IPaaS or DXP: Which One Do You Need?

While iPaaS can help you integrate and align different solutions, a DXP allows you to improve customer experience.


Do you need iPaaS or a DXP? There’s no single right answer. These software categories are not mutually exclusive. In fact, they can be complementary. While iPaaS can help you integrate and align different solutions, a DXP allows you to improve customer experience.

Let’s take a step back to define our terms quickly. IPaaS refers to “Integration-Platform-as-a-Service” while DXP stands for “Digital Experience Platform.” Both platforms can be considered digital tools that help businesses improve their operations and effectiveness by consolidating different products and services into singular access points.

We’ll explore these two types of software independently of each other to get a better sense of the benefits they can provide your business.

Exactly What Is IPaaS and How Does It Differ From a DXP?

For a concise iPaaS definition, we turn to Gartner. The firm describes iPaaS as “a suite of cloud services enabling development, execution and governance of integration flows.” Gartner proceeds to explain that these integration flows may connect apps and services that are remotely hosted or based on the premises.

“Integration as a service” denotes that the platform responsible for connecting disparate solutions is based in the cloud and runs on a subscription model. Put simply, iPaaS architecture enables businesses to bring separate back-end and operational programs into contact with each other, enabling more accurate reporting, better decision-making and a clearer view of accurate, real-time data across departments.

Digital experience platforms, on the other hand, are customer-facing applications, usually based in the cloud, that enable smoother online interactions between the customer and the business.

Think of iPaaS as the tie that connects separate business solutions together. As such, iPaaS may be used to integrate the back end of a DXP with other online business tools, like logistics or remarketing applications.

Because of this, it’s important to keep in mind that DXP and iPaaS are complementary tools. Which one you need will depend on your objectives, and you may need both.

Why Might You Need IPaaS?

Businesses might find that they need an iPaaS solution if they regularly feel like they suffer from roadblocks or dysfunction due to siloed data. Another indicator that an iPaaS option may be beneficial for users is the presence of replicated work related to handling data within or between departments. These issues can slow organizations down and introduce obstacles. Such challenges can also lead to a greater chance of data discrepancies due to human error.

IPaaS companies pitch real-time integration as a solution to these problems. However, you should carefully examine how the needs of your business compare to the product offerings available from different cloud integration platforms. A 2019 TrustRadius survey of iPaaS buyers found that only 27% of respondents used all of the capabilities of their iPaaS. Do your homework so you can avoid paying for cloud integration services that you won’t use.

When Should You Implement IPaaS at Your Organization?

If your business could benefit from solving issues related to data integration, redundant work and ineffectual communication between different digital tools, it may be time to consider which iPaaS solutions may best suit your needs. You’ll also want to reserve time for thoroughly researching different iPaaS vendors and engaging in cross-departmental collaboration.

Encouraging cross-departmental sharing will help you uncover your pain points. Leaders in different areas of the company might not even know there’s an issue until they explore the processes that could be solved with greater integration.

Reading reviews and meeting with a variety of different iPaaS vendors can help you find the tools that best meet the unique needs you’ve uncovered at your organization. You may have to spend a significant amount of time getting to know the various iPaaS cloud applications, but it will be worth it.

When Might You Need a DXP?

Investing in the development and deployment of a new digital experience platform could prove instrumental for companies undergoing a wider digital transformation initiative. As you move your business processes online and into the cloud, your customers should likewise benefit from the shift to a DXP.

You may also be motivated to roll out a DXP because of lagging customer experience, especially in traditional industries that suddenly find themselves faced with growing competition from primarily digital platforms.

Lastly, a DXP enables more efficient transferring of customer data, especially when connected to other relevant programs like a customer relationship management (CRM) system. An iPaaS product may be instrumental in facilitating these connections.

When Should You Implement a DXP at Your Organization?

If you don’t already have one, consider rolling out a DXP as soon as you feel you have a good grasp of what your customers want from their online experience when they use your business’s application. You can’t afford to keep anybody waiting.

The 2019 Kony Digital Experience Survey found that 47% of customers would look for alternatives if their digital experience at a particular company was not ideal. The same report also concluded that a majority of companies across several sectors were either keeping pace with the digital experience provided by their competitors or falling behind other companies.

That means there’s an awful lot of customers who are willing to look elsewhere and there are many companies that aren’t innovating enough to keep those customers’ attention. Focus on providing your followers with smooth customer journeys. When your DXP is ready for the public, prioritize application integration so you can efficiently carry out requests from your customers.

DXP and IPaaS: A Winning Combination

Overall, DXP and iPaaS are complementary digital tools that can help you achieve more satisfactory customer experiences while ensuring better integration of your business applications. While a DXP can help you improve the customer experience online, iPaaS solutions ensure data accuracy and integrated functionality across internal departments.

Are you interested in investigating how the Dashboard can help you provide your customers with a better digital experience? This solution can also integrate with digital products from outside vendors to better support your clients. Request a demo today to find out more.

Related posts

How To Select the Right SMB Software Solutions for Small Business Success


How To Sell B2B SaaS


Add Value for Your Clients and Increase Revenue by Offering a SaaS Marketplace


How SMBs Can Benefit From Business Dashboards

Leave a Reply

Your email address will not be published. Required fields are marked *