Explore the 7 Factors That Affect iPaaS Pricing Models 
Companies are using more business applications. So, this has raised the need for integration systems to manage integrations between separate environments. We previously discussed the top 6 affordable iPaaS vendors under $5,000, and have written whitepaper that covers low-cost automation providers:
In this article, we explain the iPaaS pricing models of vendors in more detail, focusing on specific features, so you get a better idea of what you’re paying for.
Understanding iPaaS pricing models
A) Freemium pricing
Most iPaaS vendors offer free versions of their products, albeit with limited functionality of the standard features, to cover simple use cases.
B) Subscription-based pricing
The most common pricing model, subscription pricing comes in tiers, with each package having a certain number of integrations, users, and processing capabilities. This model provides predictable recurring costs, a good fit for businesses with a consistent integration workload.
C) Per-per use pricing
Under this model, customers pay for how much they use (i.e. number of integration flows and API integrations, volume of data processed, etc.). This model is cost-effective for businesses with variable integration workloads. But the cost can be unpredictable and high during periods of heavy usage.
D) Enterprise pricing
This is when the iPaaS provider curates a customized model for the client to fit their specific needs, at a custom pricing. For instance, a company might need unlimited workflows, unlimited users, and unlimited integrations that the basic package of an integration platform doesn’t provide.
What are key factors that affect iPaaS pricing?
Whether the pricing model is subscription-based or pay-per-usage, there are common denominators that dictate how much you pay. Those include:
1. Data volume
Data volume that companies deal with affects the price. This includes the number of API calls that will access data, records transferred, or the data storage.
2. Integration complexity & integration marketplace
The complexity of the integrations to connect the dedicated and separate environments affects the price. Integrations between common SaaS products, like Salesforce to Hubspot, can be straightforward through drag and drop interface and pre-built connectors.
In contrast, it’s harder to integrate apps with legacy systems which will need custom connectors to be built.
3. Number of users
Number of users who need access to the iPaaS platform creates additional costs. This is particularly true for subscription-based pricing models, where different tiers often include a certain number of users.
4. Service level agreements (SLAs)
Higher-level SLAs that promise faster response and resolution times usually cost more. A business that requires 24/7 support or near-zero downtime may need to opt for a higher-level (and more expensive) SLA.
5. Security requirements
Enhanced security measures add to the cost of an iPaaS tool. This can include advanced encryption, dedicated hardware, secure data storage, a full audit trail, or stringent access controls for customers’ data. Businesses that handle sensitive data, such as financial or health information, may need these additional security features.
Should a company expand their business processes to require more integrations, concurrency, and capacity to process data without sacrificing performance, they will need to pay the iPaaS vendor to implement them.
7. Compliance needs
iPaaS solutions that need to comply with specific regulations (like GDPR, HIPAA, etc.) may be more expensive. Compliance can require additional security measures, data management capabilities, and auditing features, all of which can add to the cost.
What are some affordable iPaaS tools?
Below we listed the 5 affordable iPaaS tools with their pricing, trial period, number of pre-built connectors and automation capabilities.
- Argos Labs
|Pricing per year
|# of pre-built connectors
|60-day full version
|Unlimited with SDK
|Python backend low-code RPA for unlimited automation steps
Yes, but limited to 30,000 automation steps every month. After that, it’s 1 cent per each step.
|$1,200 for 3 data flows and 15 data sources
|14-day, in addition to a limited-version free version
Other iPaaS vendors
Besides the affordable vendors, there are other iPaaS tools that are pricier. Those include:
- Oracle integration cloud service
- Cleo integration cloud services
- Talend cloud data integration platform
For more on integration
If you are interested in learning more about integration, read:
- Legacy System Integration: Top 4 Methods, Pros & Cons
- 40+ Data Integration Tools & Vendors: Sortable List
- Intelligent Automation Tools: Key Features & Top Vendors
Explore our list of data integration tools, and reach out to us if you need further assistance:
Cem has been the principal analyst at AIMultiple since 2017. AIMultiple informs hundreds of thousands of businesses (as per similarWeb) including 60% of Fortune 500 every month.
Cem's work has been cited by leading global publications including Business Insider, Forbes, Washington Post, global firms like Deloitte, HPE, NGOs like World Economic Forum and supranational organizations like European Commission. You can see more reputable companies and media that referenced AIMultiple.
Throughout his career, Cem served as a tech consultant, tech buyer and tech entrepreneur. He advised businesses on their enterprise software, automation, cloud, AI / ML and other technology related decisions at McKinsey & Company and Altman Solon for more than a decade. He also published a McKinsey report on digitalization.
He led technology strategy and procurement of a telco while reporting to the CEO. He has also led commercial growth of deep tech company Hypatos that reached a 7 digit annual recurring revenue and a 9 digit valuation from 0 within 2 years. Cem's work in Hypatos was covered by leading technology publications like TechCrunch and Business Insider.
Cem regularly speaks at international technology conferences. He graduated from Bogazici University as a computer engineer and holds an MBA from Columbia Business School.
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