After examining the EDI space from a platform perspective, I wanted to take a closer look at the market itself, focusing on adoption and maturity. For more than 40 years, electronic data interchange (EDI) has been a critical backbone of global commerce, which makes it a mature technology. Yet despite its longevity, EDI has never truly scaled beyond the largest enterprises. As Geoffrey Moore’s Crossing the Chasm framework describes, EDI has remained stuck between the early market and the mainstream. It has been embraced by technology enthusiasts and large enterprise IT teams, but never fully accessible to the broader majority of businesses.
Historically, only mega-corporations with dedicated integration teams could become “hubs,” forcing their suppliers and partners to adopt their systems. This hub-and-spoke model created strong network effects, but it also excluded much of the market. The cost, complexity, and rigidity of legacy EDI networks meant that most mid-market and emerging companies could only participate as passive “spokes.”
Why the Chasm Exists
The chasm has persisted because the barriers to becoming a hub were so high:
- Infrastructure costs: Dedicated VANs, on-premises translators, and private networks.
- Skilled labor dependency: Specialized EDI analysts and full IT teams to onboard partners.
- Closed systems: Limited or no APIs, vendor lock-in, and slow onboarding processes.
- High switching costs: Large capital investments discouraged experimentation and innovation.
This left EDI functioning more as a compliance tool for the largest enterprises rather than as a scalable collaboration platform for all.
The iPaaS Shift: Turning Everyone Into a Hub
Today, modern iPaaS and API-first platforms are breaking this stalemate. Companies like Boomi, Celigo, and Orderful have made integration programmable, scalable, and self-service. These platforms remove the complexity of network connectivity, partner onboarding, and data transformation, all of which once required entire departments.
This shift is redefining what it means to be a hub. It is no longer about size; it is about automation capability. Any business that can orchestrate and automate its supply chain integrations can now act as a hub, extending connectivity outward to its network. The traditional distinction between “hub” and “spoke” is dissolving.
The Tipping Point for EDI
The industry is now poised to cross the chasm. As Moore’s model predicts, the key to mainstream adoption is reducing complexity, risk, and cost enough for pragmatic buyers to adopt at scale. That moment has arrived:
- Lower technical barriers mean faster time-to-value.
- API-first platforms enable iterative and agile adoption.
- Cloud scalability removes the infrastructure burden.
- Marketplace models reduce partner onboarding friction.
Where legacy networks constrained growth, API-driven iPaaS models unlock it. The focus is shifting from maintaining brittle connections to enabling dynamic, scalable digital supply chains.
From Early Market to Early Majority
The leap from early adopters to the early majority is underway. Businesses that embrace modern, API-first EDI platforms are building competitive advantage, while those that cling to legacy networks risk being left behind. As noted in earlier discussions on EDI and digital transformation, the investments enterprises made in internal integration over the last decade are now pushing them outward. They are seeking flexible networks that match their internal agility. The companies positioned to win are those turning supply chain automation into a growth lever, not a compliance obligation.
The Path Forward
Crossing the chasm requires more than technology. It demands a mindset shift. Companies must stop viewing EDI as a static requirement and start treating it as a scalable platform for collaboration. With the right infrastructure, every business can be a hub.
The age of closed networks is ending. Legacy vendors that cling to them are losing share, while emerging providers and iPaaS platforms are extending network connectivity with new EDI capabilities. The age of automated and collaborative supply chains is finally beginning.
What does ‘crossing the chasm’ mean in EDI?
It refers to moving EDI beyond niche adoption by large enterprises into mainstream use. Modern API-first and iPaaS solutions reduce complexity, cost, and risk so more businesses can adopt EDI.
Why has EDI been stuck as a compliance tool?
Legacy EDI systems required expensive infrastructure, skilled labor, and closed networks. This kept EDI positioned as a compliance requirement for large companies rather than a scalable growth lever.
How are iPaaS platforms changing EDI?
Integration Platform as a Service (iPaaS) providers like Boomi, Celigo, and Orderful simplify partner onboarding, automate data transformation, and make it possible for any business to act as a hub.
What benefits do modern EDI solutions bring?
They deliver faster time-to-value, lower infrastructure costs, cloud scalability, easier partner onboarding, and enable dynamic, automated supply chain collaboration.
Who gains the most from EDI crossing the chasm?
Mid-market and emerging companies benefit most, as they can now adopt EDI affordably, integrate flexibly, and turn compliance-driven processes into growth opportunities.
John Mecke
View More PostsJohn is a 25 year veteran of the enterprise technology market. He has led six global product management organizations for three public companies and three private equity-backed firms. He played a key role in delivering a $115 million dividend for his private equity backers – a 2.8x return in less than three years. He has led five acquisitions for a total consideration of over $175 million. He has led eight divestitures for a total consideration of $24.5 million in cash. John regularly blogs about product management and mergers/acquisitions.
