SaaS Shift Toward Native Integrations
Senior executive at no-code startup on the rise of native integrations
The strategic issue is that the center of gravity in integrations is moving from a separate workflow tool to the SaaS product itself. Tray.io and newer embedded integration vendors sell the plumbing that lets a software company offer Salesforce, HubSpot, or Slack connections inside its own product, so users never leave the app to set up Zapier. That threatens Zapier on its highest value workflows, not the hobbyist long tail.
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Zapier built a huge business by being the universal switchboard across 3,000 plus apps, with an SEO engine and broad partner network that drove it to an estimated $310M ARR in 2023. But the same breadth creates shallow, off platform experiences compared with product native integrations.
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Tray.io sits between Zapier and enterprise infrastructure. It sells a low code iPaaS for more complex, higher volume workflows and reached an estimated $70M ARR in 2023. Paragon pushes even further toward embedded, developer first integrations that SaaS teams can ship inside their own UI and monetize as product features.
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In practice, this means software companies increasingly treat integrations like onboarding or permissions, a core product surface. They win deals because their Salesforce or Zendesk connection works better, refreshes faster, and keeps auth, settings, and error handling inside the product instead of sending users out to a separate automation tool.
The market is heading toward a split. Zapier remains the default cross app layer for SMBs and edge cases, while vendors like Tray.io and Paragon become the infrastructure behind the most important customer facing integrations. The winner at the high end will be the platform that owns the in app experience and captures integration usage as part of core product value.