In today’s connected world, the role of system integration engineers is important: more and more systems are designed to connect.
Vertical integration (as opposed to “horizontal”) is the process of integrating subsystems according to their functionality by creating functional entities also referred to as silos. The benefit of this method is that the integration is performed quickly and involves only the necessary vendors, therefore, this method is cheaper in the short term. On the other hand, cost-of-ownership can be substantially higher than seen in other methods, since in case of new or enhanced functionality, the only possible way to implement (scale the system) would be by implementing another silo. Reusing subsystems to create another functionality is not possible.
Methods of integration
Star integration also known as spaghetti integration is a process of systems integration where each system is interconnected to each of the remaining subsystems. When observed from the perspective of the subsystem which is being integrated, the connections are reminiscent of a star, but when the overall diagram of the system is presented, the connections look like spaghetti, hence the name of this method.
The cost varies because of the interfaces that subsystems are exporting. In a case where the subsystems are exporting heterogeneous or proprietary interfaces, the integration cost can substantially rise. Time and costs needed to integrate the systems increase exponentially when adding additional subsystems. From the feature perspective, this method often seems preferable, due to the extreme flexibility of the reuse of functionality.
Horizontal integration
Horizontal integration or Enterprise Service Bus (ESB) is an integration method in which a specialized subsystem is dedicated to communication between other subsystems. This allows cutting the number of connections (interfaces) to only one per subsystem which will connect directly to the ESB. The ESB is capable of translating the interface into another interface. This allows cutting the costs of integration and provides extreme flexibility.
With systems integrated using this method, it is possible to completely replace one subsystem with another subsystem which provides similar functionality but exports different interfaces, all this completely transparent for the rest of the subsystems. The only action required is to implement the new interface between the ESB and the new subsystem.
Source: Wikipedia