Cloud App Integration Challenges Limit Demand

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Cloud data integration

The integration of applications across hybrid IT environments is limited by the quality of the tools available, a new study finds.

The top data integration initiatives include migrating data from one system to another (42%), from back office to front office (37%), integrating data for business intelligence/analytics (37%) and integrating on-premise apps (35%).

On-premise-to-cloud integration, cloud-to-cloud integration and cloud data replication are top priorities for only 16%, 10% and 10% of enterprises, respectively.

54% rely on custom coding as an integration method. The top custom coding method (48%) was via APIs. But 59% also report using third-party software, connectors and integration platforms.

Respondents identified time to develop solutions (45%) as their top challenge, followed by cost (36%). Only 30% expressed concern about the time (or ongoing effort) to update solutions.

59% are dissatisfied with their ability to sync data between cloud and on-premise systems; 61% remain unsatisfied syncing cloud-to-cloud apps and data. Only 12% are using a cloud integration platform.

CRM is trending slowly toward the cloud, with 30% reporting use of a cloud-based solution. Core business systems, such as CRM, in which investments were made years ago, are heavily premise-based.

Only 16% report using cloud-based business intelligence solutions. But as more data moves into the cloud, that number is expected to increase.

Adoption of cloud-based marketing automation has skyrocketed, with 62% using a cloud-based solution. Similarly, 60% are using cloud-based sales force automation solutions.

Only 9% are running ERP in the cloud. Given the large number of these systems already deployed on-premise, it may be a while before large numbers of ERP apps are deployed in the cloud.