Cloud Integration: What It Is and How It Works

In an era where even milliseconds matter to customers and partners, businesses can’t afford delays due to disconnected systems or isolated data storage. Fortunately, cloud integration has made the transfer of data and applications lightning-fast.

Well-built cloud integrations get all your applications talking seamlessly and data flowing across platforms effortlessly—it’s where operational efficiency transforms from a buzzword into a daily reality. Whether you’re a budding startup or an established enterprise, understanding cloud integration is essential for unlocking the full potential of the cloud. And with platforms like DigitalOcean simplifying your journey, there’s never been a better time to start cloud integration.

Below, we’ll walk you through everything you need to know about cloud integration, including its benefits, challenges, and must-follow best practices.

What is cloud integration?

Cloud integration is configuring multiple cloud services (and on-premise systems) to connect and interact. It involves creating workflows that allow data and applications to pass information back and forth across environments, whether they’re located in public clouds, private clouds, or on-site data centers.

Cloud integration aims to create unified, efficient, and agile cloud environments that can respond quickly to changing business needs. It can take several forms to serve different business functions and objectives:

• Data integration: Cloud data integration focuses on consolidating data from various sources—both cloud-based and on-premise—into a central repository. For example, a company might use cloud data integration tools to combine customer information from its customer relationship management (CRM) software with financial data from its ERP system. This unified view helps with more comprehensive analytics and better decision-making.

• Application integration: This involves linking different applications to work together more effectively. For instance, integrating an e-commerce platform with a CRM system can automate the flow of customer order information between the two formerly disparate systems. This keeps the sales team’s information about customer orders, preferences, and feedback up to date.

Process integration: Often seen as a broader and more complex form of application integration, process integration connects and automates business processes that involve multiple applications and data types. A common example is supply chain management, where purchase orders, inventory levels, and shipment details must be synchronized (in real-time) across several software solutions and departments.

Elements of cloud integration

Cloud integration involves several components that keep systems and applications working harmoniously. Here’s how these elements play a part in deploying your integration strategy:

Integration Platform as a Service (iPaaS)

Integration Platform as a Service is a suite of cloud services that enable the development and governance of integration flows connecting any combination of on-premise and cloud-based applications. iPaaS cloud integration platforms simplify the integration process and automate complex workflows (all without requiring hardware or middleware).

iPaaS translates to faster deployment times, lower integration costs, and improved scalability to adjust as integration needs change over time. It’s an essential foundation to integrate your cloud applications and services.

API management

Application Programming Interfaces (APIs) allow different software programs to communicate with each other. API management involves creating, publishing, and monitoring APIs in a secure and scalable cloud environment.

APIs allow your business to streamline operations by connecting services and accessing data across multiple platforms (on-prem and in the cloud). However, you’ll need to find the right APIs compatible with cloud integration services to guarantee they’re consistent, reliable, and secure to provide smooth and dependable connections.

Middleware

Middleware is the “glue” between different applications and databases, allowing them to communicate and operate together. It provides services enabling interoperability between computing systems and software applications—including everything from messaging services and data management to application services and authentication.

A middleware cloud integration platform simplifies hybrid application development, empowering you to build newer cloud-based applications that play nicely with legacy systems. It keeps your data moving through the cloud securely and on time (regardless of the operating environment).

How does cloud integration work?

Here’s a step-by-step look at how cloud integration typically works:

1. Identify integration needs: First, you’ll need to evaluate the existing IT infrastructure to determine which systems, applications, and data sources need to be integrated. This includes identifying key processes that require automation and pinpointing data silos that hinder business operational efficiency.

2. Choose the right integration tools: This might involve selecting an iPaaS solution, API management tools, or middleware that best fits your business’s technological environment and integration goals.

3. Design integration flows: Next, you’ll need to map out how data will move between systems and define the processes that will be automated.

4. Implement and configure: After designing the integration flows, the actual integration is implemented. This involves configuring the integration tools to connect the different systems and applications. During this phase, APIs or middleware might facilitate the communication and data exchange between systems.

5. Test and optimize: Once the integration tools are implemented, you’ll need to test and guarantee all systems operate smoothly and interact as expected.

6. Monitor: After the integration solution goes live, implement cloud monitoring for ongoing efficiency. Perform maintenance regularly to address any emerging issues, adapt to changes in connected systems, and update security protocols.

7. Iterate: Cloud integration is an ongoing process. As your business needs evolve and technology advances, you may need to update or modify the integration setup.

Benefits and challenges of cloud integration

Cloud integration harnesses the power of cloud computing to streamline and improve business operations. However, like any tech advancement, your organization will need to navigate a few challenges to fully take advantage of cloud integration’s potential.

Let’s take a look at both sides of the coin:

Benefits of cloud integration

• Increased efficiency: Automating data flows between applications reduces manual tasks and errors and allows staff to focus on higher-value activities.

