. Comparison and tech websites are prone to listing providers who are either ESB/iPaaS hybrids or fully traditional integration providers (such as ELT) who have supplemented their solutions with SaaS connectivity.

Along with the fact that there is no universal, base-level set of features and functionalities for iPaaS, trying to find the right provider for your specific needs can become a confusing and laborious task.

iPaaS enterprise use cases

iPaaS has an extensive range of integrations to suit many different business models. Here are three common iPaaS uses.

Data integration

Transferring and synchronizing data from one system to another is particularly beneficial for companies that handle large amounts of data across departments. Considering this process used to happen in batches, iPaaS offers a time-efficient solution. For example, data obtained from call logs can be transferred in real-time to other applications, streamlining customer service and eliminating frustrating data silos.

B2B integration

If you have a large number of external partners or providers, iPaaS negates the need to write code based on APIs. It also allows you to securely monitor data flows and enable better security standards.

Application-to-application integration

iPaaS allows you to integrate independent applications, data, and systems, enabling them to work together across on-premises or cloud environments. Data can be gathered from any integrated system and delivered automatically to an end-user platform.


Determining your organization’s specific needs and goals is a crucial first step to iPaaS implementation. For example, whether you focus on integrating internal business data for workflow efficiency or integrating communication or CCaaS platforms to improve customer service, it’s vital to identify where your data lies and whether those applications support integration.

As we dive deeper into cloud dependency and uniformity within internal and external processes, iPaaS has become a staple in business operations.

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Fintech Kennek raises $12.5M seed round to digitize lending



Google eyed for $2 billion Anthropic deal after major Amazon play

London-based fintech startup Kennek has raised $12.5 million in seed funding to expand its lending operating system.

According to an Oct. 10 report, the round was led by HV Capital and included participation from Dutch Founders Fund, AlbionVC, FFVC, Plug & Play Ventures, and Syndicate One. Kennek offers software-as-a-service tools to help non-bank lenders streamline their operations using open banking, open finance, and payments.

The platform aims to automate time-consuming manual tasks and consolidate fragmented data to simplify lending. Xavier De Pauw, founder of Kennek said:

“Until kennek, lenders had to devote countless hours to menial operational tasks and deal with jumbled and hard-coded data – which makes every other part of lending a headache. As former lenders ourselves, we lived and breathed these frustrations, and built kennek to make them a thing of the past.”

The company said the latest funding round was oversubscribed and closed quickly despite the challenging fundraising environment. The new capital will be used to expand Kennek’s engineering team and strengthen its market position in the UK while exploring expansion into other European markets. Barbod Namini, Partner at lead investor HV Capital, commented on the investment:

“Kennek has developed an ambitious and genuinely unique proposition which we think can be the foundation of the entire alternative lending space. […] It is a complicated market and a solution that brings together all information and stakeholders onto a single platform is highly compelling for both lenders & the ecosystem as a whole.”

The fintech lending space has grown rapidly in recent years, but many lenders still rely on legacy systems and manual processes that limit efficiency and scalability. Kennek aims to leverage open banking and data integration to provide lenders with a more streamlined, automated lending experience.

The seed funding will allow the London-based startup to continue developing its platform and expanding its team to meet demand from non-bank lenders looking to digitize operations. Kennek’s focus on the UK and Europe also comes amid rising adoption of open banking and open finance in the regions.

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Radek Zielinski

Radek Zielinski is an experienced technology and financial journalist with a passion for cybersecurity and futurology.

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Fortune 500’s race for generative AI breakthroughs



Deanna Ritchie

As excitement around generative AI grows, Fortune 500 companies, including Goldman Sachs, are carefully examining the possible applications of this technology. A recent survey of U.S. executives indicated that 60% believe generative AI will substantially impact their businesses in the long term. However, they anticipate a one to two-year timeframe before implementing their initial solutions. This optimism stems from the potential of generative AI to revolutionize various aspects of businesses, from enhancing customer experiences to optimizing internal processes. In the short term, companies will likely focus on pilot projects and experimentation, gradually integrating generative AI into their operations as they witness its positive influence on efficiency and profitability.

