Integration-platform-as-a-service provider Dell Boomi has announced two local customers and is reporting strong demand for its services which aid digital transformation projects.
Australian fleet management company Orix, has tapped Boomi to connect the data and platforms it uses to power its fleet of more than 34,000 cars and small trucks. Industry super fund HESTA (Health Employees Superannuation Trust Australia) will use Boomi’s integration platform to improve the experience of its 860,000 members.
During a media lunch, technology executives from both companies cited improved agility, data access and an ability to whether disruption as major selling points.
Integration-platform-as-a-service (iPaaS) is a set of automated tools or a platform used for connecting software applications. Its popularity appears to be increasing as organisations struggle to integrate various apps and data common in digital transformation.
For example, a common use case is connecting a CRM application like Salesforce with ERP software like NetSuite. iPaaS is also often used to integrate on-premises applications and data with cloud applications and data.
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According to Dell Boomi, the iPaaS market is “very healthy” because modern middleware has become vital for successful digital transformation.
“When you do get it right it is transformative,” said Michael Evans, managing director APJ at Dell Boom.
“Modern middleware can be transformative and strategic for the customers that are deploying it. About 65 to 70 per cent of most digital transformation projects fail primarily because that integration piece, or some of the orchestration pieces … are not well defined or coordinated effectively.”
Overall the iPaaS market is growing at around 30 to 40 per cent, according to Evans.
In the last financial year Dell Boomi grew significantly, Evans said, adding 1,700 new customers, around six per day. Currently the company claims to have over 9,000 customers globally and 98 per cent retention rate.
Evans could not break out specific results for the local region but said the growth rate was similar to global trends. Last year the company expanded into Japan and Hong Kong, and expects to move into Perth and New Zealand markets in the coming year. The regional headquarters remains in Sydney, where it is closest to most of its Australian customers.
Last year Dell Boomi claimed triple digit growth in the Asia Pacific and Japan region.
The Boomi platform will serve as the core data exchange between Orix’s applications, including integrating Salesforce with its custom-built fleet management application. That ability and the potential to integrate new applications gives Orix the flexibility it needs to survive in an industry beset by disruption on both sides of the value chain, according to its general manager, technology and innovation, Richard Hilliard.
He said Orix is bracing for change as car manufacturing evolves and customers investigate mobility-as-a-service options, threatening traditional revenue streams.
“The fleet management business is a relatively rigid value chain … If we look at where our business is going, that’s under threat from both sides of the value chain.”
Vehicle manufacturers are responding to slowing sales by moving into leasing and ride sharing themselves, Hilliard said, while customers expectations are being adjusted by the rise of mobility-as-a-service.
“That means we need to think a bit differently. We don’t have a crystal ball about what’s going to happen but I know full well that right now we need to start adapting and have the ability as and when we need to,” Hilliard said.
The new partnership helps Orix link its backend legacy systems with new products and third party applications, while remaining able to respond to future changes, according to Hilliard.
“Putting in a platform like Dell Boomi has enabled us to actually do that and start plugging in our mobile applications, start plugging in our new portals and not exposing our customers to what’s can be a pretty clunky frontend.”
Industry super fund HESTA, which controls around $47 billion of investments, expects the new partnership will improve the experience it delivers to members. Technology hasn’t been a hallmark of the superannuation industry, but the rise of personalisation and competition from CX-obsessed fintechs has made it table stakes, according to Michael Collins, general manager, information security and technology at HESTA
“The consumerisation of technology has set a precedent: Australians want the same personalisation, convenience and other benefits from their super providers as they get from consumer brands,” Collins said.
“To give them these experiences, we look for technology partners who can help us use data to continuously learn about the needs of our diverse set of members.”
The long term goal, and where Dell Boomi will help, is forming a one-to-one view of all 860,000 HESTA members, according to Collins. HESTA has partnered with Boomi for over a year already and the relationship is helping improve the fund’s view of members, he said.
“Seven years ago we had a very broad view of who [our] members were, what their needs were and where they were in that financial journey that they’re going on. It’s very hard to be targeted and relevant to those members unless you understand the subtle differences between where they are in their journey.”
Collins said the member view is continually improving with the use of technology and its integration of best of breed solutions is critical.