• Improved data accessibility: Integrated systems provide a unified view of data across the organization, making it easier for decision-makers to access and analyze information quickly.

• Scalability: Cloud integration solutions can easily scale up or down based on business needs.

• Cost savings: Cloud integration leads to cloud cost optimization and reduces the need for physical infrastructure.

• Collaboration: Teams can collaborate more effectively (regardless of physical location) when systems are integrated and data is shared.

• Real-time insights: Cloud integration allows for the aggregation of data across various platforms, providing real-time insights that can lead to more informed and timely business decisions.

Challenges of cloud integration

• Complexity in integration: Integrating multiple cloud and on-premise systems can be complex, especially when dealing with legacy systems and different technologies.

• Security risks: Handling sensitive data across multiple platforms increases the risk of data breaches and security threats.

• Compliance issues: With data spread across various systems, maintaining cloud compliance with data protection regulations becomes more challenging.

• Dependency on service providers: Reliance on external integrated cloud services means businesses must trust their service providers’ reliability and uptime guarantees.

• Skill gaps: Properly implementing and managing cloud-based integration solutions often requires specific skills that your workforce might not have.

Examples of cloud integration

Here are some hypothetical cloud integration examples of businesses (like yours) leveraging cloud system integration to solve common challenges and improve operations:

SaaS startup

A growing startup needs to better integrate with third-party services to offer improved products and features to its customer base. They adopt a cloud integration solution using iPaaS to seamlessly connect their core platform with essential APIs. This strategic move allows users to synchronize their data across different platforms.

Digital marketing business

A digital marketing business needs to consolidate data from various advertising platforms and analytics tools. They implement a cloud integration to funnel all of this data into their AI engine, allowing real-time processing and automation of data-backed marketing campaigns. This integration provides clients with a unified dashboard where they could see all their metrics in one place.

FinTech startup

A FinTech startup at the forefront of blockchain technology struggles with the complex demands of synchronizing financial data across systems while following strict regulatory standards. They implement a cloud integration framework combining iPaaS and middleware to manage real-time data flows and compliance checks. This solution improves transaction security, system reliability, and product scalability.

7 best practices to implement cloud integration

Cloud integration requires a strategic approach and long-term planning. It needs research, due diligence, and commitment for a successful implementation. Here are some best practices to consider when starting your journey into the cloud:

1. Assessment and planning

This involves mapping out all the systems, applications, and data sources you aim to integrate. Doing this creates a clear roadmap of the integration process, allowing you to identify potential challenges early on and allocate resources more effectively.

2. Prioritize data security

Prioritizing security protects your sensitive business data and maintains compliance with data protection regulations. Implement robust security measures to protect your cloud integration:

• Encryption during data transfer
• Multi-factor authentication for access control
• Regular security audits
• Firewalls and intrusion detection systems (IDS)
• Frequent backups
• Patch management
• Security training for employees

3. Choose the right integration tools

The tools and cloud integration platforms you select for integration can make or break the process. Opt for cloud integration solutions that align with your business’s unique needs.

Whether you’re considering an iPaaS solution, custom-built middleware, or third-party connectors, confirm that they offer the features and scalability your business requires (today and tomorrow).

4. Standardize data formats

Data inconsistency can be a significant roadblock in the integration process. Adopt consistent data formats and structures to create smooth data flow between your systems.

Standardizing your data formats simplifies data mapping, reduces the complexities of data transformation, and keeps your data consistent and accurate across everything in your cloud integration platform.

5. Opt for modular integration

Modular integration (as opposed to bulk integration) allows for easier management, scalability, and flexibility. If a specific module needs updating or modification, it can be done without disrupting the entire integrated system, ensuring continuity and adaptability.

6. Design for scalability

As your business grows and evolves, so will your integration needs. Designing your integration architecture with scalability in mind ensures that you can easily scale up or down based on changing business demands.

This forward-thinking approach means you’re prepared for future growth without needing major system overhauls.

7. Document everything

Thorough documentation is the backbone of any successful integration process. Maintain detailed records of integration processes, data mappings, workflows, and configurations to facilitate easier troubleshooting and provide consistency.

Comprehensive documentation also helps onboard new team members and provides a reference point for future integrations.

Build your cloud infrastructure with DigitalOcean

The right cloud integrations can transform how your business innovates and scales to meet customers’ evolving needs. Whether it’s improving product functionality, streamlining operations, or guaranteeing compliance, cloud integration can be a game-changer for any forward-thinking business.

Need some help making it happen? We’ve got you covered.

DigitalOcean provides a range of cloud infrastructure solutions tailored to meet the unique demands of growing businesses. From scalable compute instances to managed databases and robust networking capabilities, our platform provides the tools you need to build, manage, and scale applications more efficiently and cost-effectively.

See for yourself. Start building on DigitalOcean today to see how our cloud platform grows with you, supports your initiatives, and helps you achieve your business goals.