Goldman Sachs’ Cautious Approach to Implementing Generative AI

In a recent interview, Goldman Sachs CIO Marco Argenti revealed that the firm has not yet implemented any generative AI use cases. Instead, the company focuses on experimentation and setting high standards before adopting the technology. Argenti recognized the desire for outcomes in areas like developer and operational efficiency but emphasized ensuring precision before putting experimental AI use cases into production.

According to Argenti, striking the right balance between driving innovation and maintaining accuracy is crucial for successfully integrating generative AI within the firm. Goldman Sachs intends to continue exploring this emerging technology’s potential benefits and applications while diligently assessing risks to ensure it meets the company’s stringent quality standards.

One possible application for Goldman Sachs is in software development, where the company has observed a 20-40% productivity increase during its trials. The goal is for 1,000 developers to utilize generative AI tools by year’s end. However, Argenti emphasized that a well-defined expectation of return on investment is necessary before fully integrating generative AI into production.

To achieve this, the company plans to implement a systematic and strategic approach to adopting generative AI, ensuring that it complements and enhances the skills of its developers. Additionally, Goldman Sachs intends to evaluate the long-term impact of generative AI on their software development processes and the overall quality of the applications being developed.

Goldman Sachs’ approach to AI implementation goes beyond merely executing models. The firm has created a platform encompassing technical, legal, and compliance assessments to filter out improper content and keep track of all interactions. This comprehensive system ensures seamless integration of artificial intelligence in operations while adhering to regulatory standards and maintaining client confidentiality. Moreover, the platform continuously improves and adapts its algorithms, allowing Goldman Sachs to stay at the forefront of technology and offer its clients the most efficient and secure services.

Featured Image Credit: Photo by Google DeepMind; Pexels; Thank you!

Deanna Ritchie

Managing Editor at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.

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UK seizes web3 opportunity simplifying crypto regulations



Deanna Ritchie

As Web3 companies increasingly consider leaving the United States due to regulatory ambiguity, the United Kingdom must simplify its cryptocurrency regulations to attract these businesses. The conservative think tank Policy Exchange recently released a report detailing ten suggestions for improving Web3 regulation in the country. Among the recommendations are reducing liability for token holders in decentralized autonomous organizations (DAOs) and encouraging the Financial Conduct Authority (FCA) to adopt alternative Know Your Customer (KYC) methodologies, such as digital identities and blockchain analytics tools. These suggestions aim to position the UK as a hub for Web3 innovation and attract blockchain-based businesses looking for a more conducive regulatory environment.

Streamlining Cryptocurrency Regulations for Innovation

To make it easier for emerging Web3 companies to navigate existing legal frameworks and contribute to the UK’s digital economy growth, the government must streamline cryptocurrency regulations and adopt forward-looking approaches. By making the regulatory landscape clear and straightforward, the UK can create an environment that fosters innovation, growth, and competitiveness in the global fintech industry.

The Policy Exchange report also recommends not weakening self-hosted wallets or treating proof-of-stake (PoS) services as financial services. This approach aims to protect the fundamental principles of decentralization and user autonomy while strongly emphasizing security and regulatory compliance. By doing so, the UK can nurture an environment that encourages innovation and the continued growth of blockchain technology.

Despite recent strict measures by UK authorities, such as His Majesty’s Treasury and the FCA, toward the digital assets sector, the proposed changes in the Policy Exchange report strive to make the UK a more attractive location for Web3 enterprises. By adopting these suggestions, the UK can demonstrate its commitment to fostering innovation in the rapidly evolving blockchain and cryptocurrency industries while ensuring a robust and transparent regulatory environment.

The ongoing uncertainty surrounding cryptocurrency regulations in various countries has prompted Web3 companies to explore alternative jurisdictions with more precise legal frameworks. As the United States grapples with regulatory ambiguity, the United Kingdom can position itself as a hub for Web3 innovation by simplifying and streamlining its cryptocurrency regulations.

Featured Image Credit: Photo by Jonathan Borba; Pexels; Thank you!

Deanna Ritchie

Managing Editor at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.

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